Abu Dhabi's e7 Lifts Nine-Month Profit 56.5% as Identity Solutions Revenue Rises 29%

Growth came mainly from identity solutions, the business the company has made the centre of its strategy. Revenue in that segment rose 28.6% to AED 291 million, more than half of the group total. Chairman Ahmed Al Shamsi said the group was drawing on its "established capabilities in secure production" while widening its range of physical and digital products. The results were published by the state news agency WAM.

Other segments were mixed. Printing and education solutions grew 6.4% to AED 166.2 million. Packaging revenue fell 8.6% to AED 25.7 million and logistics slipped 1.4% to AED 53.8 million.

Margins improved over the nine months. Gross profit rose 22.6% to AED 178.8 million, a gross margin of 33.3%. Earnings before interest, tax, depreciation and amortisation increased 21.8% to AED 119.5 million, a margin of 22.3%.

The third quarter was weaker. Revenue rose 2.8% from a year earlier to AED 178.6 million, and net profit after tax increased 9.5% to AED 30.7 million. Pre-tax profit was AED 33.7 million, up 9.4%. Quarterly EBITDA fell to AED 40.5 million from AED 46.1 million, and the margin dropped to 22.7% from 26.5%. Operating profit declined to AED 28.8 million from AED 36.4 million.

Chief executive Esteban Gomez Nadal said the printing and education business had a strong third quarter, with revenue up 51% from the previous quarter on higher education-related activity, but that the mix of business had weighed on margins in the period.

Cash generation improved sharply. Net cash from operating activities rose to AED 132.3 million in the nine months from AED 50.0 million a year earlier. The group's chief financial officer said e7 had no external borrowings and held AED 490.6 million in cash and bank deposits as of September 30. The chairman said this debt-free balance sheet allows the company to keep investing selectively in growth opportunities.