Dubai: The mall and community developer Majid Al Futtaim brought in Dh18 billion in first-half 2022 revenues, with the property side of the business contributing Dh2.4 billion from a 51 per cent year-on-year gain. The retail division still provides the bulk of the top-line with Dh14.4 billion, up 9 per cent.
Last year same time, the Group, which operates an extensive Middle East presence, had revenues of Dh15.6 billion, while the EBITDA totaled Dh1.6 billion. This year, the group-wide H1 EBITDA is Dh1.9 billion.
The retail division still provides the bulk of the top-line with Dh14.4 billion, up 9 per cent. But in retail, the EBITDA dropped by 9 per cent to Dh567 million, an indication of the tough trading environment regional markets are going through with inflation biting and consumers being cautious.
Even then, at the group's malls, tenant sales increased 21 per cent, while footfall increased 20 per cent to 100 million visitors compared to the previous year. The hotel portfolio's top-line in first six months added up to Dh333 million 'driven by a lower base of 2021 due to capacity restrictions'. RevPAR (Revenue Per Available Room) and average occupancy rates were higher by 142 per cent and 43 per cent, respectively.
The property business cashed in an EBITDA of Dh1.4 billion.
The leisure, entertainment and cinemas billed Dh784 million in revenues during the period, which is a 56 per cent increase. The cinema admissions were a robust 8.8 million from a 60 per cent year-on-year gain.
The lifestyle division netted Dh360 million in revenues, brought on by the athleisure brand Lululemon’s international expansion and sales gains for Abercrombie & Fitch, Lego and Crate & Barrel, among others.
100 m
Number of visitors who turned up at Majid Al Futtaim Group owned malls in the first six months of 2022
“While our region is not immune to building global inflation and supply chain pressures, Majid Al Futtaim remains optimistic towards the broader economic outlook,” said Alain Bejjani, CEO of Majid Al Futtaim – Holding. “Our prudent financial discipline and strong governance ensures our resilience in the face of any immediate impact while ensuring we are well-positioned to remain focused on sustainable value creation.”
Digital portfolio
The Dubai headquartered group remains 'well-placed to capitalise on digital opportunities to invest, innovate and elevate its offering to meet evolving consumer wants'. This included development of ‘express’ commerce, and there has seen a 73 per cent increase in digital sales. On the physical side, Majid Al Futtaim opened 18 new stores across geographies. There was also a ‘BIO’ store, featuring a café and an in-store hydroponic farm.
"Majid Al Futtaim continues to take the necessary steps to mitigate any immediate inflationary impact stemming from supply chain strain while focusing on its long-term strategy of sustainable value creation," the statement added. "In its pursuit of being economically resilient during the second-half of 2022, Majid Al Futtaim will continue to support sustainable economic development while adhering to a prudent financial management strategy.
"The business will also look at investing on corporate initiatives including digital transformation, data and analytics, customer experience and loyalty programmes."
"Majid Al Futtaim’s robust balance-sheet has allowed it to maintain a strong financial and liquidity position thanks to the steadily recovering market conditions," the company said. "The company’s debt maturity profile remains light with no material debt maturity until May 2024."
