(MENAFN- Khaleej Times) Dubai - Majid Al Futtaim, or MAF, the Dubai-based shopping mall, retail and leisure conglomerate, announced on Tuesday plans to double its business within five years after reporting a 10 per cent year-on-year surge in earnings before interest, taxes, depreciation and amortisation, or EBITDA, to Dh3.6 billion in 2014.
In a statement, the leading mall operator said its revenue jumped 11 per cent to Dh25 billion as its total assets reached more than Dh45 billion and a net debt of Dh8 billion as of end-2014. Both Fitch Ratings and Standard & Poor's had reaffirmed the company's investment-grade rating of BBB, with a stable outlook during the year.
In line with its plans to double the size of the business over the next five years, the group plans further investment to deliver world-class malls in the region. Additional hypermarkets and supermarkets, as well as family entertainment centres, are also planned, the statement said.
"This expansion, combined with MAF's commitment to create positive economic impact in the countries in which it operates, will deliver thousands of new jobs in the region and create exciting destinations to support tourism growth," it said.
Iyad Malas, chief executive officer at MAF Holding, said the company's ongoing modernisation, financial strength, and operational expansion has delivered strong financial performance and positive long-term impact to the region's emerging markets.
"Our rebrand united our companies under one umbrella corporate brand identity and vision, to provide synergy and stronger brand equity in all of our markets. This was an important exercise that has helped us position ourselves as pioneers in retail, shopping, leisure and entertainment and to achieve our ambition of doubling the size of the business in the next five years," he said.
Malas said the company would continue expanding its geographical footprint across the Middle East and North Africa, bringing innovative new experiences to new populations, with a strong focus on Egypt and Saudi Arabia.
"This is in addition to strengthening our assets and competitive position in our home market of the UAE." MAF said its property business, which contributed 66 per cent to the group's overall EBIDTA, reported a pre-tax profit growth of seven per cent to reach Dh2.4 billion last year while its retail business grew 16 per cent to reach Dh1.1 billion.
The property business, which develops, owns and manages the company's shopping malls, hotels and mixed-use communities, increased footfall during the past year at its 13 consolidated shopping malls by six per cent to 167 million consumers.
The Retail business that holds exclusive rights to the Carrefour franchise in 38 markets across the Middle East, Africa and Central Asia, and currently operates in 12 countries, continued to offer convenience to consumers by opening 19 new Carrefour stores and creating around 1,700 jobs in 2014.
Revenue increased by 11 per cent to Dh 21 billion and EBITDA rose by 16 per cent to Dh 1.1 billion, contributing around 32 per cent of the group's EBITDA.
MAF Ventures - a diverse group of fast growing companies that complement the core business through their offerings in cinemas, leisure and entertainment, financial services, fashion and healthcare and JVs in facilities management and F&B - achieved strong operational growth with revenue increasing by 21 per cent to Dh1 billion and EBITDA for the year increasing by 26 per cent to Dh 160 million.
MAF issued its first 10 year $ 500 million bond in May 2014, extending the average life of the company's debt portfolio. This was the first 10 year issuance out of Dubai since 2010, and the longest tenure achieved by a Dubai corporate issuer.
In addition, the company further optimised its debt portfolio on the back of its solid financial performance and strong liquidity conditions in the banking market. Liquidity position continues to be strong, with more than two years of gross financing needs covered through its cash and available committed lines.
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