- Majid Al Futtaim reported a significant surge in net profit for the first half of 2023, reaching AED 1.69 billion compared to AED 970 million the previous year, marking a remarkable 74% increase. The company's key operating margins also demonstrated stability and growth. Revenues stood at AED 18.86 billion, a notable improvement from AED 18 billion in H1-22, supported by robust results from its Dubai development project, Tilal Al Ghaf.
- Additionally, Majid Al Futtaim's strategic move to transfer its online grocery operations and other businesses to its subsidiary, Majid Al Futtaim Holding, on January 1, 2023, contributed to the company's overall growth trajectory. The report noted that UAE consumers increased their spending across various channels, including malls, shops, and online platforms, defying earlier forecasts of caution at the start of the year. A significant portion of this increased spending was reflected in the company's improved margin of 11.4% compared to 9.2%, attributed to enhanced EBITDA margins.
Why it matters
This highlights Majid Al Futtaim's impressive financial performance in the first half of 2023, marked by substantial profit growth and successful strategic moves, such as the transfer of online grocery operations. The strong consumer spending in the UAE, combined with improved margins and gains from the flourishing Dubai property market, underscores the company's resilience and adaptability to market conditions.
