AD Ports Group delivers 66% revenue growth in Q2
- 15 Aug 2023
AD Ports Group today announced its financial results for the second quarter of 2023 (Q2’23), reporting revenue growth of 66 per cent year-on-year (YoY) to Dhs2.1 billion, driven by volume growth in key sectors, business diversification as well as local, regional, and international expansion both organically and through M&A.
Revenue growth reached 44 per cent YoY on a like-for-like basis (LFL), excluding effect from M&A activity. Maritime, Digital, and Ports Clusters were the key growth drivers with 208 per cent, 26 per cent, and 22 per cent YoY, respectively.
AD Ports Group Q2’23 EBITDA rose by 29 per cent YoY to Dhs686 million, mainly driven by Maritime, Digital, and Ports Clusters as well as acquisitions (+13 per cent YoY on a LFL basis). Change in the revenue mix, lower share of profits from JVs and associates, and ramp-up/one-off costs associated with new businesses resulted in a normalisation of EBITDA margin to 33.3 per cent for the quarter vs. 38.5 per cent in Q2 2022.
Total Net Profit increased by 3 per cent YoY to Dhs310 million in Q2’23 as EBITDA growth was diluted by the increase in depreciation and amortisation charges as well as finance costs associated with deployment of new assets with deferred revenue effect.
The Group’s Net Operating Cash Flows continued to improve to Dhs 508 million in Q2’23 while Capital Expenditures (CapEx) reached Dhs1.8 billion as per plan.
Going forward, AD Ports Group’s revenue mix is likely to be more balanced across four of its five clusters with the recently completed acquisition of Noatum, a global integrated logistics services provider with a presence in 26 countries across five continents. The Spain-headquartered company generated revenue and EBITDA of Dhs5.69 billion (EUR 1.39 billion) and Dhs433 million (EUR 106 million) in the last twelve months as of 30th June 2023, respectively, performing in line with expectations since the transaction was announced.
Based on 2023’s first six months financial performance for both AD Ports Group and Noatum, the latter accounts for over 50 per cent of AD Ports Group’s revenue and 13 per cent of its EBITDA.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “I am delighted with our strong financial performance for Q2’23.