Peak earnings season

SPINNEYS-

Spinneys’ net income grew 12.8% y-o-y to AED 74.7 mn in 1Q 2024, according to the company’s first financial statements (pdf) filed with the DFM since listing last week. Growth came despite one-off IPO-related costs of AED 10 mn and pre-store opening expenses in Saudi Arabia, and was driven by efficient sourcing and supply chain capabilities and a successful private label strategy, the company said in a separate earnings release (pdf).

The company booked AED 814.8 mn in revenues, climbing 10.9% y-o-y on the back of better performance across its retail segment, which saw transactions up by 9.5% y-o-y to 802k. Revenue improvement was also boosted by heightened customer demand and a 10.9% y-o-y increase in e-commerce sales, the company said.

Looking ahead: The company plans to launch several new stores and concepts in 2024, including three new stores in the UAE, and Spinneys’ first standalone dining concept — dubbed The Kitchen — in 1H 2024. Spinneys will also debut a La Strada store in Saudi Arabia in 1H 2024, with three more stores slated to launch by the end of the year.

REMEMBER- Spinneys debuted on DFM this month: Al Seer Group listed 900 mn of its shares — equivalent to a 25% stake — in Spinneys on the DFM earlier in May, raising AED 1.38 bn after receiving more than AED 71 bn in orders.

EMAAR-

A solid quarter for Emaar: Real estate developer Emaar Properties saw its net income before tax grow 16% y-o-y to AED 4.3 bn in 1Q 2024 as the real estate sector continued to see robust demand, according to its earnings release (pdf). Revenues came in at AED 6.7 bn, marking a c. 6% y-o-y increase. Growth in retail sales and tourism demand also boosted performance.

The developer made a record AED 13.5 bn in property sales during the quarter, marking a 47% y-o-y growth. Its revenue backlog from property sales rose to AED 78.3 bn.

REMEMBER- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

How Emaar’s subsidiaries performed: Emaar Development’s revenues reached AED 3.5 bn during the quarter, while Emaar Malls’ posted AED 1.4 bn in revenues.

AD PORTS-

Abu Dhabi-based port operator AD Ports Group recorded a 10% y-o-y increase in net income to AED 400.0 mn in 1Q 2024, according to an earnings release (pdf). The company’s revenue more than doubled to AED 3.9 bn, marking a 22% y-o-y increase after adjusting for the impact of M&A.

Breakdown: Revenues from the group’s Ports Clusters rose 80% y-o-y to AED 565 mn, which AD Ports attributed to growth in port leases, general cargo handling, and Ro-Ro handling. The maritime & shipping division’s revenue rose 92% y-o-y to AED 1.76 bn, making it the largest contributor of revenue and EBITDA, according to the release. Meanwhile, the logistics segment’s revenue rose seven-fold to AED 1.08 bn, boosted by recent acquisitions and a new logistics JV in Uzbekistan.

Key acquisitions drove AD Ports’ earnings growth: Strategic acquisitions, including Noatum Logistics, Sesé Auto Logistics, and the Global Feeder Shipping in late January, all contributed to higher revenues during the quarter.

Looking ahead: “Going forward, we plan to commercialize and drive up utilization of existing and upcoming assets, maximizing their value, while we focus on consolidating our position in Abu Dhabi across all clusters, as foreign direct investments in the UAE continue to soar, Group Chief Strategy and Growth Officer Ross Thompson said.

FERTIGLOBE-

Urea and ammonia exporterFertiglobe’s adjusted net income fell 11.9% y-o-y in 1Q 2024to USD 119 mn on the back of lower prices and market volatility, according to an earnings release (pdf). The company’s revenues also dipped 20% y-o-y to USD 552 mn, with decreasing crop and energy prices and reduced imports from India and Europe impacting performance.

On the bright side: Sales volumes were up 5% y-o-y, driven by increased production and efficient inventory management, with ammonia sales rising 22% and urea sales rising 1%, Fertiglobe CEO Ahmed El Hoshy said. Adnoc’s acquisition of OCI’s 50% stake in Fertiglobe, set to be completed this year, is also expected to drive the company’s growth into new markets.

Looking ahead: Adnoc’s planned acquisition of OCI’s 50% stake in Fertiglobe is expected to close this year, Fertiglobe said. The transaction “supports Fertiglobe’s growth strategy” and is set to support the company’s expansion into new markets and “[unlock] further potential in its core products of urea and ammonia.”

YAHSAT-

Al Yah Satellite Communications Company’s (Yahsat) net income attributable to shareholders rose 96% y-o-y to AED 185.9 mn in 1Q 2024, according to the company’s financials (pdf). The company posted revenue growth of 1% y-o-y amounting to AED 371 mn for the period.

Infrastructure and managed solutions drove growth: Yahsat attributed its strong quarterly performance to 1% y-o-y growth in its infrastructure operations, which supply long-term indexed communications capacity to the government, as well as 19% y-o-y growth in managed solutions, which deliver satellite comms to government entities, according to its earnings release (pdf).

Looking ahead: The company is currently working towards finalizing its USD 5.1 bn capacity and managed services mandate contract with the government, along with procuring two new satellites, Al Yah 4 and Al Yah 5, according to Yahsat CEO Ali Al Hashemi. The company is also “working on completing the procurement of Thuraya 4, to be launched into space in the second half of this year.”

Remember- The company is also looking to finalize its merger with Bayanat in 2H 2024, after the two companies’ boards signed off on the merger in April.

DUBAI INVESTMENTS-

Dubai Investments net income fell 61.8% y-o-y to to AED 120 mn 1Q 2024 due to an unfavorable base effect on the back of a one-off gain on the fair value of investment properties in 2023, according to the company’s earnings release (pdf). Excluding the one-off gain, Dubai Investments’ bottom line would have risen 90% y-o-y during the quarter. The company recorded AED 791.9 mn in revenues during the quarter, down 21.6% y-o-y.

