AD Ports Group has unveiled its financial outcomes for the second quarter of 2023 (Q2’23), revealing a remarkable 66% increase in revenue YoY to AED 2.1B. Expanded activity in key sectors, business diversification, and local as well as international expansion drove this growth, achieved through both organic expansion and mergers and acquisitions.
On a like-for-like (LFL) basis, which excludes the influence of M&A activities, revenue growth was still impressive at 44% YoY. Significant performances in the Maritime, Digital, and Ports Clusters drove this growth, with YoY growth rates of 208%, 26%, and 22%, respectively.
During Q2’23, AD Ports Group’s EBITDA also experienced a boost, increasing by 29% YoY to AED 686M. The Maritime, Digital, and Ports Clusters, along with acquisitions, contributed to this surge, though there was a margin normalization to 33.3% compared to 38.5% in Q2 2022. This was due to changes in revenue composition, the reduced share of profits from joint ventures and associates, and costs related to new business ventures.
Even though the Group’s total net profit experienced a 3% YoY growth, reaching AED 310M in Q2’23, the rise in EBITDA faced some moderation due to increased depreciation, amortization expenses, and finance costs connected with recently deployed assets, leading to deferred revenue effects.
In terms of cash flow, the Group’s net operating cash flows showed improvement, reaching AED 508M in Q2’23, while Capital Expenditures remained consistent with the plan, totalling AED 1.8M, according to WAM.
Resilience and Future Growth
Looking ahead, AD Ports Group foresees a more balanced revenue distribution across its five clusters due to the acquisition of Noatum, a global logistics services provider with a presence in 26 countries on five continents. This Spanish-based company achieved AED 5.69B (EUR 1.39B) in revenue and AED 433M (EUR 106M) in EBITDA over the last twelve months leading up to June 30, 2023, aligning with expectations since the acquisition announcement.
Based on the financial performances of both AD Ports Group and Noatum for the first half of 2023, Noatum now contributes to over 50% of AD Ports Group’s revenue and 13% 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 2.1B, 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 686M, 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 1.8B in Q2’23, which will drive our future growth.”