AD Ports Group Reports Stellar Financial Results for 2024: A Testament to Resilience and Strategic Growth
AD Ports Group has unveiled its preliminary, unaudited financial results for the fourth quarter and full year, concluding on December 31, 2024, showcasing significant growth despite ongoing global economic challenges. The figures, released recently, illustrate not only resilience in the face of adversity but also the effectiveness of an agile and proactive business strategy in a shifting geopolitical landscape.
The Group reported a remarkable 45% increase in Profit Before Tax and Minorities, which rose to AED 2.04 billion (6.3 million) for the year. Furthermore, the Total Net Profit experienced a 31% ascent, reaching AED 1.78 billion (4.6 million), resulting in a Net Profit margin of 10.3%. This robust bottom line was particularly noteworthy as it occurred amidst the introduction of a 9% corporate income tax in the United Arab Emirates (UAE) during the same year, indicating the Group’s strong operational performance and strategic foresight.
Revenue figures soared by 48% year-over-year to AED 17.29 billion, propelled by a combination of fruitful mergers and acquisitions along with impressive organic growth across the Group’s diversified business clusters. For instance, the integration of Noatum and GFS, acquired in previous fiscal periods, played an instrumental role in augmenting revenue streams and operational efficiency. The strategic consolidation of these entities has facilitated not only operational synergies but also enhanced the Group’s global footprint, allowing it to reach over 50 countries across five continents.
EBITDA Surges by 69%: A Closer Look
One of the standout metrics in AD Ports Group’s financial report was the EBITDA, which surged by an impressive 69% year-over-year, reaching AED 4.51 billion (.2 billion). This performance corresponds to an EBITDA margin of 26.1%, up from 22.8% in 2023, marking an increase of 320 basis points. This surge in profitability can be attributed to exceptional performance within key sectors including Maritime & Shipping, Ports, and Logistics.
Such growth reflects the Group’s commitment to enhancing operational efficiency and expanding its service capabilities, thus solidifying its standing as a vital player in the maritime and logistics sectors.
Asset Management and Financial Stability
The financial stability of AD Ports Group is underscored by a 15% year-over-year increase in Total Assets, now valued at AED 63.70 billion. Similarly, Total Equity attained AED 27.83 billion, showing consistent growth across the balance sheet. Maintaining steady debt levels while achieving significant operating profits contributed to a reduction in the Net Debt/EBITDA ratio, which fell to 3.3 times as of December 2024, down from 4.4 times in the previous year. Such a decrease speaks volumes about the Group’s prudent financial management and investment strategy.
As the Group enhances its cash reserves, it reported a closing cash and cash equivalents balance of AED 2.83 billion by year-end. This strategic liquidity position has been bolstered not only by robust earnings growth but also through refinancing and increased bank facilities, ensuring that the Group is well-prepared to capitalize on future opportunities.
Leadership's Vision for Sustainable Growth
Captain Mohamed Juma Al Shamisi, the Group’s Managing Director and CEO, articulated the company’s strategic objectives, noting, “2024 marked another year of record revenue and earnings with the Group delivering on its primary mission to enable trade. Our agile and effective business strategy allowed us to navigate geopolitical uncertainties while achieving record figures in revenue and profitability.”
Underlining the vision of Abu Dhabi’s leadership, Al Shamisi emphasized the Group’s commitment to infrastructure investments, which are critical in positioning Abu Dhabi as a leading hub in global trade. By prioritizing investments in core infrastructure, the Group not only contributes to the UAE’s economic diversification efforts but also plays a pivotal role in fostering a green and sustainable economy — essential in today’s increasingly eco-conscious world.
Conclusion: A Pivotal Year Ahead
As AD Ports Group looks towards the future, it is poised to expand its influence within the global maritime and logistics markets while remaining attuned to regional economic drivers. The culmination of strategic growth, enhanced operational capacity, and a resilient financial framework positions the Group to meet new challenges head-on while pursuing ambitious goals for continued success.
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