• ESG has surpassed expectations, achieving an octuple-digit growth figure that significantly exceeds the initial forecast.
• The company’s revenue in the first half reached all-time highs, with 81% growth YoY, supported by solid new projects.
Abu Dhabi, UAE 28th July 2023: Emirates Stallions Group (ADX: ESG), the Global investment, engineering, and construction solutions company and a subsidiary of International Holding Company (ADX: IHC), has announced an extraordinary 831% Year-on-Year (YoY) surge in net profit for H1 2023.
The company's net profits for first-half profit reached AED 597 million, compared to AED 64 million during the corresponding period last year. Furthermore, the revenue for H1 2023 experienced a solid 81% growth, amounting to AED 266 million, as opposed to AED 147 million in H1 2022.
'We are delighted with our excellent results for H1 2023, as we have managed to sustain growth in line with the industry. Our focused market strategies have paid off, allowing us to achieve remarkable performance while effectively managing costs. It is gratifying to see that our efforts have translated into continuous growth of our market share during this quarter,' said Matar Suhail Ali Al Yabhouni, Chairman of Emirates Stallions Group.
In the second quarter of this year, Emirates Stallions Group achieved a significant milestone with the unveiling of 'Century Village,' a groundbreaking joint venture poised to develop and manage staff accommodation for a substantial workforce of over 5,000 individuals on Abu Dhabi's Al Reem Island. Valued at AED 320 million ($87.1 million), this ambitious project aims to comprehensively address the varied housing requirements of employees in critical sectors, including healthcare, transportation, hospitality and beyond.
“Amidst the ongoing expansion in revenues and meticulous cost management, we are gratified by the substantial enhancement in our bottom line. As we persistently strive to augment our market penetration, with the aid of quality projects management and an expanding network, our unwavering commitment lies in the pursuit of achieving and perpetuating octuple-digit profitability.” stated Kayed Khorma, CEO of Emirates Stallions Group, in elucidating the primary impetus behind this outcome.
ESG's total assets surged impressively by a staggering 93% in comparison to December 2022, culminating in a remarkable value of AED 2.2 billion by the conclusion of the first half of 2023. Concurrently, the company achieved an extraordinary total revenue of AED 266 million, representing a significant 81% Year-on-Year growth, exemplifying its commitment to sustained excellence and dynamic financial performance.
“The impressive growth we have witnessed can be attributed to several key factors. Our successful entry into new markets, coupled with a strategic focus on higher-value-added projects, that boast improved margins, additionally, we have achieved greater efficiencies within our expanded business, all while remaining steadfast to our sustainability mission.” Khorma added.
The exceptional performance witnessed by Emirates Stallions Group is seamlessly aligned with the envisioned enhancements the company aimed for, seizing the promising prospects of the UAE Construction Market. Forecasted to reach a substantial USD 49.40 billion by 2028, growing at a commendable CAGR of 4.85% during the forecast period (2023-2028), the market's current estimated value stands at an impressive USD 38.99 billion in 2023.
Despite the highly competitive nature of the UAE construction market, characterized by the presence of major international players, Emirates Stallions Group has steadfastly pursued its original net profit target of AED 140 million for the full of 2023. Capitalizing on the projected growth opportunities during the forecast period, the market's intensified competition is expected to further invigorate progress. Notably, the market exhibits a noticeable level of consolidation, with a few prominent players commanding significant shares, adding to the dynamic landscape of the industry.
