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ABU DHABI NATIONAL HOTELS-
Abu Dhabi National Hotels (ADNH) Group’s bottom line jumped 590% y-o-y to AED 1.02 bn in 1Q 2024, according to the company’s earnings release (pdf). The group’s net income for the quarter was padded by the recognition of the equity interest gain of AED 916 mn from the acquisition of its remaining stake in its JV with Compass Group, ADNH Compass, for AED 227 mn in March. The transaction saw ADNH acquire Compass’ entire 50% stake in the company
The group’s consolidated revenue increased 1.8% y-o-y to AED 455 mn during the quarter, primarily driven by the company’s hotel segment, which booked AED 386 mn in revenue, similar to the previous year. ADNH’s transport company’s revenues for 1Q 2024 amounted to AED 76 mn, up 9% y-o-y.
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.
Looking ahead: Aramex anticipates ongoing y-o-y volume growth in 2Q and 3Q 2024, taking seasonal patterns into consideration, according to CEO Othman Aljeda. The company also aims to reduce its debts by approximately USD 50 mn to USD 70 mn in 2024, aiming to lessen expenses related to debt servicing, he added.
AL ANSARI FINANCIAL SERVICES-
Al Ansari Financial Services’ net income fell 25.8% y-o-y to AED 98.7 mn in 1Q 2024, due to an increase in overhead expenses and the introduction of corporate tax, according to the company’s earnings release (pdf). The company’s operating income dipped by 4.3% y-o-y to AED 274.7 mn, driven by a 3% y-o-y dent in remittance operating income due to challenges in key remittance markets like India, Egypt, and Pakistan.
What they said: “Looking ahead, we’re encouraged by several key developments. The parallel market conditions in critical markets have stabilized, and the increased remittance fees implemented in April position us for significant future growth. We’re confident these initiatives will translate into improved financial performance in the coming quarters,” CEO Rashed Al Ansari said.
ALSO- A 15% fee hike expected to come into effect in 2Q 2024 could improve margins, deputy group CEO Mohammed Bitar said.
RAK CERAMICS-
Rak Ceramics reported a net income after tax of AED 62.9 mn in 1Q 2024, down 21.5% y-o-y, according to an earnings release (pdf). The company’s revenue fell 11.4% y-o-y to AED 781.6 mn, which the company attributed to geopolitical challenges and market conditions in key markets, with the exception of the UAE.
