IHC posts record Dh10.3 billion net profit for first half

Strong result driven primarily by subsidiary's solid performance and profitable business acquisitions in first half 2022; H1 total revenue climbs 121% to Dh21.93 billion



IHC's strategic acquisition of companies in H1 2022 had a positive impact on the organisation's net worth, as the total assets exceeded the company liabilities increasing from Dh88.98 billion by the end of December 31, 2021, to Dh163.69 billion at the end of June 30, 2022. — File photo
IHC's strategic acquisition of companies in H1 2022 had a positive impact on the organisation's net worth, as the total assets exceeded the company liabilities increasing from Dh88.98 billion by the end of December 31, 2021, to Dh163.69 billion at the end of June 30, 2022. — File photo

By Staff Report

Published: Mon 8 Aug 2022, 7:51 PM

Last updated: Mon 8 Aug 2022, 7:52 PM

International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, has posted new record profits in the first half of 2022, as the company continues its aggressive investment strategy through a focused, high-conviction approach, targeting local and international business acquisitions with sustainable earnings and cash flow growth.

The solid business performance across all IHC subsidiaries has resulted in a significant strengthening of the conglomerate’s balance sheet, as revenue grew by 121 per cent to Dh21.93 billion in the first six months of 2022 compared to the same period last year, while net profit rose 137 per cent to Dh10.35 billion as compared to corresponding period last year.

IHC's strategic acquisition of companies in H1 2022 had a positive impact on the organisation's net worth, as the total assets exceeded the company liabilities increasing from Dh88.98 billion by the end of December 31, 2021, to Dh163.69 billion at the end of June 30, 2022, an immense 84 per cent growth.

Syed Basar Shueb, IHC’s chief executive officer, said: “There remains much to be done to capture our strategy's full potential, strengthening the group's performance even further, as other mega acquisition deals present themselves in the second half of this year, locally and globally. It will continue for many quarters.”

In the second quarter of 2022, IHC completed a Dh7.3 billion ($2 billion) strategic investment deal in the green energy sector with India's Adani Group, one of the largest deals between the UAE and India, representing 4.87 per cent of the total trade between the two countries.

Despite ongoing global market volatility, this first half performance demonstrated the versatility of IHC's portfolio as the group's net profit reached Dh10.35 billion in the second quarter of 2022, rising 137 per cent as compared to June 2021, as a result of major strategic acquisitions and subsidiaries solid performance, while revenue increased 121 per cent to Dh21.93 billion for the six months as compared to same period in the previous year.

In the first half of 2022, the net profit margin stood at 47 per cent, growing by 137 per cent compared to same period last year. Total assets rose to Dh163.69 billion by the end of Q2 2022.

The company’s board has approved the acquisition of three new companies, Cyber Gate, Reach, and Emircon, subject to the authority's approval. While IHC continues to deliver on its strategic growth plans, expanding its portfolio to 372 subsidiaries, an increase of 49 up from 323 in Q1 of 2022, the workforce is now measuring 52,345 employees, growing by over 30,000 since the first quarter of last year.

“Before you can even think about your company's growth trajectory, you need a solid team to help you achieve your goals,” said Shueb.

IHC comprises 8 listed subsidiaries: Alpha Dhabi, Multiply, ESG, Palms Sports, Al Seer Marine, Ghitha, EasyLease, and Q holding, with a capital of Dh1.8 billion in a wide array of sectors, including real estate, agriculture, healthcare, food and beverages, utilities, industrial, IT and communications, retail, entertainment, leisure, and capital.

IHC’s eight listed companies show consistently strong returns for shareholders, resulting in a 1.54 gain on earnings per IHC share from Dh0.88 in Q1 2022 to Dh2.42 fils in the first half of 2022.

— business@khaleejtimes.com


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