Majid Al Futtaim, the leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa and Central Asia, announced its audit reviewed operational and financial results for H1 2022 on Thursday. Following a steady economic recovery in retail and leisure sectors, the Group reported a revenue of AED 18 billion, an increase of 15 per cent compared to H1 2021. EBITDA rose 18 per cent to AED 1.9 billion, a result of the company’s solid operational performance, driven by diversification efforts and a continued focus on cost efficiencies and scale. The Group continues to maintain a strong balance sheet with total assets valued at around AED 62.9 billion. Net borrowings stood at AED 11.2 billion.
Alain Bejjani, Chief Executive Officer of Majid Al Futtaim – Holding, said: “A strong, customer-focused strategy supported by unrivalled data and analytics capabilities has enabled Majid Al Futtaim to deliver sustained growth through H1 2022. Our efforts have been further amplified by MENA’s steady progress in moving beyond post-pandemic recovery as we collectively turn our efforts towards economic expansion and regional prosperity.
“The growth delivered in the first half of the year is encouraging. While our region is not immune to building global inflation and supply chain pressures, Majid Al Futtaim remains optimistic towards the broader economic outlook. Our prudent financial discipline and strong governance ensures our resilience in the face of any immediate impact while ensuring we are well-positioned to remain focused on sustainable value creation.”
The Group, which has a substantial portfolio of investments in the Sultanate of Oman, continues to benefit from a sustained post-pandemic rebound in consumer confidence, as evidenced in increased shopping mall footfall, hotel occupancy rates, and admission to its cinemas and leisure and entertainment venues.
Retailing trends, such as the consumer demand for digital and omnichannel experiences, have continued to gather pace. The Group continues to be well-placed to capitalise on digital opportunities in order to invest, innovate and elevate its offering to meet evolving consumer wants and needs.
Majid Al Futtaim’s robust balance sheet has allowed it to maintain a strong financial and liquidity position thanks to the steadily recovering market conditions. The company’s debt maturity profile remains light with no material debt maturity until May 2024.
Despite challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group tendered its $500 million outstanding hybrid notes with the first call date falling in September 2022 and replaced them with a new $500 million Green hybrid notes with a first call date falling in September 2027. This was the Group’s first hybrid transaction in green format and the first green corporate hybrid from MENA.
For the 11th consecutive year, the company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both S&P’s and Fitch Ratings. The ratings reiterate the company’s credit strengths, resilience of its business model, quality of assets, strong corporate governance and prudent financial management.
