UAE News Today : Business

Majid Al Futtaim’s diverse portfolio generates strong financial results for fiscal 2023


Majid Al Futtaim (“the Group”), a leading pioneer in shopping centres, communities, retail and leisure in the Middle East, Africa and Central Asia, today announced its full year 2023 operating and financial results.

The company demonstrated resilient financial performance, reflecting its strategic approach to its diverse business portfolio and the strength of its core operations. At the end of 2023, Majid Al Futtaim recorded a 1% increase in consolidated revenue to AED 34.5 billion, while EBITDA increased 12% to AED 4.6 billion. The Group maintained sustained growth in key performance metrics, underlining its ability to generate healthy cash flows and maintained a healthy balance sheet. The Group’s total assets increased to AED 69.7 billion, up from AED 66.1 billion in 2022.

Within 2023, the Group carried out a reassessment of its accounting policy with respect to Majid Al Futtaim Retail Supplier benefits. Consequently, this revenue is now recognized as a credit against cost of sales rather than classified as revenue. This update has no impact on the Group’s net profit or EBITDA.

When commenting on the results, Ahmed Galal Ismail, CEO, Majid Al Futtaimsaying:

“Majid Al Futtaim’s financial performance in 2023 reflects our sustained focus on delivering profitable and value-creating growth. The strong results of our Property business, the strong growth of our Entertainment and Lifestyle businesses, and the promising delivery of our digital transformation Majid Al Futtaim Retail, which has generated a double-digit increase in sales revenue, support the strength inherent in our diversified portfolio and the 43,000 employees who work tirelessly to realize our late Founder’s vision.

“While we are not immune to the impact of regional macroeconomic challenges, including the devaluation of currencies in Egypt, Lebanon, Pakistan and Kenya, and deeply worrying geopolitical developments that are shaping market dynamics and consumer behaviors , we trust in our ability to navigate. the way forward as we deliver value to our stakeholders in 2024 and beyond.”

Company Operating Performance

Majid Al Futtaim – Properties

In 2023, revenue grew 20% year-on-year to AED 6.9 billion and EBITDA increased 21% to AED 3.6 billion. This success was due to record footfall and higher occupancy rates benefiting UAE-based shopping centres, as well as a strong performance from the Tilal Al Ghaf development.

Key business performance indicators maintained a positive trajectory: the shopping center business recorded record tenant sales of AED 30 billion, an increase in overall occupancy to 96% and an 8% increase in traffic, welcoming 232 millions of visitors. Additionally, Majid Al Futtaim Hotels recorded an occupancy rate of 82% in hotel rooms in 2023. The hotel’s revenue increased by 4% to AED 700 million in 2023, and RevPAR grew by 5% compared to 2022. These results were driven by strong tourism in Dubai. , and the city welcomed 15.37 million overnight international visitors in the first 11 months of 2023, a 20% increase in visitor numbers year-over-year. Additionally, the Group’s flagship residential community, Tilal Al Ghaf, recorded a gross sales value of AED 4.7 billion on the back of continued strong demand from the luxury and ultra-luxury segments in 2023.

Majid Al Futtaim – Retail

Revenue decreased 4% on a restated basis to AED 24.7 billion, impacted primarily by currency devaluations in Egypt, Pakistan, Kenya and Lebanon, and a shift in consumer sentiment related to geopolitical tensions in the region. EBITDA decreased 15% to AED 1.1 billion year-on-year. However, at constant exchange rates, revenue grew 4% and EBITDA fell 4%. The group’s digital retail business saw significant growth with revenue increasing by 17% to AED 2.6 billion, contributing to almost 10% of Majid Al Futtaim Retail’s revenue in 2023. Additionally, Majid Al Futtaim Retail opened twenty stores throughout the region, including five low-cost Supecos. , hybrid stores in Egypt in 2023.

Majid Al Futtaim – Entertainment

Revenue grew 7% to AED 1.8 billion as the cinema business continues to recover from delays and adjustments to its content portfolio. This was positively reflected in EBITDA, which increased by 53% to AED 193 million in 2023. Additionally, the entertainment business has further expanded its regional presence in 2023 with the opening of Snow Abu Dhabi in June 2023, the the capital’s first covered snow park, and the Group’s fourth snow destination.

Majid Al Futtaim – Lifestyle

Revenue increased by 29% and surpassed the AED billion mark for the first time, driven by a 20% year-on-year increase in footfall across all 70 stores across the MENA region. Representing a major milestone for the segment, the Middle East store portfolio generated AED 901 million in revenue, an increase of 24%, and AED 104 million in digital sales in 2023. Additionally, EBITDA recorded a strong increase 168% to AED. 67 million in 2023, up from AED 25 million the previous year.

Throughout 2023, the lifestyle business has expanded and expanded its offering, successfully opening the newly designed store in Dubai for Italian luxury furniture manufacturer Poltrona Frau in May. The opening complements Lifestyle’s existing portfolio of 13 leading franchise brands and two local brands.

Progress in Sustainable Impact

Majid Al Futtaim has continued to set the tone for sustainable growth in the region, launching a new phase of its Dare today, change tomorrow sustainability strategy in 2023. Committed to achieving Net Positive status in carbon and water by 2040, the company has also made significant progress in reducing the consumption of single-use plastic bags by 87% in the UAE, thanks to part to the introduction of supportive government policies. .

As an associate partner of Pathway at COP28, the Group made progress in advancing its ESG agenda in 2023. Majid Al Futtaim Retail, along with 16 Fast-Moving Consumer Goods (FMCG) partners, committed to working with its suppliers to reduce Scope 3 emissions, in addition to implementing sustainable packaging and offering healthier and more sustainable products.

Majid Al Futtaim Retail launched the ‘Choose better’ program at COP28 to empower customers to make healthier, more sustainable choices that protect the planet and support local communities. As a regional leader in sustainable financing, Majid Al Futtaim The issuance of a $500 million green sukuk in June 2023 underlines its dedication to environmentally responsible investments, marking its fourth foray into green capital markets. This move aligns with its ambitious ESG goals and 2019 green finance framework. Highlighting its achievements in sustainable operations, in 2023, VOX Cinemas, City Center Mirdif became the first cinema to receive the US’s highest sustainability award. Green Building Council (USGBC), an international standard for building design and environmental management, reinforcing Majid Al. Futtaim’s position at the forefront of environmental management. The Group has also maintained its low risk ESG rating granted by Sustainalytics.


Majid Al Futtaim continues to maintain a strong financial and liquidity position, supported by a balanced strategy, covering both capital markets and bank lending.

The Group’s net debt increased to AED 15 billion, mainly due to investments in working capital. Besides, Majid Al Futtaim has maintained its ‘BBB’ credit rating with a stable outlook since Standard & Poor’s and Fitch ratings.

News source: Majid Al Futtaim


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