UAE’s retail conglomerate Majid Al Futtaim (MAF) reported a revenue of 18 billion dirhams, an increase of 15 percent compared to H1 2021, driven by a steady economic recovery in both retail and leisure sectors.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 18 percent to 1.9 billion dirhams, a result of the company’s solid operational performance, driven by diversification efforts and a continued focus on cost efficiencies and scale.
The Group continues to maintain a strong balance sheet with total assets valued at around 62.9 billion dirhams. Net borrowings stood at 11.2 billion dirhams.
Alain Bejjani, CEO of MAF – Holding, said: “Our efforts have been further amplified by MENA’s steady progress in moving beyond post-pandemic recovery as we collectively turn our efforts toward economic expansion and regional prosperity.”
Operating company performance
Compared to 2021 figures, MAF – Properties’ revenue rose 51 percent to 2.4 billion dirhams, while EBITDA was up 27 percent to 1.4 billion dirhams.
Shopping mall tenant sales increased by 21 percent, while footfall increased 20 percent to 100 million visitors compared to the previous year. Meanwhile, the hotel portfolio’s revenue grew to 333 million dirhams driven by a lower base of 2021 due to capacity restrictions. RevPAR (Revenue Per Available Room) and average occupancy rates climbed 142 percent and 43 percent, respectively.
New community launches in Tilal Al Ghaf remain well-received by the market. The Alaya Beach project and Elysian Mansions, consisting of ultra-exclusive mansions and grand villas, were released in February and May, respectively, and recorded sales of over 2.4 billion dirhams, with 181 units sold by 30 June.
Majid Al Futtaim – Retail recorded a 9 percent increase in revenue, standing at 14.4 billion dirhams for 2022, while EBITDA fell 9 percent to 567 million dirhams.
The growth in retail is driven by the 268 million dirhams increase in revenue for LFL sites and growth in digital sales of 453 million dirhams. H1 2022 revenue increase in comparison to H1 2021 is due to restored consumer purchasing power and higher tourism rates – a further result of loosened COVID-19 restrictions.
Majid Al Futtaim also opened 18 new stores across its geographies. In line with the global transformation to digital retail services, the Group invested in the development of express commerce, seeing a 73 percent increase in digital sales.
Majid Al Futtaim – Leisure, Entertainment, and Cinema (LEC) registered a 56 percent increase in revenue to 784 million dirhams and a rise in EBITDA to 33 million dirhams, largely due to the lifted operating capacity restrictions. Cinemas’ admissions increased by 60 percent to 8.8 million.
Majid Al Futtaim – Lifestyle registered a 42 percent rise in revenues to 360 million dirhams and EBITDA of 3 million dirhams, mainly driven by Lululemon’s international expansion and growth in sales for CB2, Abercrombie & Fitch, LEGO, AllSaints, and Crate & Barrel.
