Majid Al Futtaim, a leading Dubai-based conglomerate, recently reported strong financial results for the first half (H1) of 2024, with a net profit of Dh1.6 billion and revenue of Dh16.7 billion. Despite facing macroeconomic challenges such as geopolitical instability and currency devaluations in the region, the group delivered a stable performance, supported by its diversified portfolio and strong balance sheet.
The group’s assets grew by two per cent year-on-year, with the retail arm experiencing a six per cent revenue decline to Dh16.7 billion. However, at constant currency rates, the group’s revenue only decreased by three per cent. The CEO of Majid Al Futtaim – Holding, Ahmed Galal Ismail, highlighted the strength of the diversified portfolio, with properties delivering a record performance and the lifestyle company experiencing positive demand. The ongoing transformation of the retail digital business has also shown progress.
The group’s property division saw a nine per cent increase in revenue, primarily driven by residential real estate developments and successful sales from UAE-based shopping malls. The group’s shopping malls registered a revenue growth of eight per cent, with hotels reporting an 18 per cent increase in revenue per available room. The group also continued to drive sales across its residential community portfolio, booking Dh5.9 billion in gross sales in the first half of the year.
The cinemas portfolio registered a three per cent increase in admissions, contributing to a strong Ebitda growth of 103 per cent. The lifestyle business reported a 23 per cent increase in revenue. However, the retail arm saw an 11 per cent revenue decline and a 47 per cent Ebitda decline, attributed to consumer sentiment following geopolitical conflicts in the region and currency devaluation. Despite these challenges, the group maintains a strong financial and liquidity position, with net borrowings decreasing to Dh14.6 billion.
In conclusion, Majid Al Futtaim’s diversified portfolio and strategic initiatives have helped mitigate the impact of broader economic challenges in the region. By focusing on key areas such as properties, retail digital businesses, and residential developments, the group has been able to deliver strong financial results and maintain a solid financial and liquidity position. With a continued focus on market leadership and customer-centricity, the group is well-positioned for future growth and success in the ever-changing business landscape.
