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Earnings season continues with another Etihad, Aramex, and SAL reporting their 1Q 2024 results. First up, Etihad Airways has posted its 1Q financials as it gears up for IPO.
The flagship carrier saw its income after tax rise 791% y-o-y to a record AED 526 mn in 1Q 2024, according to its earnings release. Etihad booked AED 5.7 bn in revenues for the quarter, up 21% y-o-y, driven by 41% increase in passenger numbers.
What they said: “We are pleased to report a strong start to the financial year 2024, with our first quarter earnings equivalent to our total net income for the entire financial year 2023 as we continue our margin expansion journey. We have maintained our resilience and our focus on customer service and growth while continuing to improve our commitment to efficiency,” Etihad CEO Antonoaldo Neves said.
Background- Etihad parent company ADQ is eyeing potentially going after both a traditional IPO and direct listing on the ADX at the end of the year, with the offering expected to raise as much as USD 1 bn. The airline tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners as advisors last week.
ARAMEX-
UAE-based logistics outfit Aramex’s net income rose 95% y-o-y to AED 46.6 mn in 1Q 2024, according to an earnings release (pdf).The company recorded AED 1.54 bn in revenues, up 8% y-o-y, buoyed primarily by new clients, seasonal trends, and improved sales, especially in international and domestic express operations.
Behind the numbers: Aramex attributes the boosted topline to new clients, seasonality, and better sales. International Express and Domestic Express operations in particular were a strong driver for the improved performance. The company also saw gains in bottomline performance on the back of moves to improve sales and operational efficiency, Aramex said.
The breakdown: Aramex’s International Express operations were a key driver for growth, with the unit’s revenues seeing 14% y-o-y growth to AED 645.8 mn in 1Q 2024. The outfit’s Domestic Express segment saw a 5% y-o-y boost in revenues to AED 380 mn, attributed to an improved turnaround strategy for the Oceania region and surging e-commerce activity in several markets. Revenues from Aramex’ Freight Forwarding unit increased 3% y-o-y to AED 398.5 mn, on the back of double digit growth in air, sea, and land freight volumes. Aramex’ Logistics and Supply Chain Solutions segment saw a negligible decline in revenues to AED 106.6 mn, due to losses attributed to a currency devaluation in Egypt.
Looking ahead: Aramex sees continued y-o-y volume growth in 2Q and 3Q 2024, bearing in mind seasonality, CEO Othman Aljeda says. The outfit also looks to pay down some USD 50 mn to USD 70 mn in debts in 2024, in a bid to pare down expenses for debt servicing, Aljeda added.
SAUDI LOGISTICS SERVICES-
Saudi Logistics Services’ net income doubled y-o-y to SAR 208.5 mn in 1Q 2024, and revenues rose 33% to SAR 452.5 mn, according to the shareholders relations prospectus (pdf). The growth in top line was attributed to a 24% increase in booked business from the cargo handling segment — which accounted for 81% of overall revenues — along with an 89% hike in revenues from the logistics solutions segment which accounts for the remainder of overall revenues.
