Net profit of Dhs291m recorded by Tabreed

Tabreed, the UAE’s primary district cooling company, has unveiled its consolidated financial results for the first half of 2024, alongside significant changes to its Board of Directors.

These results showcase Tabreed’s exceptional financial performance, driven by robust business growth, sustained profitability margins, and a steadfast commitment to sound financial practices. The company experienced an 8% year-on-year increase in consumption volumes, reflecting a surge in cooling demand during the summer months and the continued strategic expansion efforts implemented over the past year.

As a result of its strong operational performance, Tabreed recorded a normalised net profit before tax of Dhs291 million for the first half of 2024, marking a 4% increase compared to the same period in 2023. Moreover, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to Dhs603 million, surpassing the Dhs590 million reported in H1 2023.

Tabreed also witnessed a growth in its topline group revenue, reaching Dhs1.08 billion for the first half of 2024, compared to Dhs1.067 billion in the corresponding period of 2023. This increase in revenue reflects the company’s sustained efforts to expand its business and capture new opportunities in the market.

Furthermore, Tabreed’s EBITDA margin for H1 2024 climbed to 56%, showcasing its ability to drive strong financial results while simultaneously expanding its operations. The company generated free cash flows of Dhs978 million over the past year, translating into a healthy yield exceeding 10%.

In a display of prudent financial management, Tabreed continued its efforts to reduce debt, with a 12% decrease in the first half of 2024. This reduction was achieved through the repurchase of an additional 7 million (Dhs759 million) of its outstanding sukuk due in 2025, highlighting the company’s responsible use of surplus cash.

The Board of Directors at Tabreed has also undergone some key changes, with new appointments and strategic realignments aimed at strengthening corporate governance practices and driving sustainable growth. These changes reflect the company’s commitment to enhancing its leadership team and ensuring alignment with its long-term strategic objectives.

Tabreed’s performance in the first half of 2024 underscores its position as a market leader in the district cooling sector, with a focus on delivering value to its stakeholders and sustainable growth for its business. The company’s financial results not only demonstrate its strong operational capabilities and financial discipline but also highlight its ongoing commitment to innovation and expansion in the UAE and beyond.

As Tabreed continues to navigate the evolving market landscape and capitalize on emerging opportunities in the cooling industry, its solid financial performance and strategic initiatives position it for sustained success in the years to come.