dnata profit declines 57% in FY2019/20, revenue up 2%

Emirates Group announced (10-May-2020) the following financial highlights for dnata for the financial year ended 31-Mar-2020:

• dnata's profit declined 57% year-on-year to AED618 million (USD168.3 million) in FY2019/20. This includes a one time gain from a transaction where dnata divested its minority stake in Accelya, an IT company that was acquired by Vista Equity Partners. Without this one time transaction, dnata's profit would have declined 72% compared to the same period last year, which included a one time gain from the sale of dnata's stake in travel company HRG. Comparing profit performance without both disinvestment gains from Accelya and HRG, dnata's profit for FY2019/20 would have been lower by 64% year-on-year;
• Total revenue grew to AED14.8 billion (USD4 billion), up 2%. Emirates attributed this increase to dnata's continued business growth particularly in its Catering division, and strong customer retention and new contract wins across its four divisions. dnata's international business now accounts for 72% of its revenue;
• dnata invested more than AED800 (USD217.8) in acquisitions, new facilities and equipment, technologies and people development during FY2019/20;
• Operating costs increased by 8% to AED14.3 billion (USD3.9 billion), in line with organic growth across its business divisions, coupled with integrating the newly acquired companies mainly across its catering division and international airport operations;
• dnata's cash balance was AED5.3 billion (USD1.4 billion), an increase of 4%. The business delivered a AED1.4 billion (USD381.1 million) cash flow from operating activities in FY2019/20, which is "in line with its enhanced cash balance" and "puts the business in a solid position to finance its investments". [more - original PR]