UAE's Majid Al Futtaim posts revenue of $9.39 bn in FY23

26 Mar '24

3 min read

Pic: Majid Al Futtaim

Insights

Majid Al Futtaim reported a 1 per cent revenue increase to AED 34.5 billion ($9.39 billion) in FY23, with assets rising to AED 69.7 billion.
Lifestyle segment revenue soared by 29 per cent, crossing AED 1 billion, while retail faced a 4 per cent decline.
The company emphasised sustainability, reducing single-use plastic by 87 per cent in the UAE.

Dubai-based Majid Al Futtaim, a leading shopping mall, communities, retail, and leisure pioneer across the Middle East, Africa, and Asia, has reported a consolidated revenue increase of 1 per cent to AED 34.5 billion (approximately $9.39 billion) in fiscal 2023 (FY23). The group's EBITDA also saw a notable increase of 12 per cent to AED 4.6 billion.

Majid Al Futtaim's total assets rose to AED 69.7 billion, up from AED 66.1 billion in FY22, the company said in a press release.

The lifestyle segment saw significant growth, with revenue soaring by 29 per cent to cross the AED 1 billion mark for the first time, driven by a significant 20 per cent increase in footfall through its 70 stores across the Middle East and North Africa (MENA) region. This growth was further evidenced by a 24 per cent increase in revenue from its Middle East stores, reaching AED 901 million, and digital sales hitting AED 104 million in FY23. EBITDA for the segment jumped by 168 per cent to AED 67 million, up from AED 25 million in the previous year.

Majid Al Futtaim’s retail segment reported revenue declining by 4 per cent to AED 24.7 billion, primarily due to currency devaluations in Egypt, Pakistan, Kenya, and Lebanon, and changing consumer sentiments amidst geopolitical tensions. Despite these challenges, the retail digital business experienced a 17 per cent increase in revenue to AED 2.6 billion, now accounting for nearly 10 per cent of Majid Al Futtaim Retail’s revenues in 2023. The group also expanded its physical footprint by opening 20 new stores across the region.

The company continues to lead in sustainable growth, launching a new phase of its ‘Dare Today, Change Tomorrow’ sustainability strategy in 2023. The company's commitment to becoming net positive in carbon and water by 2040 is underscored by its significant reduction of single-use plastic bag consumption by 87 per cent in the UAE. This achievement aligns with supportive government policies towards environmental sustainability.

The group's strategic partnerships with world-renowned brands like Abercrombie & Fitch, Hollister, AllSaints, and Lululemon Athletica, further solidify Majid Al Futtaim's position as the international retail partner of choice in the region.

Ahmed Galal Ismail, chief executive officer, Majid Al Futtaim, said: “Majid Al Futtaim’s FY23 financial performance reflects our sustained focus to deliver value-accretive, profitable growth. The robust growth from our entertainment and lifestyle businesses and promising delivery from our Majid Al Futtaim retail digital transformation have delivered 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.

“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.”

Fibre2Fashion News Desk (DP)

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