Abu Dhabi, UAE – AD Ports Group has recorded a 66 percent year-on-year (YoY) increase in revenue, reaching AED 2.1 billion ($571 million) in the second quarter of 2023.Â
The company attributed growth to increased volume across key sectors, successful business diversification efforts, and strategic expansions on both local and international fronts, including organic growth and mergers and acquisitions (M&A).
On a like-for-like basis (LFL), which excludes the impact of M&A activity, the revenue growth was still significant, reaching 44 percent YoY. The growth drivers were primarily the Maritime Cluster with a substantial 208 percent YoY increase, followed by the Digital Cluster with 26 percent, and the Ports Cluster with 22 percent YoY growth.
AD Ports Group’s Q2’23 EBITDA rose by 29 percent YoY to AED 686 million ($186 million), mainly propelled by growth in the Maritime, Digital, and Ports Clusters, as well as acquisitions (+13 percent YoY on an LFL basis). However, the EBITDA margin for the quarter normalized to 33.3 percent compared to 38.5 percent in Q2 2022 due to changes in revenue mix, reduced share of profits from joint ventures and associates, and costs associated with new business endeavors.
Total Net Profit increased by 3 percent YoY to AED 310 million ($84 million) in Q2’23. The growth in EBITDA was partially offset by increased depreciation and amortization charges, along with finance costs related to the deployment of new assets with deferred revenue effect.
AD Ports Group’s Net Operating Cash Flows continued to improve, reaching AED 508 million ($138 million) in Q2’23, while Capital Expenditures (CapEx) amounted to AED 1.8 billion ($490 million) in line with the company’s plan.
Following the recent acquisition of Noatum, a global integrated logistics services provider with operations in 26 countries across five continents, AD Ports Group’s revenue mix is expected to be more balanced across four of its five clusters. Noatum, headquartered in Spain, 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 June 30, 2023, respectively.
Based on the financial performance of both AD Ports Group and Noatum in the first six months of 2023, Noatum now contributes to 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, “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.”