National Central Cooling Company (TABREED) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 reached AED 1.85 billion, up 2% YoY, with EBITDA at AED 933 million (+2% YoY) and EBITDA margin stable at 50%.

• Net profit attributable to equity holders was AED 425.2 million, a 49% increase YoY; normalized profit before tax rose 4% YoY.

• Strong financial health with reduced debt, 20% savings in net finance cost, and prudent capital allocation.

• Accelerated new connections, with total connected capacity reaching 1.318 million RT and expanded international presence in India and Egypt.

• Advanced sustainability initiatives, achieving significant energy and CO2 savings and publishing the fourth annual ESG report.

Financial highlights

• Revenue grew 2% YoY to AED 1,850.5 million; EBITDA up 2% YoY to AED 933 million; gross profit up 1% YoY to AED 815 million.

• Net profit attributable to equity holders was AED 425.2 million (+49% YoY); normalized net profit before tax rose 4% YoY to AED 462 million.

• Free cash flows reached AED 595 million; net operating cash flows at AED 940 million (+3% YoY).

• Total assets decreased 5% to AED 14,034 million; total equity down 2% to AED 6,834 million.

• Net finance cost reduced by 20% YoY.

Outlook and guidance

• New capacity guidance for 2023-2024 is 100k RT, with 85% from consolidated entities.

• Medium-term guidance targets 3-5% annual capacity growth from 2024-2026.

• Results for the nine months are not necessarily indicative of full-year performance due to seasonality in chilled water demand.

• Rising demand for space cooling and supportive government policies expected to drive continued growth.

• Expansion in existing and new markets, including Saudi Arabia, India, and MENA/Asia, to sustain long-term growth.