SAL Saudi Logistics Services (4263) Q2 2024 earnings summary

Executive summary

• Achieved strong sales and profitability growth in H1 2024, with revenue reaching SAR 858 million, up 26% year-over-year, driven by increased e-commerce demand and expansion in logistics services.

• Net income surged 71% year-over-year to SAR 364 million, reflecting improved operational efficiency and cost control.

• Distributed a cash dividend of SAR 261.6 million (SR 3.27 per share) and approved an additional SR 116 million (SR 1.45 per share) post-period.

• Expanded operational footprint with new fulfillment centers and enhanced service offerings, including a one-stop-shop logistics solution.

Financial highlights

• H1 2024 revenue rose 26% year-over-year to SAR 858 million; Q2 revenue up 19% to SAR 405 million.

• EBITDA increased 42% year-over-year to SAR 454 million, with a stable margin of 53%.

• Net income for H1 2024 was SAR 364 million, up from SAR 213 million in H1 2023.

• Earnings per share for H1 2024 was SAR 4.55, up from SAR 2.66 in H1 2023.

• Free cash flow grew 112% to SAR 234 million, despite a 24% decline in cash from operating activities due to higher working capital.

Outlook and guidance

• Continued focus on expanding logistics division and fulfillment services to diversify revenue streams.

• Ongoing investment in new fulfillment centers and cargo terminal projects, with additional capacity coming online in Q3 2024, Q2 2025, and further completions expected in 2026 and 2027.

• Results for the interim period are not necessarily indicative of full-year performance.

• Management highlights ongoing implementation of growth strategy and focus on operational efficiency.