SAL Saudi Logistics announced strong financial results for the fourth quarter of 2023, with net profit jumping 42% to SAR 201.66 million, compared to SAR 142 million in the same period of the previous year. This significant growth reflects the company's outstanding operational performance and its ability to capitalize on opportunities in the Kingdom's booming logistics sector.
Detailed financial performance and revenue growth
According to the company's official statement published on the Saudi Stock Exchange (Tadawul), this significant increase in net profit is primarily due to improved performance and revenue growth in the freight handling and logistics sectors. On a quarterly basis, net profit grew by 11.5% compared to the third quarter of 2023, which saw profits of SAR 180.9 million.
For the full year, net profit increased by 5.5% during 2023 to reach SAR 697.9 million, compared to SAR 661.4 million in 2022. The company attributed this annual growth to several key factors, most notably:
- Ground handling sector revenue growth: Revenue in this sector increased by 6.9% year-on-year, supported by an improved list of services provided, despite a slight decrease in the volumes of shipments handled compared to the exceptional levels seen in the previous year.
- Improving operational efficiency: The company continued to focus its efforts on improving operational efficiency and the flexibility of its business model while controlling costs, which contributed to enhancing profit margins.
- Expanding the customer base: “SAL” has succeeded in expanding its portfolio of services provided from the logistics sector, which has enabled it to attract new customers and promising new sectors.
Strategic context and the company's role in Vision 2030
These positive results come at a time when SAL is playing a pivotal role in achieving the goals of Saudi Vision 2030, which aims to transform the Kingdom into a global logistics hub connecting three continents. As the primary ground handling arm for air cargo at the Kingdom's airports, the company directly contributes to strengthening the logistics infrastructure and facilitating international trade. The company's continued growth in profits and revenues reflects the success of its expansion strategy and aligns with the Kingdom's overall economic growth across various non-oil sectors.
Dividend payouts and investor confidence
Reflecting these strong results and management's confidence in future performance, the Board of Directors of SAL Company decided to distribute interim cash dividends to shareholders for the fourth quarter of 2023. The company explained that the total amount distributed is SAR 151.2 million, to be distributed among 80 million shares eligible for dividends. The dividend per share is SAR 1.89, representing 18.9% of the share's par value. The entitlement date is set for April 1, 2024, with the distribution to take place on April 16, 2024. This step reinforces investor confidence in the stock and underscores the company's strong financial position and its ability to deliver attractive returns to shareholders.
