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Abu Dhabi IHC's 2020 net profit grows six-fold to $816m

ABU DHABI, March 7, 2021

Abu Dhabi-based strategic investment company International Holding Company has reported a net profit of AED3 billion ($816 million) for 2020, a six-fold, year-on-year increase, driven by a series of acquisitions as well as organic growth across its diversified portfolio.
 
In its fully audited financial statements for the full year 2020, published recently, the company has reported annual revenues of AED7 billion, compared to AED1.26 billion in 2019.
 
The Abu Dhabi group’s total assets increased to AED14 billion as of December 31, 2020 from AED4 billion a year earlier. The company held cash and cash equivalents of AED3.7 billion at the end of 2020.
 
During the period, IHC had experienced rapid expansion across its major business segments, which include healthcare, food products, real estate, agriculture and digital technologies. 
 
The expansion is the result of well thought out strategic acquisitions of companies within its industry, through business combinations and common control, which would help drive value and long-term growth.
 
The Emirati investment group had also sought investments in significant minority stakes in growth companies.
 
IHC has taken stakes in California-based aerospace company SpaceX through a private equity fund, as well other investments in UK-based DNA sequencing firm Oxford Nanopore technologies, New York digital marketing company Yieldmo, and Abu Dhabi National Oil Company (ADNOC).
 
On its solid performance, CEO and Managing Director Syed Basar Shueb, said: "IHC has transformed into a major investment company that benefits from a robust balance sheet and a highly diversified portfolio that spans six vertical segments."
 
"Although our growth has been partially driven by strategic acquisitions and investments, our subsidiaries have also delivered strong organic revenue growth of 165 percent, displaying significant resilience when faced with considerable global macro-economic challenges. IHC has built a solid platform for value creation in the coming years, and we are well positioned to invest further in high potential opportunities," he added.
 
According to him, IHC has a clear strategy of enhancing its portfolio through acquisitions, strategic investments, restructuring, consolidation, diversification, and divesting.
 
Comprising more than 25 entities, the current six vertical segments: Industrial, Capital, Digital, Food, Utilities and Real Estate will be expanded in 2021 to include Education, Leisure and Retail, Agriculture and Healthcare.
 
IHC will continue to enhance shareholder value through growth, operational synergies and maximise cost efficiencies, said the top official.
 
It will also continue to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad, he added.-TradeArabia News Service

 




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