E7 Group's H1 2024 Net Profit Soars By 93%, EBITDA Increases By 4%

E7 Group PJSC ("E7" or "the Group"), a company specialising in commercial printing, security printing, sustainable packaging, and distribution services (ADX: E7), has reported its financial results for the first half of 2024. The Group's performance highlights significant growth and operational success.

In Q2 2024, E7 Group achieved a 10% year-on-year revenue increase to AED 174.8 million. This contributed to a robust 5% year-on-year growth for H1 2024. The growth was driven by the E7 Security, E7 Printing, and E7 Packaging segments, alongside successful new contracts both domestically and internationally.

Ahmed Al Shamsi, Chairman of E7 Group, commented on the results: "E7 Group delivered a strong set of results in Q2, demonstrating the strength of our business model and the ongoing successful execution of our growth strategy. Buoyed by the ambition and growth of the UAE economy and the wider region, we continue to capitalise on the momentum we've built in the high-growth security solutions segment and expand in sustainable packaging, exporting more UAE-made products to the world. Our impressive 93% increase in net profit before tax and significant EBITDA growth during the quarter reflects our ability to capitalise on these robust economic conditions. We’re confident we’ll maintain this momentum and deliver exceptional value to our stakeholders through 2024 and beyond."

The company's EBITDA for Q2 2024 reached AED 51.9 million, marking a 31% improvement from the previous year. The EBITDA margin increased from 25% in Q2 2023 to 30% in Q2 2024 due to operational efficiency and optimising raw material costs. For H1 2024, EBITDA margin remained steady at 24%, consistent with H1 2023.

Ali Saif Ali Abdulla Alnuaimi, Group Chief Executive Officer of E7 Group, highlighted their achievements: "Our stellar performance in the second quarter of 2024, including EBITDA growth of 31%, is a testament to our team's relentless focus on operational excellence and delivering on our strategic growth objectives across our business. We secured several significant long-term contracts and expanded our customer base while also strengthening our long-term partnerships with established Government partners in the UAE and internationally. Our planned investments in increasing production capacity and diversifying in the security solutions segment demonstrate our commitment to innovation and expansion and will open opportunities in new geographies. Our ongoing focus on organic and inorganic growth cements our position as a leaderin our sector."

Profit Margins

The net profit before tax surged by an impressive 126% year-on-year to AED 71 million in Q2 2024. The net profit margin nearly doubled from 20% in Q2 2023 to 41%. For H1 2024, net profit before tax rose by 93% to AED 100.2 million with margins increasing significantly from 18% to 33%. Net profit after tax for Q2 was AED 64.5 million while H1 saw AED 91.1 million.

E7 Group's continued focus on high-margin product segments has played a crucial role in these results. The company has also benefited from cost optimisation strategies that have enhanced profitability.

The financial results reflect E7 Group's ability to leverage favourable economic conditions effectively while maintaining a strong focus on operational efficiency and strategic growth initiatives.

The company remains optimistic about sustaining this momentum throughout the rest of the year and beyond, aiming to deliver exceptional value to its stakeholders.

With inputs from WAM