Salik's Revenue Surges 8.7% in FY 2024
Salik Company PJSC reports significant financial growth in FY 2024, with revenue and EBITDA showing impressive increases.
Summary
Salik Company PJSC's FY 2024 results reveal an 8.7% revenue growth to AED 2.3 billion and a 13.6% increase in EBITDA, driven by strategic expansions.
Salik Company PJSC, Dubai's exclusive toll gate operator, has reported a stellar financial performance for the fiscal year 2024, marking a significant milestone in its growth trajectory. The company recorded a total revenue of AED 2.3 billion, reflecting an 8.7% year-on-year increase. This robust growth is attributed to the strategic addition of two new toll gates and an increase in revenue-generating trips, which rose by 8% to 498.1 million.
EBITDA for the year reached AED 1.6 billion, up by 13.6% compared to the previous year, with an impressive margin of 68.9%. The net profit before tax surged by 16.6% to AED 1.3 billion, underscoring the effectiveness of Salik's cost efficiency measures and strategic expansions.
His Excellency Mattar Al Tayer, Chairman of the Board of Directors, expressed satisfaction with the company's performance, highlighting the successful introduction of new toll gates and strategic partnerships aimed at enhancing Salik's service offerings and expanding ancillary revenue streams. These initiatives align with Salik's ambition to become a global leader in sustainable and smart mobility solutions.
CEO Ibrahim Sultan Al Haddad emphasized the positive economic trends in Dubai, which support Salik's growth prospects. The company has revised its guidance for FY 2025, projecting a revenue growth of 28-29% compared to FY 2024, driven by innovative solutions such as variable pricing and strategic collaborations.
With Salik's strong financial results and strategic initiatives in place, the company's future appears promising. Investors might consider a 'buy' position, given the company's solid growth trajectory and potential for further expansion in the smart mobility sector.
Source
Summary
Salik Company PJSC, Dubai's toll gate operator, reported financial results for FY 2024, showing an 8.7% increase in total revenue to AED 2.3 billion and a 13.6% rise in EBITDA to AED 1.6 billion. Revenue-generating trips increased by 8% to 498.1 million, supported by the launch of two new toll gates. The company declared cash dividends of AED 619.8 million for the second half of 2024. His Excellency Mattar Al Tayer, Chairman, highlighted the company's strong financial performance and strategic milestones, including partnerships aimed at expanding revenue streams and enhancing mobility solutions. CEO Ibrahim Sultan Al Haddad noted robust Q4 performance and revised guidance for FY25, projecting revenue growth of 28-29% and an EBITDA margin of 68-69%. The company's initiatives include variable pricing, new gates, and collaborations for innovative parking and insurance solutions. Net profit before tax rose by 16.6% to AED 1.3 billion, with total trips up by 7.6% to 638.2 million and active registered accounts increasing by 7.4% to 2.6 million. Despite a new 9% corporate tax, profit for the period grew by 6.1% to AED 1.2 billion. The total dividend for 2024 was AED 1,164.5 million, equivalent to 15.5275 fils per share.
