SAL Saudi Logistics Services (4263) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was SAR 384.1 million, down 15% year-over-year, reflecting normalization after last year's spike and changes in product mix.

• Net profit for Q1 2025 was SAR 153.1 million, a 27% decrease year-over-year, but operations remained resilient with strong cost discipline.

• EBIT margin improved quarter-over-quarter to 43%, demonstrating operational agility and efficiency.

• Announced a transformative SAR 4 billion investment in the SAL Logistics Zone in Riyadh, with agreements signed with Sela Company and Shareek Program.

• Board recommended a dividend of SAR 1.43 per share, totaling SAR 114.4 million for Q1 2025.

Financial highlights

• Gross profit for Q1 2025 was SAR 214.2 million, with operating profit at SAR 165 million and net profit at SAR 153.1 million.

• Cash and cash equivalents at period end were SAR 1,262.1 million, with a strong net cash position of SAR 662 million.

• Adjusted free cash flow was SAR 25 million, and operating cash flow was SAR 39 million.

• Dividends of SAR 106.4 million (SAR 1.33/share) were distributed in Q1 2025.

• Basic and diluted EPS for Q1 2025 was SAR 1.91, compared to SAR 2.61 in Q1 2024.

Outlook and guidance

• Management remains optimistic about long-term growth, focusing on operational efficiency and strategic expansion.

• Handling division expects single-digit volume growth and continued investment in capabilities and efficiency.

• Logistics division targets topline growth exceeding global GDP, with short-term strain anticipated while investing in growth.

• The SAL Logistics Zone project in Riyadh is expected to drive future growth and aligns with Vision 2030 objectives.

• Board recommended a further dividend of SAR 114.4 million (SAR 1.43/share), pending approval.