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Majid Al Futtaim Records Double-Digital Revenue Growth Despite 'Macroeconomic Challenges'

By Robert McHugh
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Majid Al Futtaim Records Double-Digital Revenue Growth Despite 'Macroeconomic Challenges'

Majid Al Futtaim has released its financial results for 2022, which show consolidated revenue growth of 12% year-on-year to AED 36.3 billion (€9.29 billion) and EBITDA increasing by 4% year-on-year to AED 4.1 billion (€1 billion).

The group reported a 2% decrease in net profit, to AED 2.4 billion (€614 million), with assets valued at approximately AED 66 billion (€16.8 billion), up 9% year-on-year, and net borrowings of AED 14.2 billion (€3.6 billion).

Digital Transformation

The Dubai-based retailer claims its performance was driven by focus on improving the customer experience through investments in digital transformation, data analytics and loyalty programmes.

Majid Al Futtaim is one of the largest lifestyle and leisure conglomerates in the Middle East, with its own shopping malls, communities, retail and leisure centres across the Middle East, Africa, and Central Asia.

The retailer’s online sales continued its growth trajectory, with revenue increasing by 51% year-on-year. The report shows visitor numbers to shopping malls increased by 16%, while tenant sales rose by 11% year-on-year.

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'Macroeconomic Challenges'

"Overall, Majid Al Futtaim delivered balanced growth through 2022," said Ahmed Galal Ismail, chief executive officer, Majid Al Futtaim – Holding.

"Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the group to achieve double digital revenue growth despite the ongoing macroeconomic challenges," Ismail added.

"The potential impact of these headwinds has been further lessened by the outstanding performance of our Properties portfolio, which has contributed 74% of total EBITDA."

'Mall Of The Metaverse'

In February, Majid Al Futtaim announced the launch of 'Mall of the Metaverse', a virtual retail and entertainment destination, at the World Government Summit in Dubai.

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Mall of the Metaverse will be open to mall visitors who are seeking increased digital experiences across retail, entertainment and leisure offerings, Majid Al Futtaim said.

Majid Al Futtaim Retail arm boasts a portfolio of around 450 stores, holding the franchise for the Carrefour brand in 30 countries, and operating the banner in 16.

Read More: Majid Al Futtaim Launches New Payment Solution SHAREPay

© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.

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