The DB World Group announced strong financial results for the year ending December 31, 2022, with total revenue growing by 58.9% on a reported basis, to reach 62.89 billion dirhams.
DB World stated, in a statement, that the increase in revenues by about 23.31 billion dirhams on an announced basis was supported by acquisitions, while the growth in revenues on a like-for-like basis was driven by the strong performance of ports, container terminals and marine services.
Container-related revenues increased by 12.1%, driven by increased demand for container-support services. Non-container revenues increased on a like-for-like basis by 18.3%, with Unifeeder’s strong performance, due to improved average freight rates.
profits
Adjusted earnings before interest, tax, depreciation and amortization increased by 31%, to reach AED 18.41 billion, in light of strong revenue growth.
The adjusted EBITDA margin was 29.3% over the past year, while the adjusted EBITDA margin was 37.2% on a like-for-like basis.
budget
The group stated that one of its most prominent results is the strong performance of cash generation and a stronger balance sheet on the liquidation of assets, as the cash liquidity generated from operations increased by 20.6%, to record 16.34 billion dirhams in 2022, compared to 13.55 billion dirhams in 2021.
The gearing ratio (the ratio of net debt to adjusted EBITDA on an annual basis), prior to IFRS adoption, fell to 2.7 times due to improved profitability and lower net debt.
record results
Sultan Ahmed Bin Sulayem, Chairman and CEO of the DB World Group, said: “We are pleased to announce record results for DB World in 2022, with adjusted earnings before interest, taxes, depreciation and amortization growing by 31%. , to exceed 18.41 billion dirhams.
He added, “This significant growth demonstrates that our strategy of focusing on high-margin goods, and providing integrated solutions for supply chains, will continue to generate sustainable revenues in the long term.”
assets
Bin Sulayem continued: “During 2022, we focused on strengthening the company’s balance sheet, and we collected more than 29.38 billion dirhams, by liquidating some of our assets, as the new partnerships will allow the group to continue to drive growth in our portfolio, and the new capital will provide the group with flexibility and efficiency for investment.” In the main growth markets, while maintaining a strong investment rating.
He pointed out, “The strong performance for 2022 exceeded expectations, and the beginning of 2023 was encouraging for us, and we remain optimistic about the sector’s performance in the medium and long term, as well as DB World’s ability to continue to achieve sustainable revenues.”
investments
The “DB World” group invested capital expenditures amounting to 6.29 billion dirhams during the past year, compared to 5.11 billion dirhams in 2021, through its current portfolio.
The expectations of capital expenditures for the year 2023 amount to about 6.24 billion dirhams, and it includes the implementation of the planned investments in the UAE, Jeddah in Saudi Arabia, the port of “London Gateway” in the United Kingdom, the port of Dakar in Senegal, in addition to the port of “Banana” in the Congo, and the port of “Kalao” in Peru. and DB World Logistics in South Africa.
31 %
A growth in adjusted profits to reach 18.4 billion dirhams.