Majid Al Futtaim, a leading shopping malls, communities, retail, and leisure pioneer across the Middle East, Africa, and Central Asia, has announced its full-year 2024 financial results, showcasing resilience against complex macroeconomic factors while delivering sustained growth in key business areas across its portfolio.
Performance for the year ending 31 December 2024, demonstrates the strength of the Group’s diversified business model, reporting consolidated revenue of AED 33.9 billion, down 2 percent, while EBITDA grew 1 percent at AED 4.6 billion, through growth in key business areas across the portfolio and prudent financial discipline, according to the company.
Despite challenging circumstances, the Group achieved a net profit of AED 2.5 billion, down 6 percent year on year, a result of currency devaluation, anticipated tax changes and one-off items.
However, excluding UAE corporate income tax, valuation gains and impairments, net profit was up 18 percent. While on a constant currency basis, EBITDA increased 3 percent, and revenue grew by 1 percent.
Read: How retailers in UAE, Saudi Arabia are meeting evolving consumer expectations
Within the Group’s varied operating companies, revenues grew significantly in key divisions including Properties, Retail Digital and Lifestyle, while overall revenue in the UAE grew by 7 percent, offsetting challenges in other operating companies and economic headwinds in certain markets, the company said.
The Group generated AED 2.8 billion in free cash flow, a 270 percent increase over the previous year and reduced net debt by AED 1 billion, underscoring the prudence of its financial strategy and focus on long-term value creation. Total assets stood at AED 68.8 billion and net debt to equity improved to 41 percent.
Ahmed Galal Ismail, CEO, Majid Al Futtaim, said: ‘‘2024 was a year defined by extraordinary achievement for Majid Al Futtaim. Despite complex circumstances including macroeconomic factors, geopolitical headwinds and higher corporate tax costs, the Group delivered a strong financial performance. Net profit before UAE corporate income tax, valuation gains and impairments was up 18 percent reaching AED 2.04 billion and we closed out the year with free cash flow up almost four-fold, reinforcing the strength of our business model, our ability to adapt, and our unwavering focus on long-term value creation.”
“2024 has also marked a year of significant achievement in delivering on our commitment to nurturing local talent, with our Emiratization levels reaching a record high of 13 percent and reflecting our ability to create rewarding career paths and bespoke learning opportunities for the region’s future leaders,” the CEO added.
Operating company performance
The Group’s Properties business achieved a strong performance in 2024, with net revenue growing by 25 percent year-on-year to AED 8.7 billion and EBITDA increasing by 16 percent to AED 4.2 billion.
Majid Al Futtaim’s shopping malls have continued to thrive with leasing occupancy hitting 97 percent and footfall remaining stable from record growth in 2023 across its 29 malls. The newly optimized Hotels portfolio continued to perform well.
Further key contributors included the strong performance of the newly launched Ghaf Woods residential development, where Phases 1 and 2 were fully sold within seven days. Tilal Al Ghaf set a new record for luxury living with the release of additional phases which demonstrates the market’s appetite for innovative, sustainable, and community-centric living space. Total gross sales for 2024 reached AED 7.9 billion, demonstrating 30 percent growth year on year.
Majid Al Futtaim’s Retail business faced a challenging but rewarding year for its brick-and-mortar business which resulted in revenue at AED 22.2 billion and EBITDA at AED 381 million.
On the digital side, the business achieved significant progress in several strategic areas. Online revenue grew by 14 percent to AED 2.7 billion as the Group continued to prioritize its omnichannel offering to meet evolving consumer preferences.
The launch of Precision Media, the Group’s first digitally native business leverages AI-powered technology to transform how brands engage with customers. As eCommerce increasingly shifts toward quick commerce, the Group’s pivot into this space has seen the Carrefour Now platform grow by 30 percent over the past 12 months to account for 38 percent of digital revenues and delivering an EBITDA of 5.9 percent in 2024.
The Lifestyle business delivered strong growth, with revenue rising 26 percent to AED 1.3 billion and EBITDA increasing 43 percent to AED 96 million compared to the previous year.
Its Entertainment business reported net revenue of AED 1.7 billion and EBITDA at AED 164 million. With regional cinema markets continuing to recover, VOX Cinemas saw a 2 percent increase in admissions, supported by growing consumer interest in premium experiences.
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