Mall Operator's Net Profit Rises

Majid Al Futtaim Group, a prominent Dubai-based mall and residential community developer, reported a net profit of Dh2.5 billion for 2024, reflecting a 6% decrease compared to the previous year. Revenue also saw a slight dip, reaching Dh33.9 billion, down 2%. This decline was attributed to currency devaluations, anticipated tax adjustments, and specific one-time factors. However, excluding UAE corporate income tax, valuation gains, and impairments, net profit actually increased by 18%. The properties division continued to be a strong performer, with net revenue up 25% year-on-year to Dh8.7 billion, leading to a 16% increase in EBITDA to Dh4.2 billion. The shopping malls, including the flagship Mall of the Emirates, maintained high occupancy rates at 97% and stable footfall.

The retail sector experienced a challenging yet rewarding year, generating Dh22.2 billion in revenue and an EBITDA of AED 381 million. Currency devaluations in key markets and geopolitical tensions impacted revenue. Despite these challenges, the group expanded its discount offerings with Supeco in Egypt and introduced Hypermax, a new grocery brand, in Jordan. Turnaround efforts in the UAE also showed early progress, indicating a positive outlook. The company's e-commerce platform, 'Carrefour Now,' experienced significant growth, increasing by 30% and contributing 38% of digital revenues, with an EBITDA of 5.9% in 2024.

Financially, the group demonstrated strong performance by reducing net debt by Dh1 billion, reflecting a prudent financial strategy. Free cash flow surged by 270% to Dh2.8 billion. Total assets reached Dh68.8 billion, and the net debt-to-equity ratio improved to 41%. CEO Ahmed Galal Ismail highlighted the encouraging progress in the retail business and the continued strength of the digital segment, emphasizing the company's adaptability and focus on long-term value creation.