Majid Al Futtaim saw revenues of $9.9bn and profit of $1.1bn last year, according to an operational and financial results report for 2022.
The retail giant was resilient last year, despite increasing challenges in the form of inflation, supply chain pressures and energy shortages slowing global economic growth in 2022.
Majid Al Futtaim’s consolidated revenue increased by 12 percent to AED 36.3bn ($9.9bn) and EBITDA grew by 4 per cent to AED4.1bn ($1.1bn), driven by the group’s solid operational performance and relentless focus on improving the customer experience through investments in digital transformation, data analytics and loyalty programs.
Majid Al Futtaim profits
Majid Al Futtaim reported a 2 per cent decrease in net profit to AED2.4bn ($653m) and continues to maintain a strong balance sheet, with assets valued at approximately AED66bn ($18bn), up 9 per cent year-on-year, and net borrowings of AED14.2bn ($3.9bn).
Ahmed Galal Ismail, CEO at Majid Al Futtaim – Holding, said: “Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the group to achieve double digital revenue growth despite the ongoing macroeconomic challenges.
“The potential impact of these headwinds has been further lessened by the outstanding performance of our properties portfolio, which has contributed 74 percent of total EBITDA.”
Majid Al Futtaim – Properties saw revenue increase by 43 percent to AED5.8bn ($1.6bn), while EBITDA grew 16 percent to AED3bn ($816m).
This was driven by robust performance across the hotels and communities’ businesses and bolstered by the continued strong recovery across shopping malls, including the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021.
Shopping mall footfall increased 16 percent to 212 million visitors, whilst tenant sales grew 11 percent
In addition, real estate development Tilal Al Ghaf, recorded gross sales value of AED4.4bn ($1.2bn) during the year, while recognising revenue of AED1.8bn ($490m) as construction progressed.
Majid Al Futtaim – Retail reported a 7 percent increase in revenue to AED28bn ($7.6bn) in 2022, driven by renewed consumer confidence, easing of COVID-19 restrictions, and rebound in travel and tourism in countries where Majid Al Futtaim operates.
Retail EBITDA declined 14 percent to AED1.2bn ($327m).
The operating company has expanded its presence in the region, opening seven hypermarkets and 28 supermarkets across nine countries and bringing the total number of stores to more than 450.
Majid Al Futtaim Retail’s long-term investment in enhancing its omnichannel offering contributed to revenue growth from digital sales by 51 percent year-over-year.
Majid Al Futtaim – Entertainment revenue increased 23 percent to AED1.6bn ($436m) while EBITDA grew 68 percent to AED126m ($34.3m), primarily due to improved performance following the relaxation of occupancy restrictions and the release of strong movie content.
The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the MENA region starting February 2023, is expected to fuel further growth for Majid Al Futtaim Entertainment.
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