EBIT growth of 18.2%
DP World records strong financial results in the first half
DP World aims to remove obstacles and improve connectivity in fast-growing trade corridors such as Asia, the Middle East and Africa.
From the source
Sultan Ahmed bin Sulayem: "We are optimistic about the sector's performance in the medium and long term, and the ability of (DP World) to continue to achieve sustainable returns."
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DP World Limited announced strong financial results for the six months ending June 30, 2021, with EBITDA growing by 18.2% year-on-year, and profit attributable to company owners increasing by 51.9%.
“DP World” confirmed that the expectations in the near term are still positive, with optimism about the sector’s performance in the medium and long term, and its ability to continue achieving sustainable returns, despite the “Covid-19” pandemic, and the geopolitical uncertainty.
financial results
In detail, DP World Limited announced strong financial results for the six months ending June 30, 2021, with earnings before interest, taxes, depreciation and amortization growing by 18.2% on an annual basis.
According to the results, the value of revenues amounted to $4,945 million, achieving a growth of 21.3% supported by acquisitions and strong growth in India, Australia and the United Kingdom.
Revenue increased by 9.0% on a like-for-like basis.
The “adjusted earnings before interest, taxes, depreciation and amortization” amounted to $1813 million, while the “adjusted earnings before interest, taxes, depreciation and amortization margin” amounted to 36.7%.
Adjusted EBITDA increased by 18.2%, and adjusted EBITDA margin (on a like-for-like basis) was 38.5%.
The results showed an increase in the profits of the company's owners to $475 million, while the profits of the company's owners before items that are separately disclosed increased by 51.9% according to the announced reports, and increased by 39.4% on a like-for-like basis.
cash generation
The financial results revealed a strong cash generation performance, as the cash flow generated from operations continued, and recorded $1,490 million, during the first half of 2021, compared to $1,124 million during the same period of 2020.
The debt ratio (the ratio of net debt to annualized adjusted earnings before interest, tax, depreciation and amortization) decreased to 3.5 times (before the implementation of IFRS 16), compared to 3.7 times in fiscal year 2020.
Net debt (after the adoption of IFRS 16) was 4.0 times, compared to 4.3 times in fiscal year 2020.
The results confirmed that DP World still enjoys an outstanding credit rating, as Fitch International maintained its rating of the company with a “stable” outlook at the “BBB-” investment category, while Moody’s maintained its rating at “Baa3” with a “stable” outlook. ».
powerful results
“We are pleased with the strong results in the first half, with EBITDA-adjusted growth of 18.2% and profit attributable to company owners increasing by 51.9%,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.
"This significant growth is further evidence that we are operating in the right locations, and we expect to continue to strike a balance between growth and flexibility, by focusing on goods going directly from the country of origin to the destination," he added.
Bin Sulayem continued: “In recent years, we have seen merchandise owners respond positively to our integrated and comprehensive product offerings, and we aim to continue our quest to enable trade.
The recently announced acquisitions of Imperial Logistics and Synchron have created value-added potential in high growth sectors and markets, allowing us to offer a more robust suite of supply chain solutions.”
He pointed out that by utilizing best-in-class infrastructure across inland logistics, ports, container terminals, economic zones, and a marine logistics network, DP World aims to remove obstacles and improve connectivity in fast-growing trade corridors, such as Asia and the Middle East. and Africa.
recycle capital
Bin Sulayem confirmed the continued positive progress in the capital recycling program, along with achieving strong operational performance. and global free zones) with less than four times the net debt-to-earnings-adjusted-earnings ratio (before applying IFRS 16).
In general, the near-term outlook remains positive, and although we recognize that the (Covid-19) pandemic and geopolitical uncertainty could once again impede the global economic recovery, we remain optimistic about the sector's performance in the long run. The medium and long term, as well as the ability of (DP World) to continue to achieve sustainable returns.”
selective investment
DP World invested $687 million in capital expenditures across its portfolio during the first half of the year.
Directing capital expenditures for the current year amounted to approximately $1.2 billion, with planned investments in the UAE, Canada, Jeddah (Saudi Arabia), Berbera (Somaliland), Sukhna (Egypt), Luanda (Angola), B&O Ferries, and London Gateway. (UK), and Callao (Peru).
DP World indicated its acquisition of Syncreon and Imperial Logistics, stressing that the acquisitions have achieved value-added capabilities in fast-growing markets and sectors, and the company has added long-term relationships with cargo owners.
positive outlook
DP World confirmed that its portfolio achieved a strong performance in the first half of 2021, with rising consumer spending and a recovery in global trade.
She explained that the expectations in the near term are still positive, with expectations that the growth rates will be moderate.
DP World stated that it intends to continue focusing on providing integrated smart solutions in the field of supply chains to cargo owners, in order to increase growth and revenues.
• Revenues grow by 21.3%, supported by acquisitions and strong growth in India, Australia and the UK.
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