The company’s turnover jumped 15% to reach 18 billion dirhams in the first half of 2022.
A strong customer-focused strategy, backed by unparalleled data and analytics capabilities, has enabled Majid Al Futtaim to achieve sustained growth through the first half of 2022, said Alain Bejjani, Managing Director of Majid Al Futtaim on Wednesday. – Holding, as the company announced its audit reviewed operational and financial operations. H1 2022 results.
“Our efforts have been further amplified by Mena’s steady progress in moving beyond post-pandemic recovery as we collectively turn our efforts towards economic expansion and regional prosperity,” Bejjani said.
The leading pioneer of shopping malls, communities, retail and leisure in the Middle East, Africa and Central Asia recorded a turnover of 18 billion dirhams, an increase of 15% compared to in the first half of 2021.
EBITDA increased 18% to MAD 1.9 billion, the result of the company’s strong operating performance, driven by diversification efforts and a continued focus on profitability and scale. The group continues to maintain a solid balance sheet with total assets valued at approximately 62.9 billion dirhams. Net debt stood at 11.2 billion dirhams.
Alain Bejjani, Managing Director of Majid Al Futtaim – Holding.
“The growth recorded in the first half of the year is encouraging. Although our region is not immune to rising global inflation and supply chain pressures, Majid Al Futtaim remains optimistic about to the broader economic outlook. Our prudent financial discipline and strong governance ensure our resilience in the face of any immediate impact while ensuring that we are well positioned to remain focused on sustainable value creation,” Bejjani added.
The group continues to benefit from a sustained rebound in consumer confidence after the pandemic, as evidenced by the increase in shopping mall footfall, hotel occupancy rates and entry to its cinemas and venues. leisure and entertainment.
Retail trends, such as consumer demand for digital and omnichannel experiences, continued to accelerate. The group continues to be well positioned to capitalize on digital opportunities to invest, innovate and elevate its offering to meet evolving consumer wants and needs.
Majid Al Futtaim continues to take the necessary steps to mitigate any immediate inflationary impact resulting from the supply chain strain while focusing on its long-term strategy of creating sustainable value.
Compared to 2021 figures, Majid Al Futtaim – Properties’ turnover increased by 51% to reach MAD 2.4 billion, while EBITDA increased by 27% to reach MAD 1.4 billion .
Shopping center tenant sales increased 21%, while footfall increased 20% to 100 million visitors from a year earlier. Meanwhile, hotel portfolio revenue reached Dh333m, driven by a lower 2021 base due to capacity restrictions. RevPAR (revenue per available room) and average occupancy rates increased by 142% and 43% respectively.
The launches of new communities in Tilal Al Ghaf remain well received by the market. The Alaya Beach and Elysian Mansions project, made up of ultra-exclusive mansions and grand villas, were launched in February and May respectively and recorded sales of more than Dh2.4 billion, with 181 units sold as of June 30.
Majid Al Futtaim – Retail recorded a 9% increase in revenue to MAD 14.4 billion for 2022, while EBITDA fell 9% to MAD 567 million.
Retail growth is driven by Dh268 million increase in LFL site revenue and digital sales growth of Dh453 million. The increase in revenues in the first half of 2022 compared to the first half of 2021 is due to the restoration of consumer purchasing power and the increase in tourism rates – a further result of the easing of restrictions related to Covid-19.
Continuing the expansion of its international footprint, Majid Al Futtaim also opened 18 new stores across its geographies. In line with the global transformation towards digital retail services, the Group invested in the development of express commerce, recording a 73% increase in digital sales. Additionally, Majid Al Futtaim Retail opened the UAE’s first BIO store in January, featuring the retailer’s first-ever cafe and in-store hydroponic farm.
Leisure, Shows and Cinemas (LEC)
Majid Al Futtaim – LEC recorded a 56% increase in revenue to Dh784 million and an increase in EBITDA to Dh33 million, mainly due to the lifting of operating capacity restrictions.
Cinema admissions increased by 60% to 8.8 million. The strong results are the result of a better first quarter revenue performance and a better than expected performance of new content releases.
Way of life
Majid Al Futtaim – Lifestyle reported a 42% rise in revenue to Dh360m and EBITDA of Dh3m, mainly driven by Lululemon’s international expansion and sales growth at CB2, Abercrombie & Fitch , LEGO, AllSaints and Crate & Barrel.
In its quest for economic resilience in the second half of 2022, Majid Al Futtaim will continue to support sustainable economic development while adhering to a prudent financial management strategy.
Majid Al Futtaim is fully committed to the markets in which it operates, striving to deliver an exceptional experience not only to its customers, but also to tenants, employees and its key stakeholders. The company will also consider investing in enterprise initiatives including digital transformation, data and analytics, customer experience and loyalty programs.
Majid Futtaim Properties continues to make progress on its pipeline development projects, including the redevelopment of the Mall of the Emirates and the Mall of Saudi.
Majid Al Futtaim – Retail will reinforce its leading position in the main markets and continue to invest and expand its omnichannel presence, improve its network of stores and develop its food and health activities to meet the changing needs of consumers. .
Majid Al Futtaim’s strong balance sheet has enabled it to maintain a solid financial and liquidity position through the steady recovery of market conditions. The company’s debt maturity profile remains light, with no significant debt maturities before May 2024.
Despite challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group offered its outstanding $500 million hybrid bonds with the first redemption date in September 2022 and replaced them with new $500 million green hybrid bonds. million with a first repayment date in September. 2027. This was the Group’s first green format hybrid transaction and Mena’s first green corporate hybrid.
For the 11th consecutive year, the company’s credit rating has been maintained at “BBB” with a stable outlook by S&P and Fitch Ratings. The ratings reiterate the company’s credit qualities, the resilience of its business model, the quality of its assets, its strong corporate governance and prudent financial management.