Majid Al Futtaim Reports H1 Revenue of $4.55 Billion
Majid Al Futtaim, a leading shopping malls, communities, retail, and leisure pioneer across the Middle East, Africa, and Central Asia, on Tuesday said that despite macroeconomic headwinds from geopolitical instability and currency devaluations in the region, the Group has delivered a stable performance, supported by its diversified portfolio and strong balance sheet.
Announcing its operational and financial results for H1-2024, Majid Al Futtaim reported a 6% decline y-oy in consolidated revenue to $4.55 billion, a 2% decline y-o-y in consolidated EBITDA to $570 million and a 6% decline in net profit after tax to $440 million.
At constant FX rates, the Group revenue declined by 3%, while EBITDA and net profit increased by 1% in the same period. The Group continues to maintain a healthy balance sheet with assets valued at approximately $19.06 billion, a 2% increase y-o-y.
Majid Al Futtaim-Holding CEO Ahmed Galal Ismail said that the H1-2024 results continued to underscore the strength of their diversified portfolio, protecting overall profitability despite the challenges within some of our current operating environments.
According to him, Majid Al Futtaim Properties delivered a record performance, driven by the success of the UAE-based shopping malls and strong consumer confidence in Majid Al Futtaim’s Tilal Al Ghaf and newly launched Ghaf Woods residential developments. The Group’s lifestyle company continued to see positive demand across its portfolio, while the entertainment company showed encouraging progress in its cinema admissions, reflecting the steady return of quality content.
“More broadly for the remainder of the year, the Group ‘s interests will continue to focus on strengthening its core, investing prudently to drive value creation for all stakeholders, and bringing great moments to our customers, communities and colleagues alike,” he added.
Majid Al Futtaim Properties registered 9% year-on-year growth in revenues to reach $1.01 billion primarily driven by Tilal al Ghaf residential real estate development as well as an increase in revenues from the Group’s UAE shopping malls. EBITDA increased by 11% to $520 million.
Shopping malls registered 8% y-o-y revenue growth and recorded 96% occupancy. Hotels reported in increase in revenue per available room (RevPAR) of 18% year-on-year mirroring Dubai’s increasing appeal as a tourism hub as the city welcomed over 9 million overnight visitors in the first half of 2024, while average occupancy was down by 2%.
Sales Pick Up
The Group also continued to drive sales across its residential community portfolio, booking $1.61 billion in gross sales in the first half of the year. In June, Majid Al Futtaim launched a new residential development in Dubai, Ghaf Woods, a first-of-its-kind integrated forest-living community, which saw its first phase of 1,000 units in Dubai sell out, demonstrating strong market interest and demand.
The Group’s lifestyle business reported an increase in revenue by 23% to $131.77 million and added eight new stores in the first half, with a total of 78 stores across the region. While SHARE, the Group’s loyalty programme grew its membership by 8.2%, reaching 4 million members.
Majid Al Futtaim Retail registered an 11% year-on-year decline in revenue to AED 11.6 billion and a 47% year-on-year decline in EBITDA to AED 278 million. This is attributable to declining basket size resulting from dampened consumer sentiment following geopolitical conflict in the region and the impact of currency devaluation in Egypt and Kenya. With constant FX rates, revenue would have declined by 8%.
Majid Al Futtaim Retail’s discount grocery retail brand in Egypt, Supeco, continued to grow with four store openings in H1 and another 11 planned for the remainder of 2024. The success of the brand highlight’s Majid Al Futtaim’s commitment to meeting the changing demands of local markets.
