Al Ansari Group said in a statement that net profit amounted to 133 million dirhams (about $36.2 million), an increase of 7.2% year on year, thanks to good growth in revenue, a strong increase in foreign exchange revenue from banknote and prepaid card products, in addition to the efficiency of the Group’s operational cost stability and an increase in the number of transactions executed through digital channels.
She added that the group’s free cash flow rose 3% year-on-year to 141 million dirhams (about $38.4 million), indicating its strong liquidity.
The reason for the group’s cash flow growth is due to growth in earnings before interest, tax, depreciation and amortization, with a cash turnover rate of around 93%.
Here is the financial and operational performance of the group during the first quarter of 2023:
Operating profit rose 9.1% year-on-year to AED287 million ($78.15 million), driven by an 8.6% year-on-year increase in the total number of transactions. The increase in the number of transactions was driven by exceptional demand from the B2B sector, the performance of which supported the continued prosperity of the local economy. This is also due to the surge in banknote activity due to the boom in tourism in the UAE and the increase in foreign tourism activity. EBITDA increased 7.9% year-on-year to AED151 million and EBITDA margin was around 53%, unchanged, driven by strong revenue growth, contribution at the higher margin thanks to the increase in the number of digital transactions and the model The flexible group based on the rationalization of the capital expenditure. Despite the increase in the cost of operation in the sector in general, the group was able to some extent to significantly control the main costs, such as rent, thanks to its dominant market share in its sector of activity.
Dividend
The Al Ansari Group, which is listed on the Dubai Financial Market, intends to distribute at least 600 million dirhams for the 2023 financial year, to be paid semi-annually, with the first half dividends to be paid in October 2023 and the second installment to be paid in April 2024. Dividends are subject to Board recommendation and shareholder approval.
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