Home » Majid Al Futtaim announces 2022 financial results

Majid Al Futtaim announces 2022 financial results

by Dubaiforum

DUBAI, 6th March, 2023 (WAM) — Majid Al Futtaim today announced its operational and financial results for 2022, demonstrating resilience 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 36.3 billion and EBITDA grew by 4 percent to AED 4.1 billion, 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. The Group reported a 2 percent decrease in net profit to AED 2.4 billion and continues to maintain a strong balance sheet, with assets valued at approximately AED 66 billion, up 9 percent year-on-year, and net borrowings of AED 14.2 billion.

Ahmed Galal Ismail, Chief Executive Officer, 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.

“We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance sheet. We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region.”

Majid Al Futtaim – Properties’ revenue increased by 43 percent to AED 5.8 billion, while EBITDA grew 16 percent to AED 3 billion. 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 AED 4.4 billion during the year, whilst recognising revenue of AED 1.8 billion as construction progressed.

Majid Al Futtaim – Retail reported a 7 percent increase in revenue to AED 28 billion 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 AED 1.2 billion.

The Operating Company has expanded its presence in the region, opening 7 hypermarkets and 28 supermarkets across 9 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 AED 1.6 billion while EBITDA grew 68 percent to AED 126 million, 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.

Against the backdrop of challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group tendered its outstanding hybrid notes of US$500 million with a first call date in September 2022 and replaced them with new green hybrid notes of US$500 million with a first call date in September 2027.

The Company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both Standard & Poor’s and Fitch Ratings.

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