Dubai: The Dubai headquartered conglomerate Majid Al Futtaim recorded consolidated revenues of Dh36.3 billion, up 12 per cent on 2021, with property launches and revenues from its malls and retail divisions driving the top-line.
Net profit declined 2 per cent to Dh2.4 billion, while its asset base is valued at Dh66 billion, up 9 per cent. The property portfolio bolsted by the launch of 'islands' at the Tilal Al Ghaf development in Dubai also helped negate some of the headwinds.
Across the Group portfolio, shopping mall footfall increased 16 per cent to 212 million visitors in 2022, while tenant sales grew 11 per cent.
"Overall, Majid Al Futtaim delivered balanced growth through 2022," said Ahmed Galal Ismail, CEO, Majid Al Futtaim – Holding. "Contributions from across our portfolio enabled the Group to achieve double digit revenue growth despite the ongoing macroeconomic challenges. The potential impact of these headwinds has been further lessened by the outstanding performance of our properties portfolio, which has contributed 74 per cent of total EBITDA."
Future-proof the business
Fast-track further expansion in 'high growth potential markets' such as Saudi Arabia and Egypt' will continue, as well as in the UAE 'amid a resurgence in consumer confidence'. Another focus is create The Group will also continue expansion in its omni-channels, to 'ensure the business is future-proof and is delivering on the changing customer needs'.
Offplan weighs in
Majid Al Futtaim - Properties' revenue gained a substantial 43 per cent to Dh5.8 billion, while EBITDA grew 16 per cent to Dh3 billion. "This was driven by robust performance across the hotels and communities’ businesses and bolstered by the continued strong recovery across shopping malls, including the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021," the company said.
Its ongoing Dubai project, Tilal Al Ghaf, recorded gross sales value of Dh4.4 billion during the year, while recognising revenue of Dh1.8 billion as construction progressed.
Majid Al Futtaim went through multiple refinancing actions through 2022, ensuring the Group’s 'debt maturity profile remains balanced, with a mix of capital markets and bank financing'. In June 2022, it tendered its outstanding hybrid notes of $500 million with a first call date in September 2022 and replaced them with new 'green' hybrid notes of $500 million with a first call date in September 2027. This was the Group's first hybrid transaction in the 'green format and the first green hybrid bond issued by a company in the MENA region'.
"We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance-sheet," said Ismail. "We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region."