Tabreed Reports 4% Rise in First Quarter Net Profit, Reaching Dh122 Million
Leading UAE District Cooling Firm Shows Growth Amidst Strong Financial Performance
Tabreed Reports 4% Increase in Q1 Net Profit, Reaching Dh122 Million
Tabreed, recognized as the UAE’s leading international district cooling company, marked a significant milestone with the announcement of its financial results for the first quarter of 2024. The company reported a commendable net profit before tax of Dh122 million, reflecting a notable four percent increase compared to the same period last year, once adjusted for one-off gains and losses. This achievement underscores Tabreed’s resilience and capacity for sustained growth in a dynamic market environment.
One of the key drivers behind Tabreed’s impressive performance was the notable nine percent year-on-year increase in consumption volume. This growth was primarily fueled by the addition of new connections, contributing to the company’s organic expansion efforts over the preceding year. Such growth not only underscores Tabreed’s ability to attract new customers but also reflects the growing demand for efficient cooling solutions in the region.
Throughout the first quarter of 2024, Tabreed’s financial metrics continued to exhibit strength and resilience. Both the top-line revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) witnessed healthy growth, signaling the company’s robust operational performance. Notably, Tabreed’s EBITDA margin stood at an impressive 58 percent, showcasing its operational efficiency and effective cost management practices.
In addition to its financial performance, Tabreed also demonstrated a strong commitment to prudent financial management. The company achieved an exceptional cash conversion rate of 90 percent, reflecting its ability to efficiently convert earnings into cash flows, which is essential for sustaining operations and supporting future growth initiatives.
Moreover, Tabreed continued to actively manage its debt profile during the first quarter of 2024. With a net debt to EBITDA ratio of 3.97x, the company maintained a prudent approach to managing its debt obligations. Notably, Tabreed successfully concluded a tender offer for the repurchase of a portion of its outstanding $500 million sukuk due in 2025. This strategic move not only optimizes the company’s cost of funding but also strengthens its balance sheet, positioning it for future growth and resilience.
Beyond financial metrics, Tabreed reported significant operational achievements during the first quarter of 2024. The company reported an increase in group revenue to Dh468 million, highlighting its continued growth trajectory. Additionally, Tabreed expanded its total connected capacity to 1.305 million refrigeration tonnes, further solidifying its position as a leader in the district cooling sector.
Looking ahead, Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, expressed confidence in the company’s strategic initiatives aimed at sustaining positive momentum in the medium term. He emphasized Tabreed’s commitment to advancing sustainable cooling practices, generating value for shareholders, and making meaningful contributions to the communities it serves. Overall, Tabreed’s impressive performance in the first quarter of 2024 reaffirms its position as a leading player in the district cooling industry, poised for continued success and growth in the years to come.
