Majid Al Futtaim, a prominent Dubai-based conglomerate, announced on Tuesday a net profit of Dh1.6 billion and revenue of Dh16.7 billion for the first half of 2024. The company, known for its pioneering work in shopping malls, communities, retail, and leisure, highlighted its stable performance, bolstered by a diversified portfolio and a robust balance sheet, despite facing macroeconomic challenges due to geopolitical instability and regional currency devaluations.
The group's assets increased by two percent compared to the previous year, but its retail division saw a six percent drop in revenue to Dh16.7 billion, and Ebitda decreased by two percent to Dh2.1 billion. Adjusted for currency fluctuations, the group's revenue only fell by three percent, with Ebitda and net profit showing a slight increase of one percent.
Ahmed Galal Ismail, CEO of Majid Al Futtaim – Holding, emphasized the resilience of their diversified portfolio, safeguarding overall profitability amidst challenging operational environments. Majid Al Futtaim Properties achieved a record performance, fueled by the success of UAE-based shopping malls and robust consumer confidence in developments like Tilal Al Ghaf and the newly introduced Ghaf Woods.
The property division experienced a nine percent rise in revenue to Dh3.7 billion, mainly due to the Tilal al Ghaf development and increased revenues from UAE shopping malls. Ebitda for this sector climbed by 11 percent to Dh1.9 billion. Shopping malls saw an eight percent increase in revenue and maintained a high occupancy rate of 96 percent. Hotel revenue per available room (RevPAR) increased by 18 percent, reflecting Dubai's growing status as a tourism destination.
In June, Majid Al Futtaim launched Ghaf Woods, a unique forest-living community in Dubai, which quickly sold out its initial phase of 1,000 units. The cinemas portfolio saw a three percent increase in admissions, contributing to a 103 percent growth in Ebitda. The lifestyle business reported a 23 percent increase in revenue to Dh584 million, while retail revenue declined by 11 percent to Dh11.6 billion and Ebitda fell by 47 percent to Dh278 million, impacted by reduced consumer spending due to regional geopolitical conflicts and currency devaluations.
Majid Al Futtaim maintains a strong financial and liquidity position, supported by a balanced capital structure. Net borrowings were reduced to Dh14.6 billion, with most debt maturing after 2027.