Looking ahead: “The group’s dedication to prudent portfolio growth and strategic asset expansion remains unwavering, as evidenced by the upcoming launch of DIP Angola that promises infrastructure development and economic growth in Africa,” the company said. The company will focus on rolling out key real estate projects initiated in the previous year.

E7-

E7 Group had a stable quarter: Printing company E7’s net income after tax increased 29.4% y-o-y to AED 26.6 mn for 1Q 2024, according to the company’s financials (pdf). The company’s revenues remained somewhat stable, inching down 1% y-o-y to AED 126 mn due primarily to a revised delivery schedule of a key commercial printing contract, according to its earnings release (pdf). Revenues from the contract will be realized in 2Q 2024.

Refresher: E7 reported a net loss of 51.1 mn in 2023, compared to a net income of AED 67.9 mn in 2022. Net income was influenced by E7’s listing on the ADX as a de-spac entity, the region’s first. The company’s board approved a 1:10 share split back in April to help attract retail investors and “indirectly improve” liquidity.

BAYANAT-

Geospatial services provider Bayanat saw its net income after tax fall 53% y-o-y to AED 10.3 mn in 1Q 2024, according to its financials (pdf). Bayant saw its revenues climb 12% y-o-y to AED 113.3 mn for the quarter, driven by “the expansion of its market presence and its strong product range and service offerings,” it said in its earnings release (pdf).

Looking ahead: Bayant will continue to work with Yahsat to finalize their merger, creating AI-powered space tech firm Space42, set for completion in 2H 2024.

SHARJAH CEMENT AND INDUSTRIAL DEVELOPMENT-

Sharjah Cement turns to the black in 1Q: Sharjah Cement and Industrial Development turned to profitability in 1Q 2024, reporting a net income of AED 8.4 mn for the quarter, compared to the AED 7.4 mn loss incurred during the same period last year, according to the company’s earnings release (pdf). The company attributed the recorded income to lower raw material and energy costs, along with higher investment returns. Sharjah Cement saw its revenues rise to AED 167 mn during the quarter, up 6% y-o-y, according to the company’s financial statements (pdf).

TABREED-

District cooling firm Tabreed’s net income after tax fell 52% y-o-y to AED 112 mn in 1Q 2024 on the back of one-off gains in the same period last year,according to its earnings release (pdf). Tabreed posted AED 122 mn in net income before tax, marking a 4% y-o-y rise during the quarter. The district cooling company’s revenues remained relatively flat in 1Q at AED 468 mn, up 0.8% y-o-y from the AED 464 mn reported during the same period last year.

INVESTCORP CAPITAL-

Investcorp Capital’s bottom line dropped 35% y-o-y to USD 49 mn in 3Q of its 2023/24 fiscal year, owing to lower value gains and performance fees, which it attributes to “the prevailing market conditions,” according to its earnings release (pdf). The company saw flat growth in its revenue from capital financing services, logging USD 33 mn during the quarter, compared to USD 34 mn in the same period the previous year, while its revenue from capital deployment tumbled 44% y-o-y to USD 29 mn. Investcorp’s fiscal year runs from July to June.

ARAM GROUP-

ARAM Group saw its net income rise 56% y-o-y to AED 455k in 1Q 2024, driven by an appreciation of its share investment in Kuwait Hotel, according to the company’s earnings release (pdf). The investment company’s revenues remained relatively flat at AED 2.4 mn — 97% of its budgeted revenue — during the period.

ARAM achieved its highest occupancy level recorded at 96.54%, up nearly eight percentage points from the previous year, but growth was hindered by its limited number of available rental units following the disposal of its Industrial Area 3 property.

Looking ahead: The company plans to roll out “continuous improvements to current facilities and strategic projects in the pipeline,” it said. It will also focus on diversifying its portfolio, and is in the process of setting up new investment plans and strategic initiatives to expand operations into high-yield business segments.

NAEEM HOLDING FOR INVESTMENTS-

Naeem Holding for Investments turned to the black in 1Q 2024, reporting a bottom line of USD 492.8k over the period, compared to the USD 37k loss recorded in the same quarter last year, according to its financial statements (pdf). Its top line stood at USD 3.4 mn during the first three months of 2024, reflecting an increase of 59% y-o-y during the quarter.

NATIONAL CEMENT COMPANY-

Dubai’s National Cement posted a 155% y-o-y increase in net income to AED 129.5 mn in 1Q 2024, according to the company’s unaudited financials (pdf). The cement manufacturer’s revenues rose 30.5% y-o-y to AED 55.3 mn.

UNIKAI FOODS-

Dubai-based Unikai Foods reported a bottom line of AED 4.4 mn in 1Q 2024, up 712% y-o-y, according to the company’s unaudited financials (pdf). The company’s revenues increased 23.1% y-o-y to AED 96.5 mn, according to the statement.

GULF MEDICAL PROJECTS-

Gulf Medical Projects saw a 39% y-o-y jump in its bottom line, reaching AED 23 mn in 1Q 2023, according to the hospital operator’s earnings release (pdf). The company logged AED 167 mn in revenues for the period, marking a 23% y-o-y increase.

EMIRATES INVESTMENT BANK-

Emirates Investment Bank’s bottom line fell 8.5% y-o-y to AED 31.1 mn in 1Q 2024, according to its consolidated financials (pdf). The investment bank’s interest income rose 35.5% y-o-y to AED 30.8 mn, while its net income from both interest and investments more than doubled to AED 41.4 mn, posting a 117.4% y-o-y growth.