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ABU DHABI / WAM
AD Ports Group on Tuesday announced its financial results for the second quarter of 2023 (Q2’23), reporting revenue growth of 66 percent year-on-year (YoY) to AED 2.1 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 percent 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 percent, 26 percent, and 22 percent YoY, respectively.
AD Ports Group Q2’23 Ebitda rose by 29 percent YoY to AED 686 million, mainly driven by Maritime, Digital, and Ports Clusters as well as acquisitions (+13 percent 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 percent for the quarter vs. 38.5 percent in Q2 2022. Total Net Profit increased by 3 percent YoY to AED 310 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 AED 508 million in Q2’23 while Capital Expenditures (CapEx) reached AED 1.8 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 AED 5.69 billion (EUR 1.39 billion) and AED 433 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 percent of AD Ports Group’s revenue and 13 percent 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. With a remarkable 66 percent YoY revenue growth to AED 2.1 billion, we are successfully executing our diversification strategy and leveraging synergies from our recent acquisitions, paving the way for continued growth and value creation for our stakeholders, driven by the support of our wise leadership.”
Martin Aarup, Group Chief Financial Officer, AD Ports Group, said, “AD Ports Group’s solid financial performance in Q2’23, evidenced by a 29 percent YoY increase in EBITDA to AED 686 million, showcases our resilient growth journey driven by our expanded service offering and geographic diversification. At the same time, we continue to invest large amounts of CapEx, AED 1.8 billion in Q2’23, which will drive our future growth.”