Majid Al Futtaim posts record FY2025 results with 41% jump in net profit

2026-03-17 - 17:50

Majid Al Futtaim reported record financial results for the full year 2025, driven by strong operational performance, disciplined capital management, and sustained demand across its core businesses. The group delivered double-digit growth in profitability and strengthened its balance sheet to the healthiest position in over a decade. In December 2025, consolidated revenue rose 6% year-on-year to AED 35.9bn, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 10% to AED 5.1bn, marking the first time the company has surpassed the AED 5bn threshold. Net profit surged 41% to AED 3.6bn, supported in part by valuation gains. Excluding these gains, net profit climbed 48% to AED 2.3bn, reflecting the strength of underlying operations and the group’s diversified growth model. The company generated AED 3.5bn in free cash flow, up 25% from the previous year, enabling further deleveraging. Net debt fell 15% to AED 11.9bn, while the net debt-to-equity ratio improved to 32%, the lowest level in over ten years. Total assets reached AED 71bn, positioning the group to continue investing across its development pipeline in key markets including the UAE, Saudi Arabia, and Egypt. In its core UAE market, revenue expanded 11% to more than AED 22bn, driven by robust consumer demand and population growth. The group’s shopping malls and hotels segment recorded 6% revenue growth to AED 4.8bn, supported by improved tenant performance, occupancy exceeding 98%, and a 6% increase in footfall across its destinations. The real estate development arm delivered particularly strong results, with revenue rising 33% to AED 5.8bn, driven by sustained demand for residential communities. Meanwhile, the e-commerce business posted 20% revenue growth to AED 3.2bn, with quick commerce revenues jumping 38% and retail media revenues up 47%, underscoring the group’s accelerating digital transformation. During the year, Majid Al Futtaim maintained access to capital markets, successfully issuing a $500m 10-year Sukuk in October 2025, followed by a $500m hybrid bond in November. The Sukuk attracted strong investor demand, with an order book exceeding $2bn, allowing the group to achieve its tightest ever pricing for a 10-year issuance. Leadership attributed the performance to disciplined execution and the resilience of its diversified portfolio spanning retail, real estate, entertainment, and lifestyle brands. The group expanded its loyalty ecosystem, with the SHARE programme surpassing 10 million members, while launching new co-branded credit cards to enhance customer engagement and spending. With improved liquidity, a balanced debt maturity profile, and reaffirmed ‘BBB’ credit ratings with a stable outlook, Majid Al Futtaim enters its fourth decade from a position of financial strength. The company plans to sustain growth through strategic investments, including major reinvestments in flagship assets such as the transformation of the Mall of the Emirates, while continuing to focus on long-term value creation and operational excellence.