AD Ports Group Starts 2024 with Strong Performance in First Quarter

AD Ports Group today announced its financial results for the 3 months ending 31st March 2024, reporting strong operational and financial performance, with revenue more than doubling Year-on-Year to US$1.05 billion, +22% YoY on a Like-For-Like (LFL) basis after adjusting for the effect of mergers and acquisitions.

In Q1 2024, AD Ports Group completed the acquisition of APM Terminals Castellon in Spain, Sesé Auto Logistics in Europe, Karachi Gateway Terminal Multipurpose Limited (KGTML) in Pakistan, Dubai Technologies in the UAE, and GFS in the UAE. 

Both Revenue and EBITDA growth were driven by the Maritime & Shipping, Ports, Logistics, and Digital Clusters, as well as M&A effect, particularly Noatum’s acquisition, which was completed on 30th June 2023, and GFS’ acquisition, which was completed on 31st January 2024. 

The Group EBITDA margin of 26.7% is well within the 25-30% range guidance confirmed at the end of 2023 for the medium term.

AD Ports Group Announces Noatum Logistics Middle East

Despite higher depreciation and amortisation charges (+64% YoY) as well as finance costs (+70% YoY) in Q1 2024, and M&A transaction costs, Profit Before Tax and Minorities grew by an impressive 27% YoY to US$126 million.

These include US$17 million dividend income from the Group’s 10% investment in National Marine Dredging Company (NMDC).

The introduction of corporate income tax in the UAE in 2024 and the higher share of profits coming from foreign operations (also taxable) resulted in Total Net Profit growth of 10% YoY to US$109 million, and a Net Profit after Minorities of US$85.5 million.

Revenues and profits associated with recent organic and inorganic investments are yet to be fully reflected in the Group’s financial performance going forward.

Furthermore, normalisation of interest rates will also help narrow the gap between EBITDA performance and bottom-line growth.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “We are pleased to have continued the momentum of a successful 2023 through the first quarter of 2024, delivering strong financial and operational results more than doubling our year-on-year revenues and recording healthy profits.

"This performance highlights our unwavering commitment to excellence and growth as a top player in global trade and logistics.

"Guided by the vision of our wise leadership, the Group is well structured and has built solid foundations to support the ongoing diversification of its port-centric logistics global footprint in light of the ongoing global geopolitical disruptions and polarisation.

"We are confident that with assets in Pakistan, Spain, Jordan, Egypt, Congo Brazzaville, Angola, Uzbekistan, Kazakhstan, Georgia, and the UAE, AD Ports Group is well-placed to benefit in today’s challenging markets.”

On the Balance Sheet front, total assets grew 34% YoY to AED 58.3 billion in Q1 2024, while total equity increased 12% YoY to AED 25.0 billion. 

Net debt to EBITDA ratio dropped to 3.4x in Q1 2024, from 4.4x at the end of 2023, on the back of the strong quarterly EBITDA performance, which better reflected, although not fully yet, recently completed M&A transactions.

The Group’s lower leverage continues to support investment-grade credit ratings.

Read More: AD Ports Group Closes 2023 as a Year of Global Expansion