AD Ports Group reports annual financial growth

AD Ports Group has announced its preliminary unaudited financial results for the fourth quarter and full year ending 31 December 2024.

The year was marked by robust organic growth, both operationally and financially, supported by inorganic growth driven by acquisitions, including Noatum and GFS, according to the company’s statement.

AD Ports reported a stronger balance sheet with lower leverage, enhanced liquidity, and improved cash flow generation, achieving positive Free Cash Flow to the Firm (FCFF) in both Q3 and Q4 2024.

The Group’s revenue rose by 48% year-on-year to approximately US$4.71 billion in 2024, bolstered by contributions from mergers and acquisitions, alongside healthy double-digit organic growth across the company’s five business clusters. Moreover, the company’s EBITDA experienced a growth of 69% year-on-year, reaching US$1.23 billion, reflecting an EBITDA margin of 26.1%, up from 22.8% in 2023—a 320 basis point improvement.

“The strong operating performance was mainly driven by the Maritime & Shipping, Ports, and Logistics Clusters, according to AD Ports.

Additionally, the Group’s profit before tax and minorities grew by 45% year-on-year to US$556 million, while the total net profit increased by 31% to US$485 million, reflecting a net profit margin of 10.3%.

This strong bottom-line performance was achieved despite the introduction of a 9% corporate income tax in the UAE in 2024, noted AD Ports in its statement.

On the balance sheet, total assets grew by 15% year-on-year to US$17.34 billion in 2024, while total equity rose to US$7.58 billion, translating to a 15% increase. Operating profit growth, combined with stable debt levels, resulted in a reduction in the Net Debt/EBITDA ratio to 3.3x in December 2024, down from 4.4x in 2023.

The Group also strengthened its liquidity position, ending the year with US$771 million in cash and equivalents, supported by earnings growth and additional liquidity through the refinancing and upsizing of its bank facilities. At the same time, capital expenditures (CapEx) declined for the third consecutive year, totalling US$1.12 billion in 2024, translating to a decline of US$165 million or 13% from 2023.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, commented: “2024 marked another year of record revenue and earnings with the Group delivering on its primary mission to enable trade. Not only did we deploy an agile, effective business strategy that translated geopolitical uncertainty in some regions into record revenue and profit, but we also leveraged the integration of our recent acquisitions to attain a new level of efficiency, and international significance, and to maximise the financial synergies from the consolidation of the acquired entities.”

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