MAIR GROUP - P.J.S.C. Press Release on the Financial Results for the Period Ended March 31,2025
MAIR Group Reports an Increase in Underlying Profit as The Transformation Journey Continues
• Q1 2025 performance reflects operational discipline with a focus on profitable growth during the continued transformation of the Group.
• Strong cash position and Debt Free balance sheet positions the Group well for planned strategic growth initiatives.
ABU DHABI, UAE – 14 May 2025: MAIR Group PJSC (ADX: MAIR) ("MAIR" or the "Group"), a strategic investment company focused on grocery retail and commercial real estate in the UAE, today announced its financial results for the three-month period ended 31 March 2025.
Financial Highlights
| All figures are in AED'000 unless otherwise stated | Q1 2025 | Q1 2024 | YoY Variance (%) |
|---|---|---|---|
| Revenue | 539,940 | 593,281 | (9.0) |
| Gross profit | 176,852 | 165,119 | 7.1 |
| Profit before tax | 55,956 | 58,080 | (3.7) |
| EBITDA ¹ | 74,521 | 82,404 | (9.6) |
| Profit for the period | 51,537 | 69,537 | (25.9) |
| Underlying profit for the period ² | 51,537 | 36,512 | 41.2 |
| Earnings per share (AED) | 0.02 | 0.03 | - |
1 EBITDA (PostIFRS-16) is calculated by adding net finance costs, income tax expense, depreciation, and amortization to net profit, excluding non-operating income.
2 Underlying profit excludes one-off gains from asset disposals, discontinued operations, and adjusts for merger-related costs.
Sales Moderation as ADCOOP Rebranding Begins
Group revenue stood at AED 540 million, reflecting a 9% year-on-year decline due to the planned ADCOOP rebranding program, a reduction in less profitable wholesale, and the net impact of store closures vs. Q1 last year.
The grocery retail segment contributed AED 487 million, with like-for-like sales declining 5% as legacy stores undergo transformation. In Q1 2025, 20 stores were rebranded, with an additional 80 stores on track for completion by June 2025, marking a strategic shift towards modern and community-focused formats.
The commercial real estate segment recorded AED 53 million, up 8% year-on-year, underpinned by a 92% occupancy rate across the Group’s 70+ Makani-branded community malls.
Solid Underlying Profitability
While statutory profit for the period declined from AED 69.5 million in Q1 2024 to AED 51.5 million in Q1 2025, the Group performed well on an underlying basis with +41% underlying net profit growth. This was driven by improved operating performance and lower finance costs following the full repayment of debt. Q1 2024 enjoyed the one-off benefit from the disposal of non-core assets, partly offset by costs associated with the merger.
Strong Cash Flow and Debt Free Balance Sheet
MAIR continued to generate a strong cashflows and ended the quarter with AED 549 million of cash after repayment of all remaining external debt in full. This gives MAIR the ability to continue to invest in its strategic growth initiatives across both the grocery retail and commercial real estate segments.
Commenting on MAIR’s first quarter results, Mr. Nehayan Alameri, Managing Director and Group CEO, MAIR Group, said: “Our Q1 results reflect the early impact of our transformation strategy; streamlining operations, rebranding our store network, and unlocking synergies across our retail and commercial real estate platforms. Our strong cash flow and debt-free position allow us to reinvest confidently in building modern retail experiences and community-centered real estate. We remain committed to sustainable growth and serving the evolving needs of UAE consumers.”
