Majid Al Futtaim announces its audit financials for H1 2022, Invest-Gate reports.
The company reported a revenue of AED 18 bn, an increase of 15% compared to H1 2021. EBITDA rose 18% to AED 1.9 bn, a result of the company’s solid operational performance, driven by diversification efforts and a continued focus on cost efficiencies and scale. Majid Al Futtaim continues to maintain a strong balance sheet with total assets of AED 62.9 bn. Moreover, net borrowings stood at AED 11.2 bn.
Alain Bejjani, CEO of Majid Al Futtaim, says, “A strong, customer-focused strategy supported by unrivalled data and analytics capabilities has enabled Majid Al Futtaim to deliver sustained growth in H1 2022.”
Compared to 2021 figures, Majid Al Futtaim’s revenue rose 51% to AED 2.4 bn, while EBITDA was up 27% to AED 1.4 bn.
According to the company’s statement, retail recorded a 9% increase in revenue, standing at AED 14.4 bn for 2022, while EBITDA fell 9% to AED 567 mn. Continuing to expand its international footprint, Majid Al Futtaim also opened 18 new stores across its geographies.
In line with the global transformation to digital retail services, the Group invested in the development of express commerce, seeing a 73% increase in digital sales. In addition, Majid Al Futtaim Retail opened the UAE’s first BIO store in January, featuring the retailer’s first-ever café and an in-store hydroponic farm.
Majid Al Futtaim registered a 56% increase in revenue to AED 784 mn and a rise in EBITDA to AED 33 mn, largely due to the lifted operating capacity restrictions. Furthermore, cinemas’ admissions increased by 60% to AED 8.8 mn.
In its pursuit of being economically resilient in H1 2022, Majid Al Futtaim will continue to support sustainable economic development while adhering to a prudent financial management strategy. Majid Futtaim continues to make progress on its pipeline development projects, including Mall of the Emirates redevelopment and Mall of Saudi.
In June 2022, the company tendered its USD 500 mn outstanding hybrid notes with the first call date falling in September 2022 and replaced them with a new USD 500 mn green hybrid notes with a first call date falling in September 2027.
For the 11th consecutive year, the company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both S&P’s and Fitch Ratings due to the company’s credit strengths, the resilience of its business model, quality of assets, strong corporate governance, and prudent financial management.