Dubai mall operator Majid Al Futtaim's 2024 net profit at Dh2.5 billion

Dubai: The mall and builder of residential communities, the Dubai-based Majid Al Futtaim Group’s 2024 net profit totaled Dh2.5 billion, a decline of 6% from a year ago. This came off revenues of Dh33.9 billion, down 2%.

The profit drop came from currency devaluation, anticipated tax changes and one-off items.

"However, excluding UAE corporate income tax, valuation gains and impairments, net profit was up 18%," said a statement.

It’s from the properties’ division that the Group continues to generate significant returns. Net revenue gained a hefty 25% year-on-year to Dh8.7 billion and led EBITDA to increase 16% to Dh4.2 billion.

The shopping malls – with Mall of the Emirates being the flagship – ‘continued to thrive’ with leasing occupancy at 97% and footfall ‘remaining stable from record growth in 2023 across its 29 malls’. The ‘newly optimised’ hotels portfolio continues to perform well.

It was in the retail business that the Majid Al Futtaim Group ‘faced a challenging but rewarding year’ for the brick-and-mortar business. This fetched revenues of Dh22.2 billion and EBITDA at AED 381 million.

“On one side, revenues were affected by currency devaluations in key markets and the impact of geopolitical tensions on consumer sentiment,” said a statement.

“On the other side, 2024 saw the expansion of its discounter offering Supeco, in Egypt, the introduction of Hypermax, a new 100% owned and operated grocery brand in Jordan and early progress of its turnaround programme in the UAE offer a positive outlook.”

According to Ahmed Galal Ismail, CEO of Majid Al Futtaim, "We saw encouraging progress from our retail business, where its turnaround efforts are bearing early fruit, and its digital business continues to go from strength to strength."

On the debt side, the company brought about a major reduction in net debt by Dh1 billion, which it says reflects the 'prudence' of its financial strategy. The Group generated Dh2.8 billion in free cash flow, a 270% increase over 2023 position. Total assets came to Dh68.8 billion and net debt-to-equity improved to 41%.

"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," Ismail added.

On ecommerce, the Group’s 'Carrefour Now' platform grew 30% over 2024, to account for 38% of digital revenues and delivering an EBITDA of 5.9% in 2024.