SAL Saudi Logistics Services (4263) Q3 2024 earnings summary

Executive summary

• Achieved SAR 1,225 million in revenue for the nine months ending 30/09/2024, a 17% year-over-year increase driven by higher air cargo volumes, logistics diversification, and increased demand in cargo handling.

• EBIT grew by 45% compared to the same nine-month period last year, with margins improving due to cost control and operational efficiencies.

• Net profit rose 58% year-over-year to SAR 519 million for the nine-month period.

• Condensed interim financial statements reviewed with no material misstatements identified by the independent auditor for the period ended 30 September 2024.

• IPO completed in November 2023, now listed on Tadawul.

Financial highlights

• Revenue for the nine-month period ended 30 September 2024 was SAR 1,225.3 million, up from SAR 1,045.1 million year-over-year.

• Net profit for the nine-month period was SAR 519.4 million, compared to SAR 329.1 million year-over-year.

• EBIT rose 45% to SAR 555 million from SAR 383 million year-over-year.

• EPS grew 58% to 6.49 from 4.11 year-over-year.

• EBITDA for the nine-month period was SAR 638.1 million, up from SAR 484.3 million year-over-year.

Outlook and guidance

• Management expects continued growth in logistics and cargo handling, with further margin improvements anticipated through cost control and operational enhancements.

• Major cargo terminal completions anticipated in 2026 and 2027, with ongoing capital projects and new loan facilities secured for expansion.

• Revenue growth expected to continue, supported by logistics diversification and higher cargo volumes, though timing of major projects may affect quarterly comparisons.