AD Ports Group reports net profit of AED 1.78 bln

AD Ports Group has announced its preliminary unaudited financial results for the fourth quarter and full year ending December 2024, and saw revenue increase 48 per cent year-on-year (YoY) to AED 17.29 billion.

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.

The revenue growth was fuelled by M&A contribution with healthy double-digit organic growth across the Group’s five business clusters ecosystem.

EBITDA recorded an impressive 69 per cent YoY growth to AED 4.51 billion, implying an EBITDA margin of 26.1 per cent (vs. 22.8 per cent in 2023, +320 bps YoY). Strong operating performance was driven by the Maritime & Shipping, Ports, and Logistics Clusters.

Profit Before Tax and Minorities grew 45 per cent YoY to AED 2.04 billion in 2024, whereas Group Total Net Profit increased 31 per cent YoY to AED 1.78 billion, implying a Net Profit margin of 10.3 per cent. AD Ports Group’s bottom-line performance was strong despite the introduction of corporate income tax of nine per cent in the UAE in 2024.

Net Profit Attributable to Owners grew 24 per cent YoY to AED 1.33 billion led by strong operating performance.

Total Assets grew by 15 per cent YoY to AED 63.70 billion in 2024 while Total Equity increased 15 per cent YoY to AED 27.83 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 AED 2.83 billion at end of 2024 driven by earnings growth and an additional liquidity booster through the refinancing and upsizing of its bank facilities.