Tabreed Records Steady Growth in Q1 2024: A Comprehensive Analysis
This article provides an in-depth analysis of the Q1 2024 financial results of Tabreed, the UAE's leading international district cooling company, and offers an investment suggestion based on the company's performance and market position.
Summary
Tabreed has reported a 9% YoY increase in consumption volumes and a 4% increase in net profit before tax for Q1 2024. The company's EBITDA margin has also improved, and it has repurchased a significant amount of its outstanding sukuk, indicating active management of its debt profile.
Tabreed, the UAE-based utility company and a leading provider of energy-efficient cooling solutions, has demonstrated a steady performance in Q1 2024, with a 9% year-on-year increase in consumption volumes for its cooling services. The company's net profit before tax was reported at AED 122 million, marking a 4% increase from the same period in 2023.
Tabreed's EBITDA margin has also seen a slight improvement, standing at 58% in Q1 2024 compared to 57% in Q1 2023. This indicates a positive trend in the company's operational efficiency. The group revenue for Q1 2024 was AED 468m, reflecting the company's solid market position.
The company's cash conversion rate of 90% and a net debt to EBITDA ratio of 3.97x at the end of Q1 2024 are suggestive of a healthy financial status. Tabreed has also taken proactive steps towards managing its debt profile, having repurchased a total of USD 240 million (AED 880 million) of its outstanding sukuk due in 2025.
Considering these factors, Tabreed appears to be maintaining a steady growth trajectory. However, it is important for potential investors to consider the broader market dynamics and the company's long-term strategy. Given the current financial data and market position, the suggestion would be to hold the instrument, as the company's future prospects appear neutral at this juncture.
Source
Summary
Tabreed, the UAE's leading international district cooling company, has released its Q1 2024 financial results, showing a 9% year-on-year increase in consumption volumes for its cooling services. The company reported a net profit before tax of AED 122 million, a 4% increase from the same period in 2023. Tabreed's EBITDA margin was 58%, compared to 57% in Q1 2023, with group revenue of AED 468m for Q1 2024. The company also achieved a cash conversion rate of 90% and a net debt to EBITDA ratio of 3.97x at the end of Q1 2024. The company has repurchased a total of USD 240 million (AED 880 million) of its outstanding sukuk due in 2025, as part of its active management of its debt profile.
