Salik Company PJSC: A Strong Quarter Amid Positive Tourism Trends
In this article, we delve into Salik Company's Q1 2024 financial performance, attributing the growth to a robust macroeconomic environment and burgeoning tourism trends.
Summary
Salik Company PJSC, Dubai's unique toll gate operator, reported an 8.1% increase in Q1 2024 revenues, driven by a favorable macroeconomic environment and positive tourism trends. The company also announced the addition of two new toll gates, set to be operational by November 2024.
Salik Company PJSC, the exclusive toll gate operator in Dubai, has reported a robust Q1 2024 with revenues of AED 562 million, marking an 8.1% increase from the previous year. This growth can be attributed to the strong macroeconomic environment and positive tourism trends in Dubai.
The number of revenue-generating trips also witnessed an 8.1% increase to 122.8 million, demonstrating the company's operational efficiency. The number of active registered accounts saw a significant rise of 16.5% to 2.5 million, while active vehicles increased by 9.2% to 4.1 million. These figures indicate a growing customer base and increased usage of Salik's services.
Net profit before tax grew by 10.7% to AED 304.7 million. However, the net profit after tax was AED 277.3 million, up only 0.7% from the previous year, due to the new 9% corporate tax in the UAE. Despite the tax impact, the company's profitability remains strong.
In addition to the positive financial performance, Salik announced the addition of two new toll gates, set to be operational by November 2024. This expansion is expected to further boost the company's revenue-generating capacity.
Given the company's strong financial performance, positive growth trajectory, and expanding operations, we recommend a 'buy' stance on Salik Company PJSC. The company's strategic positioning, coupled with Dubai's flourishing tourism sector and robust macroeconomic environment, make it a promising investment opportunity.
Source
Summary
Salik Company, Dubai's exclusive toll gate operator, reported Q1 2024 revenues of AED 562 million, an increase of 8.1% from the previous year. The company attributed the growth to a strong macroeconomic environment and positive tourism trends. Revenue-generating trips also increased by 8.1% to 122.8 million. The number of active registered accounts rose by 16.5% to 2.5 million, while active vehicles increased by 9.2% to 4.1 million. Net profit before tax grew by 10.7% to AED 304.7 million, while net profit after tax was AED 277.3 million, up 0.7% from the previous year, after accounting for the new 9% corporate tax in the UAE. The company also announced the addition of two new toll gates, to be operational by November 2024.
