Emirates Stallions Group net profit surges 316% in 2023

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Emirates Stallions Group, a major engineering and construction company in the UAE and a unit of Abu Dhabi-based International Holding Company (IHC), has announced a record year-on-year net profit increase of 316%, reaching AED687 million ($187 million) for FY 2023.

Announcing the results for 12-month period ended December 31, 2023, Emirates Stallions Group said despite a challenging market, it managed to elevate its revenue to AED609 million, with a notable focus on high-value projects that contributed to the revenue stream, showcasing a remarkable 70% year-on-year increase.

This significant financial achievement underscores the Group’s strategic acumen and operational excellence, marking a historic milestone in its growth trajectory.

In addition to its net profit, ESG - a provider of manpower supply, workers and staff accommodation solutions, as well as landscaping and agriculture, real estate development, engineering project management and associated services to construction, development and hospitality - reported a gross profit of AED168 million, up 99% over the previous year, reflecting improved operational efficiencies and margin enhancement.

The group’s total assets witnessed an impressive surge, standing at AED3.06 billion, a significant 168% growth compared to December 2022, underscoring the group’s aggressive expansion and investment strategy, it stated.

"Our remarkable journey in 2023, marked by a triplicate net profit surge, is a testament to ESG’s strategic foresight and operational excellence. This unprecedented growth reflects our commitment to optimizing operations and our relentless pursuit of excellence across all verticals," said its Chairman Matar Suhail Ali Al Yabhouni Aldhaheri.

"As we continue to explore new opportunities, particularly in our newly established sectors, we are poised to redefine industry standards and enhance our competitive edge. Our success is built on a foundation of innovation, resilience, and a deep understanding of the markets we serve," he added.

Highlighting the group’s strong financial position and stakeholder confidence, ESG’s total equity jumped to AED2.29 billion, marking a growth of 202% compared to December 2022. The company’s book value per share also saw a significant rise, reaching AED9.1, a 202% increase year-on-year.

CEO Kayed Ali Khorma said: "The phenomenal growth we have achieved this year, particularly the expansion of our total assets and equity, reflects the start of realization of our strategic approach to embracing new opportunities and optimizing our core operations."

"At ESG, we are not just focused on expanding our portfolio but are deeply committed to operational profitability within our existing as well as newly introduced verticals. Our strategy is to leverage our strengths, innovate continuously, and deliver superior value to our stakeholders. This approach has been instrumental in our ability to achieve such significant milestones," stated Ali Khorma.

ESG said it has notably broadened its scope this year, entering new industries and reinforcing its market position.

The company strategically acquired a majority stake in United International Group (UIG), a leading provider of manpower solutions with over 16 years of operations expertise.

"Looking ahead, ESG remains committed to building on its current momentum, with a focus on sustainable growth, operational excellence, and strategic expansion to continue delivering exceptional value to both its shareholders and clients alike," he added.