Sustainable Infrastructure Holding Company Reports 23.8% Increase in Q3 FY24 Revenue to 1.8 Million (Excluding Accounting Construction Revenue)

Sustainable Infrastructure Holding Company Reports Significant Growth in Q3 2024 Financials

JEDDAH, Saudi Arabia — In a compelling demonstration of resilience and performance, Sustainable Infrastructure Holding Company (SISCO), a premier strategic investor within the Ports, Logistics, and Water Solutions sectors, has released its financial results for the third quarter of the fiscal year 2024, ending September 30. This announcement follows the broader trends of economic recovery and growth within the Kingdom, as well as the company’s strategic initiatives aimed at capitalizing on emerging market opportunities.

Robust Revenue Growth

The financial report indicated that SISCO achieved revenues amounting to SAR 341.8 million for Q3 2024, which marks an impressive 23.8% increase compared to the same quarter in the previous fiscal year, Q3 FY23. This growth is particularly noteworthy given the ongoing challenges within the regional market. When evaluated on a quarter-to-quarter basis, revenues grew by 13% from SAR 302.1 million in Q2 FY24, underscoring the company’s consistent upward momentum.

Gross Profit and Margins

Turning to profitability, SISCO’s gross profit for the third quarter reached SAR 179.8 million. This figure reflects a 14.7% increase from the previous quarter and a 21.7% rise compared to Q3 FY23. The company’s gross profit margin did experience a slight decline of 0.9% year-on-year, attributed to heightened depreciation and direct costs. However, on a quarter-to-quarter basis, gross profit margins improved by 0.8%, reinforcing market expectations regarding SISCO’s operational efficiency. For the year-to-date period, gross profits increased by 13.8%, reaching a total of SAR 469.5 million.

Adjusted EBITDA Performance

The adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose significantly by 29.5% to SAR 210.2 million in comparison to Q3 FY23. Quarter-on-quarter growth was a substantial 20.8%, whereas year-to-date EBITDA reached SAR 543.8 million, reflecting a commendable 17.7% increase. These figures indicate that SISCO is achieving its financial targets and aligning with its long-term strategic goals.

Port Operations Resilience

SISCO demonstrated remarkable recovery in its Port operations, particularly noted in the performance of the Red Sea Gateway Terminal. Following a subdued Q3 FY23, volume throughput for the port rebounded significantly, reaching 828,868 Twenty-foot Equivalent Units (TEUs) in Q3 FY24, which aligns closely with the volumes seen in Q4 FY23. This recovery has been critical amidst the backdrop of regional uncertainties.

Strategic Insights from Leadership

Eng. Khalid Suleimani, the Group CEO of SISCO, commented on the impressive financial results, stating, “I am pleased to report that SISCO has continued to demonstrate strong growth and operational performance in Q3 FY24. Revenues improved significantly, and our Ports segment has been a key growth driver. This performance is particularly commendable, given the considerable challenges posed by conditions in the Red Sea.”

He also addressed the company’s financial obligations, noting, “Net income remains robust, even with the one-time Zakat payment of SAR 25 million. A key highlight is the impressive recovery in the Red Sea Gateway Terminal, which underscores its resilience in navigating challenges.”

Further, Eng. Suleimani expressed excitement regarding the recent development of the Multi-Purpose Terminals (MPT) concession. This strategic move positions SISCO to expand its operational capabilities across non-containerized port facilities. Such initiatives are anticipated to facilitate the company’s growth trajectory within both domestic and international markets.

Future Prospects

Looking ahead, SISCO remains steadfast in its strategic vision to double revenues by 2026 while continuing to enhance value for its shareholders. The upcoming years promise to be transformative as the company aims to leverage market opportunities and expand its investment portfolio.

In summary, SISCO’s Q3 FY24 financial report not only highlights its impressive growth in revenues and profitability but also reflects broader economic trends within Saudi Arabia. As the Kingdom continues to diversify its economy, companies like SISCO stand poised to play pivotal roles in shaping the future of infrastructure development.

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