Majid Al Futtaim, a retail and leisure pioneer across the region, has registered revenues of AED15.6 billion ($4.25 billion) during the first half (H1) of the year, a year-on-year decrease of 10% despite the pandemic’s impact on its operations.

The group also reported EBITDA of AED1.6 billion for the period, an increase of 2%.

Net profit after tax amounted to AED662 million and total equity saw a marginal increase. This was primarily due to the relative stabilisation in the market, resulting in steady asset valuations, a company statement said.

Alain Bejjani, Chief Executive Officer of Majid Al Futtaim - Holding, said: “Despite the prolonged impact of the Covid-19 pandemic, Majid Al Futtaim has delivered a robust performance over the first half of the year, driven by prudent financial management and a diversified portfolio.”

“While we continue to feel impact from the continued disruption, our strong financial position has enabled us to remain resilient to that pressure and agile in how we respond to the stressors within our operating environment. This has enabled us to continue executing on delivery of our regional growth strategy.  

“Over the first half of the year, we have seen encouraging signs of recovery across our markets, as consumers gain confidence in resuming their pre-pandemic activities. In addition to the increased activity across our physical assets, the acceleration of pre-pandemic trends – particularly as they pertain to digital capabilities – continues to gather pace. We remain committed to investing in all areas of our business to ensure we are well-positioned to best serve our customers’ evolving wants and needs.  

“Our successes are testament to the drive and determination of our people. Supported by their diligent efforts to drive our growth agenda, we are able to look ahead with confidence and remain steadfast in our support of the communities and markets in which we operate,” Bejjani added.

Majid Al Futtaim remains on track to deliver on both its commitment to become Net Positive in water and energy by 2040 as well as its pledge to phase out single-use plastic across its operations by 2025. The publication of the Group’s Annual Sustainability report earlier this year highlighted its progress to date, including achieving 97% of its 2020 targets.

Key operational highlights:

•    Opened City Centre Al Zahia, the largest mall in the Northern Emirates
•    Recorded gross sales value of AED2.8 billion following the launch of two new project phases within the Tilal Al Ghaf community development in Dubai
•    Reported +25% increase in Carrefour online sales and +50% growth in number of orders versus last year; Opened the first automated fulfilment centre in Saudi Arabia
•    Committed to the World Economic Forum Global Stakeholder Capitalism metrics – the first organisation in the Middle East to do so
•    Entered Majid Al Futtaim’s first sustainability-linked syndicated bank financing structure
•    Maintained ‘BBB’ credit rating in latest Standard & Poor’s (S&P) report

Future investment

Majid Al Futtaim will continue efforts to support its stakeholders, including governmental authorities in markets where it operates, by working towards a full economic recovery and sustainable economic development, while maintaining a disciplined financial management approach.

New investments include Mall of Saudi, a major addition to the shopping malls and retail industries that will transform the landscape of Riyadh, creating jobs and long-lasting community impact. The project is set to break ground in Q4 this year and underlines Majid Al Futtaim’s two-decade strong commitment to the Kingdom of Saudi Arabia and contribution to Vision 2030.

Majid Al Futtaim – Retail will continue its expansion across Egypt, Saudi Arabia, Kenya, Uganda, and Uzbekistan. It will also continue to invest and scale up its e-commerce capabilities to meet the continued growing online demand across the region.

Majid Al Futtaim – LEC will continue its expansion in Saudi Arabia, expecting to open a further 13 screens across the Kingdom through the remainder of the year.

Financing

The Group’s robust balance sheet has allowed it to maintain a strong financial and liquidity position even amidst extraordinarily stressed circumstances, with cash and available committed facilities to cover its net financing needs for the next three years, without any interventions to its previous plans.

Majid Al Futtaim’s debt maturity profile is light over the next three years, with no material debt maturity until September 2024.

At the end of the half year, the company entered into its inaugural sustainability-linked syndicated bank financing through amending and extending an existing syndicated revolving facility. This included clear targets linked to the company-wide sustainability strategy, Dare Today, Change Tomorrow, including Scope 1 and Scope 2 emissions reduction and gender diversity across senior management.

The signing underscores Majid Al Futtaim’s commitment to driving positive and sustainable economic and societal change in the region in addition to the realisation of its long-term strategic targets. – TradeArabia News Service