UAE’s Majid Al Futtaim posts 2024 results, reports Dhs33.9bn in revenue

Majid Al Futtaim has reported its financial results for 2024.

The company said it achieved a consolidated revenue of Dhs33.9bn, down 2 per cent, while EBITDA grew 1 per cent at Dhs4.6bn, through growth in key business areas across the portfolio and prudent financial discipline.

Despite tough circumstances, the group achieved a net profit of Dhs2.5bn, down 6 per cent year on year, a result of currency devaluation, anticipated tax changes and one-off items. However, excluding UAE corporate income tax, valuation gains and impairments, net profit was up 18 per cent.

While on a constant currency basis, EBITDA increased 3 per cent, and revenue grew by 1 per cent.

Within the group’s varied operating companies, revenues grew significantly in key divisions including Properties, Retail Digital and Lifestyle, while overall revenue in the UAE grew by 7 per cent, offsetting challenges in other operating companies and economic headwinds in certain markets.

The company also bolstered its financial position by increasing free cash flow by 270 per cent to Dhs2.8bn and cutting net debt by Dhs1bn, reinforcing its BBB credit rating with a stable outlook.

Growth across divisions

Majid Al Futtaim’s Properties division led growth, posting a 25 per cent increase in net revenue, fueled by strong demand for its malls and residential projects.

Net revenue grew by 25 per cent year-on-year to Dhs8.7bn and EBITDA increasing by 16 per cent to Dhs4.2bn.

The newly launched Ghaf Woods saw Phases 1 and 2 sell out in under a week, underscoring the appeal of the group’s community-driven developments.

Meanwhile, the Retail division initiated a turnaround strategy in Q3. Its brick-and-mortar business reported revenue at Dhs22.2bn and EBITDA at Dhs381m while its digital business achieved full-year EBITDA profitability.

Majid Al Futtaim’s shopping malls continued to thrive with leasing occupancy hitting 97 per cent and footfall remaining stable from record growth in 2023 across its 29 malls.

The newly optimised Hotels portfolio also performed well.

Majid Al Futtaim results reflect the group’s resilience, says CEO

Ahmed Galal Ismail, CEO of Majid Al Futtaim, said the results reflect the group’s resilience amid macroeconomic challenges and its commitment to long-term value creation.

“Despite geopolitical headwinds and higher corporate tax costs, we delivered strong financial performance, underscored by record free cash flow and robust growth across our key business segments,” he noted.

The company also made significant strides in sustainability, achieving a 13 per cent Emiratisation rate — earning the NAFIS award for the second consecutive year — and maintaining a low-risk ESG rating from Sustainalytics.

Majid Al Futtaim ended the year with total assets of Dhs68.8bn, with net debt to equity improving to 41 per cent, reinforcing its position as one of the region’s most financially resilient conglomerates.