Majid Al Futtaim reports $9.2bn revenue and $681m net profit

Arabian Business

24-03-2025

Majid Al Futtaim has reported consolidated revenue of AED33.9bn ($9.2bn), down 2 per cent, while EBITDA grew 1 per cent at AED4.6bn ($1.25bn), through growth in key business areas across the portfolio and prudent financial discipline.
Despite challenging circumstances, the Group achieved a net profit of AED2.5bn ($681m), 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.
Majid Al Futtaim results
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 Group generated AED2.8bn ($762.4m) in free cash flow, a 270 per cent increase over the previous year and reduced net debt by AED1bn ($272m), underscoring the prudence of its financial strategy and focus on long-term value creation.
Total assets stood at AED68.8bn ($18.7bn) and net debt to equity improved to 41 per cent.
Ahmed Galal Ismail, CEO, Majid Al Futtaim, said: ''2024 was a year defined by extraordinary achievement for Majid Al Futtaim. Despite complex circumstances including macroeconomic factors, geopolitical headwinds and higher corporate tax costs, the Group delivered a strong financial performance.
'Net profit before UAE corporate income tax, valuation gains and impairments was up 18 per cent reaching AED2.04bn ($555.5m) and we closed out the year with free cash flow up almost four-fold, reinforcing the strength of our business model, our ability to adapt, and our unwavering focus on long-term value creation.
'The Group's robust financial performance was underpinned by a record year across our Properties business, with high demand for our latest project Ghaf Woods and new phases of Tilal Al Ghaf, as well as strong tenant sales across our malls.
'We also saw encouraging progress from our Retail business, where its turnaround efforts are bearing early fruit, and its digital business continues to go from strength to strength. As demand for omnichannel solutions continues to accelerate, our newly launched AI-enabled AdTech business, Precision Media, has shown extremely encouraging early performance.
'As Majid Al Futtaim's first digitally native business, Precision Media underscores our unwavering commitment to transforming customer experience, and with more than 150 global and local partners already benefitting from its insights, I look forward to seeing its impact continue to expand in the months ahead.
'2024 has also marked a year of significant achievement in delivering on our commitment to nurturing local talent, with our Emiratisation levels reaching a record high of 13 per cent and reflecting our ability to create rewarding career paths and bespoke learning opportunities for the region's future leaders.'
Majid Al Futtaim company performances
The Group's Properties business achieved a strong performance in 2024, with net revenue growing by 25 per cent year-on-year to AED8.7bn ($2.4bn) and EBITDA increasing by 16 per cent to AED4.2bn ($1.1bn). Majid Al Futtaim's shopping malls have 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 continued to perform well. Further key contributors included the strong performance of the newly launched Ghaf Woods residential development, where Phases 1 and 2 were fully sold within seven days. Tilal Al Ghaf set a new record for luxury living with the release of additional phases which demonstrates the market's appetite for innovative, sustainable, and community-centric living space. Total gross sales for 2024 reached AED7.9bn ($2.2bn), demonstrating 30 per cent growth year on year
Majid Al Futtaim's Retail business faced a challenging but rewarding year for its brick-and-mortar business which resulted in revenue at AED22.2bn ($6bn) and EBITDA at AED381m ($104m). On one side, revenues were affected by currency devaluations in key markets and the impact of geopolitical tensions on consumer sentiment; on the other side, 2024 saw the expansion of its discounter offering Supeco, in Egypt, the introduction of Hypermax, a new 100 per cent owned and operated grocery brand in Jordan and early progress of its turnaround programme in the UAE offer a positive outlook. On the digital side, the business achieved significant progress in several strategic areas. Online revenue grew by 14 per cent to AED2.7bn ($735.2m) as the Group continued to prioritise its omnichannel offering to meet evolving consumer preferences. The launch of Precision Media, the Group's first digitally native business leverages AI-powered technology to transform how brands engage with customers. As eCommerce increasingly shifts toward quick commerce, the Group's pivot into this space has seen the Carrefour Now platform grow by 30 per cent over the past 12 months to account for 38 per cent of digital revenues and delivering an EBITDA of 5.9 per cent in 2024
The Lifestyle business delivered strong growth, with revenue rising 26 per cent to AED1.3bn ($354m) and EBITDA increasing 43 per cent to AED96m ($26.1m) compared to the previous year. The expansion of key brands like lululemon, LEGO and Shiseido fuelled this success, with one of lululemon's Dubai-based stores ranking the third-best performing store globally. As a core booster of Majid Al Futtaim's strategy, Lifestyle continues to inject innovation and excitement into the Group's portfolio. This year, the division further strengthened its portfolio by introducing new luxury and lifestyle brands, including the exclusive franchise agreement with Italian luxury label Eleventy, reflecting its commitment to bringing fresh and coveted offerings to the region
Its Entertainment business reported net revenue of AED1.7bn ($463m) and EBITDA at AED164m ($44.6m). With regional cinema markets continuing to recover, VOX Cinemas saw a 2 per cent increase in admissions, supported by growing consumer interest in premium experiences. In a further step towards diversifying its entertainment offerings, the Group launched 'ACTIVATE' in the UAE, an interactive gaming concept designed to merge technology and physical activity