AD Ports Group, an enabler of integrated trade, transport and logistics solutions, said its profit before tax and minorities grew 45% YoY to AED2.04 billion ($555.4 million) in 2024, whereas group total net profit increased 31% YoY to AED1.78 billion ($484.62 million), implying a net profit margin of 10.3%. 

 

Revenue increased 48% YoY to AED17.29 billion fuelled by M&A contribution with healthy double-digit organic growth across the group’s five business clusters ecosystem.

 

AD Ports Group’s bottom-line performance was strong despite the introduction of corporate income tax of 9% in the UAE in 2024, the group said.

 

The year was characterised by solid organic growth operationally and financially, fuelled by inorganic growth primarily coming from Noatum and GFS, a strengthened balance sheet with lower leverage and a stronger liquidity position, and significantly improved cash flow generation with the group reaching positive Free Cash Flow to the Firm (FCFF) two quarters in a row in Q3 and Q4 2024, it said.  

 

Financial performance highlights for FY 2024

* EBITDA recorded an impressive 69% YoY growth to AED4.51 billion, implying an EBITDA margin of 26.1% (vs. 22.8% in 2023, +320 bps YoY). Strong operating performance was driven by the Maritime & Shipping, Ports, and Logistics Clusters.

* Net profit attributable to owners grew 24% YoY to AED1.33 billion led by strong operating performance.

* Balance Sheet: Total assets grew by 15% YoY to AED63.70 billion in 2024 while total equity increased 15% YoY to AED27.83 billion. Significant growth in operating profits together with plateauing debt levels led to a 110bps reduction in Net Debt/EBITDA ratio to 3.3x as of December 2024, down from 4.4x in 2023. AD Ports Group strengthened its liquidity position with a cash & equivalents balance of AED2.83 billion at end of 2024 driven by earnings growth and an additional liquidity booster through the refinancing and upsizing of its bank facilities.

* Capital Expenditures: The group’s organic Capital Expenditures (CapEx) declined for the third consecutive year, reaching AED4.1 billion in 2024, AED605 million or 13% lower than in 2023.

* Cash Flow Statement: AD Ports Group was Free Cash Flow positive on a quarterly basis for the second time in a row in Q4 2024 on the back of strong EBITDA growth, high cash conversion and lower capital spending. Annual Cash Flow from Operations grew almost three-fold to AED3.91 billion in 2024, vs. AED1.47 billion in 2023.

 

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, said: “2024 marked another year of record revenue and earnings with the Group delivering on its primary mission to enable trade. Not only did we deploy an agile, effective business strategy that translated geopolitical uncertainty in some regions into record revenue and profit, but we also leveraged the integration of our recent acquisitions to attain a new level of efficiency, international significance, and to maximise the financial synergies from the consolidation of the acquired entities. 

 

"Our Group, in line with the vision of our wise leadership, grew more global and became more cohesive and profitable as we expanded our reach to more than 50 countries on five continents, while continued making large investments in our core infrastructure in Abu Dhabi, positioning it at the forefront of global trade and advancing the UAE’s economic diversification and the growth of a green, sustainable economy. AD Ports Group enters 2025 with strong momentum, despite ongoing regional macroeconomic and geopolitical disruptions, as we continue our expansion and extract further value from the synergies of our group.” - TradeArabia News Service