Dubai-based retail conglomerate Majid Al Futtaim has reported a 74 per cent year-on-year jump in H1 2023 net profit to 1.7 billion dirhams ($463 million).
The group’s revenues for the period rose by five per cent to AED18.9 billion.
Primarily driven by the impact of currency devaluations in Egypt, Pakistan, Kenya and Lebanon, overall revenue declined by two per cent to AED 14.1 billion with EBITDA dipping by seven per cent. At a constant currency rate, revenue increased by eight per cent, with EBITDA rising by five per cent. Online performance of retail’s digital business has remained robust, recording a 13 per cent increase in revenue to AED 1.2 billion in the first half of 2023.
During the same period, the conglomerate launched five stores across the Mena region, including two further Supeco low-cost, hybrid concept stores in Egypt to meet the growing consumer demand for digital and omnichannel experiences.
Revenue in Majid Al Futtaim – Lifestyle has shot up by 31 per cent to AED 473 million and EBITDA improved by 300 per cent to AED 12 million over the first six months of the year.
The business opened 11 stores in the first half of the year and entered two new categories – luxury home and beauty.
In January, the Lifestyle business added Italian furniture brand Poltrona Frau to its portfolio, also opening the only Shiseido store outside of Asia in May. These brands seek to complement Lifestyle’s pre-existing portfolio of eight franchises and two homegrown brands and provide additional opportunities to further the business’ consistent year-on-year double-digit growth.
CEO of Majid Al Futtaim – Holding, Ahmed Galal Ismail, said: “Majid Al Futtaim is successfully balancing strategic growth with profitable and responsible execution.
“Our efforts to drive defined business objectives across our portfolio with a renewed focus on operational excellence and productivity are delivering sustainable, profitable growth and value to our stakeholders. The economic buoyancy of the UAE in conjunction with our internal focus to unlock the inherent power of our ecosystem has enabled the Group to deliver a solid half-year performance.”
Majid Al Futtaim owns 29 shopping malls in five countries, including the UAE and Egypt, and operates a portfolio of more than 460 outlets. It also owns cinemas, leisure brands, retail fashion stores, properties and hotels.
