AD Ports Group has announced its financial results for the three months ending 31 March 2024, reporting strong operational and financial performance.
According to AD Ports, revenue more than doubled year on year (YoY) to AED3.89 billion ($1 billion), up 22 per cent YoY on a Like-For-Like (LFL) basis after accounting for the impact of mergers and acquisitions.
In Q1 2024, AD Ports acquired APM Terminals (APMT) Castellon in Spain, Sesé Auto Logistics in Europe, Karachi Gateway Terminal Multipurpose Limited (KGTML) in Pakistan, Dubai Technologies in the UAE, and GFS in the UAE.
AD Ports noted that The Maritime & Shipping, Ports, Logistics, and Digital Clusters drove revenue and EBITDA growth, as did M&A activity, particularly Noatum’s acquisition on 30 June 2023, and GFS’ purchase on 31 January 2024.
The Group EBITDA margin of 26.7 per cent is well within the 25-30 per cent range guidance confirmed at the end of 2023 for the medium term.
READ: AD Ports records 116 per cent revenue growth as 2023 closes
Despite higher depreciation and amortisation charges (+64 per cent YoY), finance costs (+70 per cent YoY), and M&A transaction costs in Q1 2024, Profit Before Tax and Minorities increased by an impressive 27 per cent YoY to AED462 million ($125 million), including AED62 million ($16 million) in dividend income from the Group’s 10 per cent investment in National Marine Dredging Company (NMDC).
The introduction of corporate income tax in the UAE in 2024, along with a bigger percentage of revenues from international activities (which are also taxed), led to a 10 per cent YoY increase in Total Net Profit to AED400 million ($108 million), and a Net Profit after Minorities of AED314 million ($85 million).
Revenues and earnings from recent organic and inorganic investments have yet to be fully reflected in the Group’s financial performance going forward. Furthermore, the normalisation of interest rates will assist in closing the gap between EBITDA performance and bottom-line growth.
READ: AD Ports reports $3 billion revenue in 2023
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “We are pleased to have continued the momentum of a successful 2023 through the first quarter of 2024, delivering strong financial and operational results more than doubling our year-on-year revenues and recording healthy profits.
“This performance highlights our unwavering commitment to excellence and growth as a top player in global trade and logistics.
“Guided by the vision of our wise leadership, the Group is well structured and has built solid foundations to support the ongoing diversification of its port-centric logistics global footprint in light of the ongoing global geopolitical disruptions and polarisation.
“We are confident that with assets in Pakistan, Spain, Jordan, Egypt, Congo Brazzaville, Angola, Uzbekistan, Kazakhstan, Georgia, and the UAE, AD Ports Group is well-placed to benefit in today’s challenging markets.”
