Majid Al Futtaim Holding, one of Dubai's biggest private sector companies and the Middle East's largest mall operator, reported an increase of 4 per cent in last year's earnings as revenue rose despite global economic headwinds and rising inflation.
Earnings before interest, taxes, depreciation and amortisation (ebitda) for the 12 months to the end of December climbed to Dh4.1 billion ($1.12 billion), the company said in a statement on Monday.
The privately held conglomerate said the “group's solid operational performance” as well as income from its properties business drove revenue 12 per cent higher on an annual basis to Dh36.3 billion.
Net profit for the reporting period declined 2 per cent to Dh2.4 billion.
The company said its balance sheet remained strong, with assets up 9 per cent year-on-year to approximately Dh66 billion.
"Overall, Majid Al Futtaim delivered balanced growth through 2022," said Ahmed Ismail, chief executive of Majid Al Futtaim Holding.
"Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the group to achieve double-digital revenue growth despite the ongoing macroeconomic challenges.
“The potential impact of these headwinds has been further lessened by the outstanding performance of our properties portfolio, which has contributed 74 per cent of total ebitda.”
The retail industry, which was severely affected during pandemic lockdowns, bounced back strongly in 2021 and has maintained its growth momentum since.
Consumer spending in the UAE increased 22 per cent in the first half of last year, despite a rise in fuel costs and higher inflation, Majid Al Futtaim said in its State of the UAE Retail Economy report in August.
Spending on retail items grew 16 per cent and on non-retail goods rose 31 per cent in the same period, it said.
The economic rebound of the UAE, the Arab world’s second-largest economy, and its booming travel and tourism sector have bucked weaker global economic trends, supporting the growth momentum in the retail sector.
The UAE economy is estimated to have grown by 7.6 per cent last year, the highest in 11 years, driven by the oil and non-oil sectors, after expanding by 3.8 per cent in 2021, the UAE Central Bank said.
It is projected to grow 3.9 per cent this year, the regulator has forecast.
First Abu Dhabi Bank forecasts hydrocarbon and non-hydrocarbon real gross domestic product growth of 5.4 per cent and 4.7 per cent, respectively, for the UAE economy this year.
Emirates NBD expects the UAE's GDP to grow by 3.9 per cent in the year.
Majid Al Futtaim said the company had “solid financial standing” and it remained “fully committed to delivering value-accretive” profitable growth for its shareholders.
The company’s revenue from its property division surged by 43 per cent to Dh5.8 billion, driven by robust performance across its hotels and communities’ businesses.
The shopping-mall segment was boosted by “the full-year impact” of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, as overall mall footfall for the group increased 16 per cent to 212 million visitors.
The company’s hotels portfolio revenue increased 48 per cent to Dh671 million, in part boosted by Expo 2020 Dubai. Revenue per available room and average occupancy increased by 50 per cent and 14 per cent, respectively, last year.
Majid Al Futtaim’s retail business reported a 7 per cent increase in revenue to Dh28 billion last year, driven by “renewed consumer confidence, easing of Covid-19 restrictions and rebound in travel and tourism in countries where Majid Al Futtaim operates”, it said.
The group expanded its presence in the region, opening seven hypermarkets and 28 supermarkets across nine countries that pushed the total number of its stores to more than 450.
The company’s entertainment business revenue increased 23 per cent to Dh1.6 billion, while ebitda grew 68 per cent Dh126 million.
The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the Mena region, is expected to fuel further growth for the business, it said.
Majid Al Futtaim Lifestyle reported revenue of Dh801 million, a 38 per cent year-on-year jump, which the company said was driven by a strong performance across its brands.
Looking ahead, the company plans further expansion in “high growth potential markets such as Saudi Arabia and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence”, it said.
“The group will also continue to invest and expand its omnichannel presence, to ensure the business is future-proof and is delivering on the changing customer needs."
Majid Al Futtaim, which had net borrowings of Dh14.2 billion at the end of last year, said it continues to maintain a strong financial and liquidity position and its debt maturity profile remains “balanced”, with a mix of capital markets and bank financing.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
AWARDS
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PROFILE OF CURE.FIT
Started: July 2016
Founders: Mukesh Bansal and Ankit Nagori
Based: Bangalore, India
Sector: Health & wellness
Size: 500 employees
Investment: $250 million
Investors: Accel, Oaktree Capital (US); Chiratae Ventures, Epiq Capital, Innoven Capital, Kalaari Capital, Kotak Mahindra Bank, Piramal Group’s Anand Piramal, Pratithi Investment Trust, Ratan Tata (India); and Unilever Ventures (Unilever’s global venture capital arm)
Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Engine: 5.6-litre V8
Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
Price: Dh234,000 - Dh329,000
On sale: now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Read more about the coronavirus
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
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Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
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- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
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'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Profile of Tarabut Gateway
Founder: Abdulla Almoayed
Based: UAE
Founded: 2017
Number of employees: 35
Sector: FinTech
Raised: $13 million
Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.
Pathaan
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
How England have scored their set-piece goals in Russia
Three Penalties
v Panama, Group Stage (Harry Kane)
v Panama, Group Stage (Kane)
v Colombia, Last 16 (Kane)
Four Corners
v Tunisia, Group Stage (Kane, via John Stones header, from Ashley Young corner)
v Tunisia, Group Stage (Kane, via Harry Maguire header, from Kieran Trippier corner)
v Panama, Group Stage (Stones, header, from Trippier corner)
v Sweden, Quarter-Final (Maguire, header, from Young corner)
One Free-Kick
v Panama, Group Stage (Stones, via Jordan Henderson, Kane header, and Raheem Sterling, from Tripper free-kick)
New Zealand T20 squad
New Zealand T20 squad: Tim Southee (captain), Finn Allen, Todd Astle, Hamish Bennett, Mark Chapman, Devon Conway (wicketkeeper), Lockie Ferguson, Martin Guptill, Adam Milne, Daryl Mitchell, Glenn Phillips, Ish Sodhi, Will Young
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
if you go
The flights
Emirates offer flights to Buenos Aires from Dubai, via Rio De Janeiro from around Dh6,300. emirates.com
Seeing the games
Tangol sell experiences across South America and generally have good access to tickets for most of the big teams in Buenos Aires: Boca Juniors, River Plate, and Independiente. Prices from Dh550 and include pick up and drop off from your hotel in the city. tangol.com
Staying there
Tangol will pick up tourists from any hotel in Buenos Aires, but after the intensity of the game, the Faena makes for tranquil, upmarket accommodation. Doubles from Dh1,110. faena.com
Results
3pm: Handicap (PA) Dh40,000 (Dirt) 1,000m; Winner: Dhafra, Antonio Fresu (jockey), Eric Lemartinel (trainer)
3.30pm: Maiden (PA) Dh40,000 (D) 2,000m; Winner: Al Ajayib, Antonio Fresu, Eric Lemartinel
4pm: Handicap (PA) Dh40,000 (D) 1,700m; Winner: Ashtr, Abdul Aziz Al Balushi, Majed Al Jahouri
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