ADNOC Distribution reveals robust financial results for Q2 of 2024 as profit, cash flow increase
(MENAFN) ADNOC Distribution, listed on the Abu Dhabi Securities Exchange, reported robust financial performance for the second quarter of 2024. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 15 percent year-on-year to reach AED 979 million (USD267 million). Net profit also saw a notable increase of 12.9 percent from the previous year, totaling AED 623 million (USD170 million). When excluding the effects of corporate tax in the UAE, net profit grew by 24.5 percent year-on-year to AED 687 million (USD187 million). This impressive financial performance was attributed to a combination of increased fuel sales, an expanded international presence, and enhanced non-fuel retail revenues.
Non-fuel retail sales contributed significantly to the overall performance, with profits rising by 13.5 percent year-on-year to AED 204 million (USD56 million) in Q2 2024. The growth in non-fuel retail was driven by the expansion of the car wash business, including new initiatives such as automated car wash centers, and improved retail offerings and car care services. Additionally, ADNOC Distribution benefited from increased inventory gains and achieved notable cost savings of AED 37 million (USD10 million) in operating expenses during the first half of 2024.
The company also reported strong free cash flows of AED 1.2 billion (USD330 million) for the second quarter, which was seven times higher compared to the same period in 2023. For the first half of 2024, cash flows increased by 46.7 percent year-on-year to AED 1.8 billion (USD488 million). The solid cash flow performance, coupled with a favorable balance sheet and a low debt-to-EBITDA ratio of 0.53x as of June 30, 2024, underscores ADNOC Distribution's strong financing capacity and its potential for future growth and value creation for shareholders.
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