Earnings Report

E7 Group

H1 26

1. Company Overview & Earnings Context

E7 Group P.J.S.C. is an Abu Dhabi Securities Exchange (ADX)-listed company whose principal activities include printing, publishing, packaging and distribution of newspapers, magazines, books and other printed materials. The Group operates primarily through its printing and distribution businesses and is ultimately owned by Abu Dhabi Developmental Holding Company (ADQ).

E7 Group delivered a strong H1 2026 performance, with revenue, gross profit, operating profit and net profit all recording significant year-on-year growth. Revenue reached AED 358.21 million, while net profit nearly doubled to AED 60.98 million.

2. Financial Performance Snapshot

Revenue: AED 358.21 Million (+22.8% YoY)
Gross Profit: AED 118.21 Million (+34.4% YoY)
Operating Profit: AED 58.57 Million (+77.0% YoY)
Profit Before Tax: AED 67.00 Million (+99.3% YoY)
Net Profit: AED 60.98 Million (+99.5% YoY)
Profit Attributable to Owners: AED 61.37 Million (+100.8% YoY)
Earnings Per Share (EPS): AED 0.03 vs. AED 0.02 in H1 2025

Compared with H1 2025:

Revenue increased from AED 291.59 million to AED 358.21 million.
Gross profit increased from AED 87.97 million to AED 118.21 million.
Operating profit increased from AED 33.09 million to AED 58.57 million.
Profit before tax nearly doubled from AED 33.61 million to AED 67.00 million.
Net profit increased from AED 30.57 million to AED 60.98 million.
Profit attributable to owners increased from AED 30.57 million to AED 61.37 million.

3. Operational Highlights & Key Metrics

Printing Revenue: AED 326.09 Million (+25.9% YoY)
Distribution Revenue: AED 32.12 Million (-1.4% YoY)
Gross Profit Margin: 33.0%, up from 30.2%
Operating Profit Margin: 16.4%, up from 11.3%
Total Assets: AED 1.37 Billion
Total Equity: AED 1.00 Billion
Cash & Bank Balances: AED 400.56 Million
Capital Expenditure: AED 48.20 Million
Property, Plant & Equipment: AED 462.24 Million

4. Key Performance Drivers

E7 Group's H1 2026 growth was primarily driven by its printing business, where revenue increased 25.9% YoY to AED 326.09 million from AED 259.01 million. Distribution revenue remained broadly stable at AED 32.12 million. The stronger revenue performance helped gross profit increase 34.4% to AED 118.21 million, outpacing top-line growth and supporting margin expansion.

Profit growth was also supported by a significant reduction in finance costs. Finance costs fell to AED 1.20 million from AED 31.84 million in H1 2025, largely because the prior-year period included a AED 29.73 million loss on warrant liabilities at fair value through profit or loss. At the same time, finance income declined to AED 9.62 million from AED 32.36 million.

5. Outlook & Forward Guidance

E7 Group did not provide specific quantitative financial guidance for the remainder of 2026 in its interim financial statements. However, the company continued investing in its operational capacity, recording AED 48.20 million in capital expenditure during H1 2026 compared with AED 3.69 million in the comparative period.

Management also assessed the ongoing regional geopolitical environment and stated that the Group's operations remained stable with no material disruption across its key business segments as of 30 June 2026. The Group continues to monitor potential risks including supply-chain disruption, procurement delays and higher costs.

6. Investor Takeaway

E7 Group delivered a strong H1 2026, with revenue growing 22.8% to AED 358.21 million and net profit almost doubling to AED 60.98 million. Importantly, gross and operating profit grew faster than revenue, with the gross profit margin expanding to approximately 33.0% and the operating margin to 16.4%, indicating improved operating profitability.

The printing business remained the key growth engine, accounting for the vast majority of Group revenue, while E7 significantly increased capital expenditure during the period. However, cash flow is an area to monitor: the Group recorded AED 9.87 million of net cash used in operating activities, although this improved substantially from an outflow of AED 55.24 million in H1 2025. E7 also paid AED 203.61 million in dividends during H1 2026.