Majid Al Futtaim reported a revenue of Dhs32.6 billion and EBITDA of Dhs3.8 billion, representing declines of 7% and 19%, respectively, driven by the impact of the COVID-19 pandemic, in its audited operational and financial results for 2020. The company’s assets decreased 6% to approximately Dhs59.1 billion.
Alain Bejjani, Chief Executive Officer, Majid Al Futtaim commented on the company’s 2020 results, “Despite the extraordinary events of 2020, Majid Al Futtaim’s full year performance demonstrated the resilience of our people and business model, diverse portfolio, operational agility, proactive investments and prudent financial risk management.
“The fact that we have experienced growth in some of our businesses during a year of unprecedented disruption is a testament to the importance that should always be placed on people, the planet and our collective progress. For me, this is stakeholder capitalism in action, and it makes me optimistic about our future.”
From the onset of the pandemic, Majid Al Futtaim adopted a stakeholder-first strategy, including strengthening its engagement with governments across all markets in which the company operates to identify and implement measures to minimise the spread of the virus and overcome supply challenges derived from the pandemic.
Amid government-mandated closures and lockdowns, Majid Al Futtaim decided to forego rent at its 27 shopping malls across five markets to ease the financial burden on its tenants, while stores were temporarily closed.
Majid Al Futtaim remained committed to its sustainability strategy throughout the pandemic, including the company’s goal to be Net Positive by 2040 and its pledge to phase-out single-use plastics from its operations by 2025.
In addition, the company launched its ambitious circular economy strategy that details the roadmap towards eliminating waste and the continual use of resources across the company’s operations in the next ten years.
Compared to 2019, Majid Al Futtaim – Properties registered a decline of 24% in revenue and 21% in EBITDA, standing at Dhs3.5 billion and Dhs2.3 billion, respectively.
The Shopping Malls business saw a decline in revenue due to temporary asset closures across the region, the proactive decision to forego tenant rent payments during closure periods and rent relief mechanisms to support tenants. During the second half of the year, the business experienced a gradual recovery in footfall as the economy started to reopen.
Majid Al Futtaim – Hotels experienced a 60% drop-in occupancy rates due to asset closures for a prolonged period, and reduced demand as a result of border closures, travel restrictions and lower capacity.