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Majid Al Futtaim recorded a 12% y-o-y increase in net income to AED 2.7 bn, according to the company’s earnings release. The company’s revenues rose 1% y-o-y to AED 34.5 bn during the year. The group’s total assets rose to AED 69.7 bn in 2023, up from 66.1 bn in 2022.
Robust property earnings helped offset a decline in retail: Majid Al Futtaim’s properties revenue rose 20% y-o-y to AED 6.9 bn, driven by record mall footfall in the UAE and the Tilal Al Ghaf deveopment’s success and a 4% y-o-y increase in hotel revenues. Retail revenues, on the other hand, fell 4% y-o-y to AED 24.7 bn due to currency devaluations and a “shift in consumer sentiment” due to geopolitical tensions.
Consumer boycotts are behind the lackluster retail performance: The company’s properties division said in its annual risk report that it has worked on risk controls to allow it to navigate a “challenging geopolitical landscape and global economic outlook,” Bloomberg reported, adding that it cited risks like “conflicts and consumer boycotts,” which could “disrupt our shopping malls, hotels and community projects.” The company operates French supermarket chain Carrefour, which was subject to consumer boycotts due to its entry into Israel, in the Middle East.
Dubai-based port operator DP World’s bottom line for 2023 dropped 17.7% y-o-y to USD 1.51 bn, according to its financial statements (pdf). The company’s top line saw a 6.6% y-p-y boost during the period to USD 18.25 bn, the statement said.
The company attributed the stronger topline to gains from Drydocks World, full year consolidation benefits on the back of its 2022 acquisition of Imperial Logistics, as well as like-for-like growth in the outfit’s core ports, terminals, and logistics operations. Meanwhile the decline in net income was mainly attributable to greater finance costs, DP World said.
Looking ahead: Despite “resilient” performance in 2023, the outlook remains uncertain, DP World said, citing geopolitical and macroeconomic headwinds.
