Majid Al Futtaim reports 12% rise in revenue in 2022, visitors to malls rise by 16%

March 7, 2023 775

Majid Al Futtaim Reports Strong 2022 Financial Results with 12% Revenue Growth

Majid Al Futtaim has announced its audited operational and financial results for 2022, showcasing a 12% increase in revenue to Dhs36.3bn. The company’s EBITDA grew by 4% to Dhs4.1bn, fueled by strong operational performance, digital transformation investments, and loyalty programs.

Key Financial Highlights

  • Retail digital sales surged by 51% YoY, driving overall 7% revenue growth to Dhs28bn.
  • Properties revenue increased by 43% to Dhs5.8bn, with shopping mall footfall rising 16% to 212 million visitors.
  • Hotels division revenue jumped 48% to Dhs671m, with RevPAR up by 50%.
  • Entertainment revenue climbed 23% to Dhs1.6bn, supported by easing of restrictions and major movie releases.
  • Lifestyle revenue surged 38% to Dhs801m, with EBITDA growth of 317%.

Despite this strong performance, net profit declined by 2% to Dhs2.4bn, while assets increased by 9% to Dhs66bn, maintaining a healthy financial position.

Commitment to ESG & Sustainability

Majid Al Futtaim is progressing towards its 2040 net-positive water and energy goals and aims to eliminate single-use plastics by 2025. The Mall of the Emirates and Mall of Oman have achieved LEED Platinum certification, reinforcing the company’s commitment to sustainability.

The company also secured a $1.25bn Sustainability-Linked Loan (SLL) and retained its "Green Star" rating from the Global Real Estate Sustainability Benchmark.

Market Expansion & Investments

Majid Al Futtaim continues expanding in Saudi Arabia, Egypt, and the UAE with:

  • New hypermarkets & supermarkets – seven hypermarkets and 28 supermarkets opened in nine countries, totaling over 450 stores.
  • Entertainment growth – secured distribution rights for Warner Bros. and Universal in the MENA region.
  • Mall of the Metaverse – the first virtual shopping mall in Dubai is under development.

Financial Stability & Future Outlook

The company successfully refinanced hybrid bonds, issuing the MENA region’s first green hybrid bond worth $500m. Standard & Poor’s and Fitch maintain its ‘BBB’ credit rating with a stable outlook.

CEO Ahmed Galal Ismail stated:

“Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the Group to achieve double-digit revenue growth despite the ongoing macroeconomic challenges.”