ABU DHABI, UAE – Emirates Stallions Group (ESG), a subsidiary of International Holding Company (IHC), on Saturday announced a remarkable year-on-year net profit increase of 316 percent, reaching US$187 million (AED 687 million) for the fiscal year ending December 31 2023.
This financial achievement underscores ESG’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, landscaping, agriculture, real estate development, engineering project management and associated services to construction, development and hospitality – reported a gross profit of US$45 million (AED 168 million).
This is a 99 percent increase compared to the previous year, reflecting improved operational efficiencies and margin enhancement.
Despite a challenging market, the group managed to elevate its revenue to US$165 million (AED 609 million), with a notable focus on high-value projects that contributed to the revenue stream, showcasing a remarkable 70 percent year-on-year increase.
ESG’s total assets witnessed an impressive surge, standing at US$833 million (AED 3.06 billion), a significant 168 percent growth compared to December 2022, underscoring the group’s aggressive expansion and investment strategy.
Matar Suhail Ali Al Yabhouni Aldhaheri, chairman of ESG, said, “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.”
He said, “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.”
Kayed Ali Khorma, CEO of ESG, 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.”
He said, “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.”
He added, “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.”
Highlighting the group’s strong financial position and stakeholder confidence, ESG’s total equity jumped to US$623 million (AED 2.29 billion), marking a growth of 202 percent compared to December 2022.
The company’s book value per share also saw a significant rise, reaching AED 9.1, a 202 percent increase year-on-year.
ESG has notably broadened its scope this year, entering new industries and reinforcing its market position.
The company acquired a majority stake in United International Group (UIG), a leading provider of manpower solutions with over 16 years of operations expertise.
This move positions ESG as a leading manpower solutions company, aiming to deploy over 30,000 skilled professionals by the end of 2024, and serving various sectors.
Substantial acquisitions in key verticals aligned with ESG’s long-term strategy, reinforced its positions, and operations.
This includes the acquisition of a 23.91 percent stake in Kezad Communities which expanded the company’s staff housing portfolio, and acquiring a 60 percent stake in AFKAR Financial and Property Investments, including brands like 2XL and OC home, consolidating ESG’s expansion in the real estate and retail sector.
ESG group launched its hospitality business arm, ESG Hospitality, in a strategic expansion to further cement its position in the hospitality sector.
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.