Dubai, UAE — UAE’s leading shopping malls and retail group, Majid Al Futtaim (MAF), Thursday reported a net profit of AED 2.7 billion ($735 million) for 2023, up 12% year on year (YoY)
In a statement, the group reported a 12 percent increase in EBITDA to AED 4.6 billion and a 1 percent increase in revenue to 34.5 billion.
MAF – Properties recorded a 20 percent YoY increase in revenue to AED 6.9 billion and 21 percent increase in EBITDA to AED 3.6 billion due to the success of UAE-based shopping malls and Tilal Al Ghaf.
The Group’s retail vertical’s digital sales revenue grew by 17 percent to AED 2.6 billion, while MAF– Lifestyle revenue increased by 29 percent and crossed the AED 1 billion mark for the first time.
The Group’s total assets increased to AED 69.7 billion, up from AED 66.1 billion in 2022. The statement said that within 2023, the Group undertook a reassessment of its accounting policy with respect to Majid Al Futtaim Retail supplier benefits.
Accordingly, this income is now recognized as credit against cost of sales instead of being classified as revenue. This restatement has no impact on the Group’s net profit or EBITDA, the statement reads.
The Group’s net debt increased to AED 15 billion, primarily due to investments in working capital.
Ahmed Galal Ismail, MAF CEO, said, “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 behaviors, we are confident in our ability to navigate the path ahead while delivering value to our stakeholders in 2024 and beyond.”