SAL Saudi Logistics Services (4263) Q4 2024 earnings summary

Executive summary

• Achieved 12% revenue growth to SAR 1.63 billion in 2024, with 30% net profit growth, driven by strong handling volume, logistics expansion, and operational efficiencies.

• EBIT rose 21% year-over-year to SAR 709 million, supported by volume growth, receivables recovery, and cost efficiencies.

• Handling division saw 20% volume growth, especially in courier air cargo, and Logistics division delivered 15% organic revenue growth.

• Secured a 20-year lease at King Khaled Airport, managed major events, and renewed long-term contracts.

• Continued investment in digital infrastructure and advanced technologies to optimize workflows and enhance customer service.

Financial highlights

• Revenue rose to SAR 1.63 billion, up 12% from SAR 1.46 billion in 2023.

• Net profit reached SAR 661 million, up 30% year-over-year.

• Operating profit (EBIT) reached SAR 709 million, up 21%, with an EBIT margin of 43.4%.

• Adjusted free cash flow was SAR 724 million, reflecting lower working capital and limited CAPEX.

• Dividends paid totaled SAR 494 million, with SAR 106 million announced for Q4.

Outlook and guidance

• Positive volume growth expected in handling, aligned with NTLS targets and continued investment in efficiency.

• Logistics unit anticipates topline growth exceeding global GDP, with short-term strain from fulfillment utilization and growth investments.

• Optimism for 2025, building on an exceptional 2024 performance, with focus on operational efficiencies and profitable growth.

• Announced Q4 2024 dividend of SAR 1.33 per share.