Thursday 27 January 2022

IHC posts solid growth; 9-month net profit surges to $1.9bn

ABU DHABI, November 5, 2021

International Holding Company (IHC), an Abu Dhabi-based multi-sector conglomerate, has recorded a 308 per cent surge in its net profit for the first nine months of the year which rose to AED7.2 billion ($1.9 billion) driven by a series of acquisitions and strong performance across subsidiaries.
Announcing the results for the January to September period, IHC said its revenue grew 297% for the nine-month period to hit AED18.31 billion, while its total assets increased by AED6.1 billion during the third quarter.
IHC’s strategic acquisitions continued to strengthen the conglomerate’s balance sheet, reaching AED 64.4 billion, an increase of AED50.3 billion during the nine-month period ending September.
The Abu Dhabi group has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations.
Comprising more than 30 entities, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Real Estate, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.
Third-quarter revenue jumped 290 percent to AED 8.39 billion, and net profit to AED 2.87 billion.
IHC’s financial highlights for the three-month period ending September 30, included:
*Net profit of AED2.87 billion, an increase of 200% when compared to the same period last year.
*Third-quarter revenue of AED8.39 billion, a jump of 290% when compared to the same period last year.
*Total assets of AED64.4 billion, up from AED14.01 billion at the end of December 31, 2020.
CEO and Managing Director Syed Basar Shueb said: "Our investments in the third quarter, including strategic add-on acquisitions, have driven IHC's growth and enhanced our market position and future growth trajectory."
"These results reflect the underlying strength of our business verticals, particularly in the construction sector, where we have expanded significantly in recent months. We continue to maintain a strong appetite for further expansion locally and internationally while retaining specific value creation objectives at the core of our acquisition strategy," noed Sheub.
"There’s more to come for IHC growth, and I believe we have the right strategy in place to unlock the company’s full potential and create significant shareholder value," he added. 
On its strategic investments, Sheub said IHC had entered into an agreement to exchange 58.29% ownership in Multiply Group for consideration of assets amounting to AED5.5 billion.
It exited a 50% shareholding in Eltizam Assets Management to ADQ for no consideration to the group. Simultaneously, ADQ invested AED102 million into Eltizam to finance future expansion. Presently IHC retains a 50% stake in Eltizam.
Its key acquisitions under common control include: Sandstrom Motor Vehicles Manufacturing 65% (SMVM is involved in manufacturing of motor vehicles); Emirates Gateway Security Services 95% (EGSS is involved in security services) and Support Services and Catering (SSC) 100%. SSC is involved in building cleaning services.
According to him, the group acquired investments under common control from Aflaj Investments amounting to AED4.419 billion.
During the period, the Emirati group listed three of its subsidiaries on Abu Dhabi Securities Exchange - Alpha Dhabi Holding, Emirates Stallion Group and Al Seer Marine Supplies and Equipment Company.
IHC now plans to list another unit, Multiply Group, a holding company that invests in tech-focused scalable businesses, on the emirate's main stock market this year, he added.-TradeArabia News Service


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