Nouvelair Tunisia closed the 2024 financial year with revenue of 783.8 million dinars (TND), up 32.9% compared to 2023. The year was marked by strong revenue growth, improved operating profitability and a deeply transformed balance sheet, although the quality of net profit warrants closer scrutiny.
Accelerating activity
Gross revenue reached TND 1.083 billion in 2024, compared to TND 942 million in 2023, up 15%. International transport remains the core business at TND 1.035 billion (+15%), while ACMI operations (aircraft leasing with crew) grew faster at TND 27.6 million (+23%). These two drivers confirm the company’s ability to diversify income sources and reduce the seasonality inherent in charter operations.
Strong rise in operating profitability
Operating income jumped from TND 49.9 million to TND 79.4 million, up 59%. The operating margin relative to gross revenue rose from 5.3% to 7.3%. EBITDA (earnings before interest, taxes, depreciation, and amortization) is estimated at TND 140.8 million, representing about 13% of gross revenue compared to 11% in 2023.
This improvement reflects better absorption of fixed costs over higher activity levels, despite direct operating costs reaching TND 850.6 million, driven notably by aircraft leases (+25%) and maintenance reserves (+25%).
Net profit requires careful reading
Reported net profit reached TND 73.1 million, up 23.9%, but its composition requires attention. Two items inflate this figure. First, investment income contributed TND 16.5 million, linked to returns from a TND 362 million zero-coupon Treasury bond portfolio, a recurring flow as long as the holdings remain unchanged.
Second, other ordinary gains amounted to TND 21.3 million, including TND 19.98 million in income from prior-year adjustments, a one-off catch-up of past corrections (negligible in 2023).
After excluding these TND 19.98 million and adjusting for the corresponding tax effect at an effective rate of 29.2%, normalized net profit stands at around TND 59 million, below the reported TND 73.1 million, but still reflecting solid underlying performance. Financial charges worsened to TND 13.1 million versus TND 5.9 million in 2023, mainly due to foreign exchange losses (TND 8.8 million) amid continued pressure on the Tunisian dinar.
Taxation also weighed heavily, with income tax of TND 24.1 million plus a cyclical contribution of TND 6.0 million, bringing the total tax burden to TND 30.2 million (effective rate: 29.2%).
Restructured balance sheet, no financial debt
Equity increased 2.4 times in one year, rising from TND 51.5 million to TND 124.4 million thanks to accumulated earnings. Share capital remains unchanged at TND 56.7 million, with the Milad family holding around 52%. Notably, the company has zero bank debt or short-term borrowings.
Provisions for risks and charges are the largest non-current liability item at TND 268.5 million, including TND 142 million for leased aircraft engine repairs and TND 105.4 million for owned fleet maintenance.
These are inherent to the aviation business and reflect real future technical obligations rather than financial debt. Trade payables total TND 215 million, including TND 179 million in unreceived maintenance invoices.
Comfortable liquidity despite investment activity
The current liquidity ratio stands at 1.56, slightly up from 1.50 in 2023. Including financial investments, available liquidity exceeds TND 437 million. Operating cash flow rose to TND 39.6 million from TND 20.1 million. Investments consumed TND 69.4 million, including advances for the acquisition of five Airbus NEO aircraft (TND 12.6 million), signaling an ongoing fleet renewal program.
Cash position declined from TND 101.9 million to TND 74.8 million, a natural outcome of investment spending.
Key risks to monitor
Three main points warrant attention. Doubtful receivables stand at TND 53.2 million (42% of gross customer balances), fully provisioned but reflecting significant counterparty risk, notably involving carriers such as Koral Blue and Karthago Airlines. Foreign exchange exposure remains a major source of earnings volatility due to euro-denominated leases, deposits, and costs. Finally, the TND 6 million cyclical tax contribution, presented as extraordinary, is effectively becoming a recurring fiscal burden that will continue to weigh on future profits.
In summary, Nouvelair’s 2024 performance reflects a financially healthy airline with no debt and solid liquidity. Operating results are genuinely improving.
However, reported net profit includes a one-off accounting effect of nearly TND 20 million, suggesting a more realistic underlying profit level of around TND 59 million for forward-looking analysis.
