Property launches and retail sales drive 12% revenue growth for Majid Al Futtaim
Majid Al Futtaim, a leading pioneer in shopping malls, communities, retail, and leisure across the Middle East, Africa, and Central Asia, recently announced its operational and financial results for the year 2022. Despite global economic growth being hampered by inflation, supply chain pressures, and energy shortages, the group demonstrated resilience, posting a 12% increase in consolidated revenue to AED 36.3 billion, and a 4% growth in EBITDA to AED 4.1 billion. The rise was driven by the group’s robust operational performance, focus on customer experience, and investments in digital transformation, data analytics, and loyalty programs.
Majid Al Futtaim also registered a 2% dip in net profit to AED 2.4 billion. However, the company maintained its strong balance sheet, with assets valued at around AED 66 billion, a 9% increase from the previous year, and net borrowings of AED 14.2 billion.
Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim – Holding, praised the balanced growth achieved in 2022, despite macroeconomic challenges, and the outstanding performance of the Properties portfolio, which contributed 74% of total EBITDA. He affirmed the company’s commitment to delivering value-accretive profitable growth for shareholders and contributing to the sustainable growth and prosperity of the MENA region.
Majid Al Futtaim benefited from increasing consumer confidence reflected in higher footfall in shopping malls, hotel occupancy, and admissions at cinemas, leisure, and entertainment venues. The group continued to leverage digital opportunities to invest, innovate, and enhance its offering to meet consumers’ evolving needs.
Moreover, Majid Al Futtaim remains committed to positive and sustainable economic and societal change in the region. The group is on track to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025. In September 2022, Majid Al Futtaim signed its second Sustainability-Linked Loan (SLL), a USD 1.25 billion Revolving Credit Facility (RCF) tied to the group’s environmental, social, and governance (ESG) related targets, reinforcing its commitment to achieving its ESG ambitions.
Additionally, the group maintained its ‘Green Star’ status from the Global Real Estate Sustainability Benchmark (GRESB) for implementing outstanding sustainability practices, strengthened by the progress made against its 2040 net positive commitment and greenhouse gas emissions validated this year by the Science-Based Targets initiative (SBTi). The group also maintained its low risk ESG rating by Sustainalytics.
The sustained upturn in consumer confidence also saw retail trends, such as consumer demand for digital and omnichannel experiences, accelerate. Majid Al Futtaim continues to be well-positioned to leverage digital opportunities, invest, innovate, and enhance its offerings to meet consumers’ evolving wants and needs.
Majid Al Futtaim’s commitment to sustainability was also reflected in its flagship shopping centres, Mall of the Emirates and Mall of Oman, receiving LEED Platinum certification, adding to the company’s green certified properties that span four million square meters.
Despite macroeconomic challenges, Majid Al Futtaim registered impressive growth in 2022, driven by its solid operational performance, focus on customer experience, and investments in digital transformation. The group’s commitment to sustainability, ESG targets, and positive and sustainable economic and societal change further reinforces its position as a leader in the MENA region.
