Majid Al Futtaim posts 74% jump in H1 profit

Group records 5% rise in consolidated revenue to Dh18.9 billion

Follow us on Google News-khaleejtimes

Shoppers at Deira City Centre, a Majid Al Futtaim shopping mall. — KT file
Shoppers at Deira City Centre, a Majid Al Futtaim shopping mall. — KT file

Issac John

Published: Tue 22 Aug 2023, 6:34 PM

Last updated: Tue 22 Aug 2023, 6:35 PM

Majid Al Futtaim, a leading shopping mall, communities, retail, and leisure group in the UAE, has announced a 74 per cent year-on-year jump in net profit to Dh1.7 billion.

During the first half of the year, the group recorded a 5.0 per cent increase in consolidated revenue to Dh18.9 billion, and Ebitda (earnings before interests, tax, depreciation, and amortisation) growth of 13 per cent year-on-year to Dh2.1 billion, “demonstrating the success of strategic initiatives to drive operational efficiency and profitability over the first half.”

Ahmed Galal Ismail, chief executive officer of Majid Al Futtaim – Holding, said the conglomerate “is successfully balancing strategic growth with profitable and responsible execution.”

The group’s positive performance was underpinned by focused efforts to drive operational excellence and was further buoyed by the UAE’s thriving economy. The group continues to maintain a healthy balance sheet with assets valued at approximately Dh68 billion, the company said in a statement.

“Our efforts to drive defined business objectives across our portfolio with a renewed focus on operational excellence and productivity are delivering sustainable, profitable growth and value to our stakeholders,” said Ismail.

“The economic buoyancy of the UAE in conjunction with our internal focus to unlock the inherent power of our ecosystem, has enabled the Group to deliver a solid half-year performance. Majid Al Futtaim will continue to evolve, anchoring strategic choices in value-creation that support the evolving needs of our customers, colleagues, and communities across the region.”

Majid Al Futtaim’s properties unit delivered 39 per cent net revenue growth to Dh 3.4 billion and a 22 per cent Ebitda increase to Dh1.7 billion, aided by a rise in mall footfall, tenant sales, and scale-up of the residential business. The retail unit’s digital sales revenue increased 13 per cent over the first half of the year while the entertainment division expanded its Global Snow business, opening Snow Abu Dhabi, the capital’s first indoor snow park and the Group’s fourth indoor snow park.

In the first half, the group issued $500 million Green Sukuk underscoring its commitment to sustainable financing opportunities

More news from Business