Dubai's Majid Al Futtaim records 74% profit surge in H1 2023
Majid Al Futtaim, a multinational retailer with operations in the Middle East, Africa, and Central Asia, increased its net profit by 74% in the first half of 2023. The company's net profit was 1.7 billion dirhams ($463 million), up from the previous year's similar period. Its headquarters are located in Dubai.
Remarkable Expansion in Properties Segment
The privately-held conglomerate disclosed that revenues for the same period experienced a solid uptick of 5%, reaching AED 18.9 billion. Within the group, Majid Al Futtaim Properties notably achieved a substantial 39% growth in net revenue, totaling AED 3.4 billion.
Elevated EBITDA Performance
Additionally, the segment experienced a 22% increase in EBITDA, amounting to AED 1.7 billion. This success was attributed to the bolstered footfall in malls, tenant sales, and the expansion of the residential arm of the business.
Majid Al Futtaim's Lifestyle and Entertainment divisions also showcased robust growth, registering impressive increments of 31% and 4%, respectively. However, within the group's portfolio, Majid Al Futtaim Retail experienced a slight dip of 2% in revenue. This was largely attributed to currency devaluations in key markets such as Egypt, Pakistan, Kenya, and Lebanon.
Notably, Majid Al Futtaim possesses ownership of an extensive portfolio, boasting 29 shopping malls situated in five different countries, including prominent markets like the UAE and Egypt. Moreover, the group successfully manages a network of over 460 retail outlets, cinemas, leisure brands, fashion stores, properties, and hotels. This diversified business landscape has contributed to the conglomerate's robust performance in a challenging economic environment.