Dnata Revenues Climbs 14 Percent

May 09--In its 55-years of operation, 2013-14 has been dnata's most successful yet, building on its very strong results in the previous year.

Dnata, one of the world's largest air services providers, recorded a 14 percent increase in its revenue declaring at Dh7.6 billion for the financial year 2013-14 compared to previous year through organic growth and as well as strategic international acquisitions.

Dnata also outperformed last year's record profit to reach Dh829 million during 2013-14. It invested a record Dh850 million during 2013-14 into its business, laying the foundations for future growth.

Its key investments included: the development of dnata City -- a 20-acre cargo logistics centre at London Heathrow Airport, additional warehousing capacity at seven airports across the UK, and capacity expansion of Freight Gate 3 at Dubai airport.

In its 55-years of operation, 2013-14 has been dnata's most successful yet, building on its very strong results in the previous year.

For the first time in the company's history, dnata's international business accounted for 50 per cent of its revenue.

"Dnata, like Emirates, has expanded its reach and functions dramatically over the last 12 months. With over 50 per cent of its revenues now derived from overseas and international operations, dnata's airport services business is almost as synonymous as Emirates is on the world stage," Saj Ahmad, chief analyst at London-based StrategicAero Research, told

Ahmad said that dnata is often affectionately referred to as the "untold" success story at the Emirates Group. Looking at their performance capability over the last year, it's not hard to see why dnata has a powerful presence and one that is sure to reap even more rewards, he added.

Dnata's international growth continued with the addition of several new companies in its portfolio including the acquisition of Broadlex, an aircraft cleaning service provider in Australia, and Gold Medal Travel Group, one of the leading distributors of long-haul travel products in the UK. Dnata also acquired Air Chefs in Italy, by taking over the remaining 50 per cent stake from Servair.

Revenue from dnata's airport operations increased strongly by 15 per cent to Dh2.8 billion. It remains dnata's largest revenue stream. The year's performance was primarily driven by strong volume growth in the UK and Dubai, including first time handling operations at Dubai World Central where commercial passenger flights began in October, and also in a number of dnata's other global operations including new services from Broadlex. Dnata today handles 250 airlines at 27 airports in nine countries and is the world's largest ground handler of the A380.

Dnata's cargo handling division grew revenue by eight per cent to Dh1.2 billion, on account of increasing business volumes in the UK and additional road feeder services between both airports in Dubai. Dubai World Central now accounts for 30 per cent of dnata's cargo handling activities in Dubai.

Dnata's catering business accounted for Dh1.8 billion of its total revenue, up 25 per cent. The inflight catering business uplifted more than 41 million meals during the year, a sharp rise of 44 per cent on account of dnata's consolidated operation in Italy as well as its growth in the UK and Australia.

Revenue from dnata's travel services division also saw strong growth of 22 per cent to reach Dh662 million. This is mainly attributed to business growth in the UK through Travel Republic and the newly integrated business of the Gold Medal Travel Group as of March. The underlying travel services related turnover, measured by net sales value, increased 10 per cent to Dh5.9 billion.

In 2013-14, dnata's operating costs increased by 15 per cent to Dh6.7 billion, reflecting the first months of integrating the newly acquired companies across its airport, catering and travel businesses. Similar to last year, dnata's cash balance of Dh2.4 billion remains strong and the business delivered a solid Dh1.1 billion operating cash flow in 2013-14.

Dnata's employee strength increased to 23,000, a 14 per cent growth which includes employees from its newly acquired companies. The majority of dnata's staff, 60 per cent, are based in UAE.

Copyright 2014 - Khaleej Times, Dubai, United Arab Emirates