UAE – Mubasher: Majid Al Futtaim logged an annual rise of 1% in consolidated revenue to AED 34.50 billion as of 31 December 2023, according to a press release.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped by 12% year-on-year (YoY) to AED 4.60 billion in 2023.
The group’s total assets increased to AED 69.70 billion last year from AED 66.10 billion in January-December 2022.
Ahmed Galal Ismail, CEO of Majid Al Futtaim, said: “The strong results from our Properties business, robust growth from our Entertainment and Lifestyle businesses, and promising delivery from our Majid Al Futtaim Retail digital transformation, which has delivered a double-digit increase in sales revenue, underpin the strength inherent to our diversified portfolio and the 43,000 employees that work tirelessly to bring our late Founder’s vision to life.
Ismail added: “While we are not immune to the impact of the regional macroeconomic challenges, including currency devaluation in Egypt, Lebanon, Pakistan and Kenya, and the deeply concerning geopolitical events that are shaping market dynamics and consumer behaviours, we are confident in our ability to navigate the path ahead while delivering value to our stakeholders in 2024 and beyond.”
Properties
The revenues witnessed a 20% YoY hike in 2023 to AED 6.90 billion, while the EBITDA surged by 21% YoY to AED 3.60 billion.
Furthermore, the Shopping Malls business registered tenant sales of AED 30 billion, marking an increase in overall occupancy to 96% and an 8% rise in footfall, with 232 million visitors.
Majid Al Futtaim Hotels posted an 82% occupancy rate on hotel rooms in 2023. Hotel revenues grew by 4% to AED 700 million in 2023, with RevPAR growing by 5% compared to 2022.
The group’s flagship residential community, Tilal Al Ghaf, recorded a gross sales value of AED 4.70 billion.
Retail
Revenue declined by 4% in 2023 on a restated basis to AED 24.70 billion, impacted primarily by currency devaluations in Egypt, Pakistan, Kenya, and Lebanon.
EBITDA fell by 15% YoY to AED 1.10 billion in 2023. However, at a constant currency rate, revenue grew by 4% and EBITDA retreated by 4%.
Entertainment
During the January-December 2023 period, the revenue climbed by 7% YoY to AED 1.80 billion, which reflected positively on EBITDA, making it hike by 53% to AED 193 million.
Lifestyle
Revenue soared by 29% and crossed the AED 1 billion mark for the first time in 2023, backed by a 20% YoY footfall increase through the 70 stores across the MENA region.
The portfolio of stores in the Middle East generated AED 901 million in revenue and AED 104 million in digital sales.
EBITDA recorded an annual leap of 168% to AED 67 million in 2023, compared to AED 25 million.
