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ACQUISITIONS SUPPORT GROWTH

DP World posts 18% surge in H1 revenue to top $4bn

DUBAI, August 19, 2020

Dubai-based global trade enabler DP World has posted revenue of $4.076 billion during the first half (H1) of 2020, as against revenue of $3.463 billion in H1 2019, marking a growth of 17.7% supported by acquisitions.

While like-for-like adjusted EBITDA grew 1% year-on-year, profit for the period attributable to owners of the company decreased to $313 million from$753 million during H1 2019, reflecting a Like-for-like 46.5% decrease at constant currency
 
Results highlights

•    Like-for-like revenue decreased by 11.6% and down 3.4% excluding Emaar land sale in 2019.
•    Adjusted EBITDA of $1,534 million and adjusted EBITDA margin of 37.6%
•    Adjusted EBITDA declined 4.8%, and EBITDA margin for the half-year stood at37.6%. Like-for-like adjusted EBITDA margin of43.9%.
•    Adjusted EBITDA excluding Emaar land sale in 2019 increased 1.1% year-on-year on a like-for-like basis displaying resilience of the wider portfolio.
•    EBITDA margin declined due to a change in mix with the consolidation of lower margin Logistics businesses.
•    Profit attributable to owners of the Company before separately disclosed items decreased 58.5% on reported basis and 34.5% excluding Emaar land sale in 2019.
•    Cash from operating activities remains strong at $1,124 million in 1H2020 compared to $1,046 million in 1H2019


DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, said: “The Covid-19 outbreak has undoubtedly resulted in one of the most challenging periods in the history of our industry. Our gross volumes have declined by 3.9% in 1H2020 which compares favourably against an estimated industry decline of 10%.”

“However, our like-for-like EBITDA6, excluding land sale in the prior period, has grown by 1.1% during this period which demonstrates that we have managed costs efficiently. This outperformance once again demonstrates that we are in the right locations and a focus on origin and destination cargo will continue to deliver the right balance between growth and resilience.  

“Despite the challenges, we have continued to make progress on our strategy to deliver an integrated supply chain solution to cargo owners.  We have focused our efforts on digitizing logistics and developed solutions for several verticals including the Automotive, Oil & Gas and FMCG industries. We are pleased to state that cargo owners have responded positively, and we are now delivering efficient solutions to our customers, which bodes well for the future,” he added.

“In 2020, DP World de-listed its equity from the stock exchange and returned to private ownership. The strength and resilience that our business continually demonstrates throughout the cycles is due to the investment the Group has made over the years in response to changes in our industry. Our ability to adapt and change has been the key to our success, and we must continue to evolve for continued growth. We believe this long-term approach to business is not aligned with the short term thinking of equity markets and consequently the next stage of DP World’s development will take place as a private company.  

“Looking ahead, our focus is on the safety of our employees, integration of our recent acquisitions to drive synergies, containing costs to protect profitability and managing growth capex to preserve cashflow,” he explained.

“Overall, we are encouraged that our business has performed better than expected given the Covid-19 pandemic and, while the outlook is still uncertain, we remain positive on the medium to long-term fundamentals of the industry,” Bin Sulayem concluded. – TradeArabia News Service




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