ADNOC Distribution reports 12% growth in net profit in Q1 2018
Gross profit, EBITDA and net profit increased year on year
ADNOC Distribution, the UAE’s largest fuel and convenience retailer, has reported strong progress against its growth strategy with the release of its financial results for the first quarter of 2018.
Gross profit for the period increased 14.3% compared to the same period last year to AED 1.185 billion, EBITDA has grown by 24.9% to AED 702.8 million, and net profit was AED 542.2 million, up by 12.1% compared to the first quarter of 2017.
ADNOC Distribution's Acting CEO, Saeed Mubarak Al Rashdi, said: “ADNOC Distribution’s first quarter results illustrate a company that is financially strong and has laid a solid foundation for further growth, with its fuel, non-fuel and cost efficiency initiatives. A strong and profitable ADNOC Distribution is good for shareholders, but it’s also good for customers and the UAE as it allows the company to continue investing in critical infrastructure, technology and human capital that supports the country’s development.”
The company’s operational performance remained solid, with total fuel volumes sold reaching 2.3 billion liters in the first quarter, up 0.9% from the same period last year. In its non-fuel retail business, gross profit increased by 37.1%, while average basket size, which measures the average amount each customer spent in the company’s convenience stores, rose by 12.5%.
The results show that the company’s growth strategy is on track, with promising progress across fuel, non-fuel and cost efficiency initiatives. ADNOC Flex, which introduces a greater choice of fueling services, has launched successfully and will be rolled out throughout the UAE in Q2 and Q3. ADNOC Distribution’s convenience store revitalization plans are bearing fruit and the company’s first Géant Express store has opened in Abu Dhabi. In addition, a strong discipline of cost efficiency has been further embedded across the business in the first quarter.
ADNOC Distribution's Deputy CEO, John Carey, commented: “Our financial performance in the first quarter was strong, despite some market-wide headwinds, with increases in EBITDA and net profit. This provides us with a solid foundation to continue transforming our business and delivering against our growth strategy.
As a management team, we will continue focusing on enhancing our customers’ experience across all parts of our business. By providing more choice to our fuel customers through ADNOC Flex, by further improving our convenience store offering, partly through agreements with famous brands like Géant, and by being more cost efficient, I am confident that we will continue to see profitable growth.
ADNOC Distribution has a market-leading position in the UAE and our first quarter results reinforce the financial robustness of our company and agility of our business model. I thank our shareholders for their continued trust and I look forward to further positive developments.”