Majid Al Futtaim, a leading player in shopping malls, communities, retail, and leisure across the Middle East, Africa, and Central Asia, has released its financial results for the first half of 2024.
Despite facing macroeconomic challenges, including geopolitical instability and currency devaluations, the Group demonstrated resilience through its diversified portfolio and robust balance sheet.
For the period ending June 30, 2024, Majid Al Futtaim reported a 6% decrease in consolidated revenue to AED 16.7 billion and a 2% decline in EBITDA to AED 2.1 billion, with net profit falling 6% to AED 1.6 billion. At constant FX rates, revenue declined by 3%, while EBITDA and net profit saw modest increases of 1%.
CEO Ahmed Galal Ismail emphasized the Group’s strong performance amid challenging conditions, highlighting record results from Majid Al Futtaim Properties, driven by the success of Tilal Al Ghaf and the Ghaf Woods residential developments. The Group's shopping malls saw an 8% revenue growth, maintaining a 96% occupancy rate, while the hospitality sector benefited from a 18% rise in revenue per available room (RevPAR).
The Group's Cinemas portfolio saw a 3% increase in admissions, contributing to a 103% growth in EBITDA. Notable additions include 13 new screens in Saudi Arabia and the launch of a multiplex at Jeddah Park by VOX Cinemas. Majid Al Futtaim’s Lifestyle business reported a 23% revenue increase, expanding its store count by eight.
Conversely, Majid Al Futtaim Retail faced challenges with an 11% decline in revenue and a 47% drop in EBITDA, impacted by reduced basket sizes and currency devaluation in Egypt and Kenya. However, the Retail Digital vertical showed promising growth with a 16% revenue increase and positive EBITDA for the first time.
The Group also made significant strides in sustainability, with Tilal Al Ghaf District earning BREEAM ‘Excellent’ certification and City Centre Al Zahia receiving the Sharjah CSR Excellence Award. Emiratization efforts continued to progress, with UAE nationals now comprising over 11% of the workforce.
Financially, Majid Al Futtaim maintains a strong position with a BBB credit rating and reduced net borrowings of AED 14.6 billion, supported by a balanced capital structure and stable credit outlook.
News Source: Majid Al Futtaim
