Majid Al Futtaim, a leading shopping malls, communities, retail, and leisure pioneer across the Middle East, Africa, and Central Asia, reported a record first-half EBITDA of AED2.5 billion, a 11% increase year-on-year.
Net operating profit after tax rose 25% to AED1.8 billion. Earnings grew well ahead of revenue, which increased 1% year-on-year to AED17.5 billion ($4.77 billion), reflecting the growing contribution of higher-margin development, shopping malls, cinemas and digital businesses to overall Group performance.
This performance demonstrates the value of a diversified and integrated business model that brings together destinations, communities, grocery retail, entertainment, lifestyle and digital platforms, the group said.
Combined with disciplined execution and deep customer relationships, this model enabled Majid Al Futtaim to sustain growth and continue investing in the capabilities that will define its next phase of value creation, despite the impact of the regional conflict on the operating environment during the second quarter, it said.
Strong balance sheet metrics and healthy liquidity preserved the financial flexibility to meet investment commitments and continue allocating capital selectively towards the strategic priorities that will strengthen the group’s long-term growth trajectory. At the end of the first half, net borrowings stood at AED13.2 billion while the group maintained a balanced debt profile and healthy liquidity, with cash and available committed lines covering more than two and a half years of net financing needs. The group's total asset base stood at approximately AED73 billion, up 4% year-on-year, underlining the strength of its financial position.
Fadel Abdulbaqi Al Ali, Chairman of the Board, Majid Al Futtaim Holding, said: “Majid Al Futtaim’s strength is rooted in disciplined stewardship, prudent capital allocation and a long-term commitment to creating enduring value. Just as importantly, we continue to foster a culture that looks ahead, strengthening customer experiences, deepening partner relationships and investing ahead of evolving expectations to ensure we remain well positioned to prosper over the long term.”
Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim Holding, added: “These results show the dynamism of Majid Al Futtaim’s diversified and integrated portfolio in practice. Across our 14 markets, the operational strength of our businesses is reflected in the contribution of multiple growth engines, from development and destinations to digital platforms and customer businesses, while disciplined execution continues to strengthen profitability. As we look ahead, we will keep building on that momentum, connecting our businesses more closely and investing in the destinations, platforms and technologies that will unlock new avenues for growth and shape the next chapter of Majid Al Futtaim.”
The group's destinations and communities portfolio also continued to demonstrate its strategic value, with the Development business remaining a significant growth engine, delivering a 38% year-on-year increase in revenue. The development pipeline exceeds AED100 billion, with AED2.8 billion in construction contracts awarded to date, alongside an AED62 billion agreement with Dubai South to develop a 22-million-square-foot mixed-use community and a partnership with Midar for a mixed-use development in Cairo, Egypt. Construction also advanced at Ghaf Woods and the Mall of the Emirates redevelopment.
The group also broke ground on JUNCTION, a next-generation mixed-use business park in West Cairo. The first phase forms part of an investment exceeding EGP 20 billion, which will support the district’s development as an important commercial hub.
Across the Asset Management portfolio, resilient customer demand, strong leasing activity and solid tenant performance within malls, which saw a 12% year-on-year revenue increase, helped to offset softer tourism demand in the hotels business during the second quarter, resulting in 4% year-on-year net revenue growth to AED2.3 billion.
Retail
Retail performance saw revenue decline 6% year-on-year, predominantly driven by non-food categories. This reflects more challenging consumer conditions - particularly in the UAE – as well as deliberate actions taken as part of the ongoing transformation. These actions have created some near-term impact as the business takes the necessary steps to position itself for sustainable, profitable growth. At the same time, markets outside the GCC provided greater resilience, with revenue growing 4% year-on-year, supported by particularly strong growth in Egypt and Kenya. Online performance remained a relative strength, with Retail digital revenue increasing 11% to AED1.8 billion, while Precision Media continued to scale rapidly, with revenue increasing 89% year-on-year to AED75 million.
Across the wider portfolio, complementary businesses continued to support resilient performance. Cinemas performed well through the first half with 3% year-on-year revenue growth, supporting the Entertainment business and helping offset more moderate demand across other discretionary categories. Entertainment remained focused on the experiences and formats that reflect how customers increasingly choose to spend their time, bringing together food, entertainment and leisure in ways that create more compelling destinations. New concepts such as SOCO exemplify this approach, responding to changing customer preferences while encouraging deeper engagement across the Group's destinations.
The group’s Lifestyle business continued to strengthen Majid Al Futtaim’s position as a trusted regional partner for leading international brands, combining deep market knowledge, operational expertise and an established regional platform to support the growth of brands including lululemon, LEGO, Crate & Barrel and Shiseido. Revenue grew 5% year-on-year, with digital revenue increasing 9%, alongside continued expansion of the physical store network. -TradeArabia News Service