Salik Company (SALIK) H1 2024 earnings summary

Executive summary

• Achieved H1 2024 revenue of AED 1,094.8 million (+5.6% YoY), surpassing pre-pandemic levels.

• EBITDA margin rose to 67.4% (+6.5% YoY); net profit after tax was AED 544.8 million.

• Interim dividend of AED 545 million (100% of H1 2024 net profit) declared; board approved AED 544.8 million payout.

• Two new toll gates to be operational by November 2024, raising total to ten, valued at AED 2.73 billion.

• Launched a 5-year parking partnership with Emaar Malls, expanding ancillary revenue streams.

Financial highlights

• H1 2024 revenue reached AED 1,094.8 million (+5.6% YoY); Q2 2024 revenue was AED 532.7 million (+3.1% YoY).

• H1 2024 EBITDA was AED 738.4 million (+6.5% YoY); net profit after tax was AED 544.8 million.

• Net profit margin after tax for H1 2024 was 49.8%, impacted by new 9% UAE corporate tax.

• Free cash flow for H1 2024 was AED 687.4 million, with a margin of 62.8%.

• Tolling revenue for H1 2024 was AED 973.5 million; fines contributed AED 116.1 million.

Outlook and guidance

• FY 2024 revenue growth guidance revised up to 7–8%, reflecting new gates and strong H1 performance.

• EBITDA margin guidance raised to 67–68%, supported by lower concession fees.

• Net profit margin after tax expected at 48–49% for FY 2024.

• Growth driven by incremental revenue from new gates, continued closure of the floating bridge, and ancillary streams.

• Moderate seasonality expected, with revenue and earnings typically lower during summer months.