IHC reports increased full-year net profit on back of revenue growth

International Holding Company, one of the UAE’s most valuable listed companies, reported a slight increase in its net profit last year as strategic acquisitions and strong performance across business units drove revenue.

Net profit for the 12-month period to the end of December climbed to Dh32.7 billion ($8.9 billion) from Dh32.5 billion recorded in 2022, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue at the end of December climbed nearly 18 per cent to Dh60.1 billion on an annual basis.

The rise in revenue is a “direct result of targeted acquisitions along with the solid performance of IHC’s portfolio companies, demonstrative of the effective implementation of the strategic road map”, the company said.

IHC’s earnings per share rose 81.5 per cent annually to Dh12.36 last year, underpinning increased profitability and investor returns. Assets at the end of last year climbed to more than Dh264 billion, up almost 16 per cent from Dh228 billion reported in 2022.

IHC and its portfolio companies, like their peers in the GCC and the broader Mena region, are making strategic acquisitions to expand into new sectors and broaden their revenue base to better compete in the new economy sectors.

Founded in 1998 as part of an initiative to diversify and develop non-oil business sectors in the UAE, IHC has grown to become the most valuable listed holding company in the Middle East, with a market capitalisation of Dh876.53 billion.

The company has more than 500 subsidiaries and investments in sectors including clean energy, food and agriculture, health care, property, utilities, information technology and artificial intelligence across Mena markets and several countries in Asia, Africa, Europe and the Americas.

The conglomerate, whose subsidiaries include Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine and Multiply Group, has made several strategic investments in recent quarters to further expand its asset base.

On Monday, IHC subsidiary Ghitha Holding said it has expanded into the logistics sector after the Abu Dhabi-based company’s unit Ghitha Aeroinvest took a 44 per cent stake in Turkey’s commercial cargo company MNG Havayollari ve Tasimacilik (MNG Airlines).

The $211.2 million share purchase agreement marks a “significant stride towards diversifying Ghitha Holding’s portfolio”, the company said. “The integration of MNG Airlines into our portfolio represents a significant leap in our journey towards becoming a regional powerhouse in the food trading sector,” said Falal Ameen, Ghitha group chief executive.

Last month, IHC also announced the formation of a new holding company, 2PointZero, which will have more than Dh100 billion in assets.

The new “next generation” holding company “is committed to having a transformative impact globally”, Sheikh Tahnoun bin Zayed, National Security Adviser, Deputy Ruler of Abu Dhabi and IHC chairman, said at the time.