Adnoc Distribution on Sunday reported that its first-half 2019 net profit increased by 4.3 per cent, to Dhs1.173 billion, compared with the same period last year.  Free cash flow (EBITDA minus capital expenditures) generation was up 21 per cent year-on-year to Dhs1.345 billion in the first half of 2019. For the second quarter of 2019, EBITDA was Dhs750 million and net profit was Dhs595 million, up 1.3 per cent and 2.2 per cent, respectively, compared to the second quarter of 2018.

Excluding inventory gains, underlying EBITDA for the first half of 2019 grew by 11 per cent compared to H1, 2018, to Dhs1.364 billion, driven by improved cost efficiencies and the positive results of the company’s convenience store revitalisation programme, which is on track and is contributing to improvements in gross margins and an uplift in average basket size by 6.8 per cent in the first half of 2019 compared to the first half of 2018.  Non-fuel retail gross profit increased by 10 per cent in the first half of 2019 compared to the first half of 2018. The company’s EBITDA margin has also shown continued momentum, reaching 14.4 per cent in the first half of 2019, up from 13.2 per cent during the same period last year.

Commenting on the results, Adnoc Distribution’s Acting CEO Saeed Mubarak Al Rashdi, said, “Thanks to an unwavering focus on our customers, the strength of our business model, and the successful execution of our strategic initiatives, we have once again delivered solid results in the first half of 2019. During the remainder of 2019, we are focused on the acceleration of our domestic network expansion, particularly in Dubai, and the growth of our non-fuel business to provide a superior experience to our customers.”

“Our priorities remain growth and shareholder returns underpinned by our progressive dividend policy. As previously announced, we intend to boost top-line growth in both our fuel and non-fuel businesses, and have targeted in excess of Dhs3.67 billion of EBITDA by 2023,” he added.

WAM