IHC’s second-quarter profit soars on revenue surge

Abu Dhabi company reports $1.24bn in profit for the three months to the end of June

IHC has made several strategic investments in recent quarters to further expand its asset base. Photo: IHC

International Holding Company, the UAE's most valuable listed company, reported a more than 62 per cent jump in second-quarter net profit on the back of higher revenue.

Net profit attributable to the owners of the company for the three months to the end of June rose to Dh4.56 billion ($1.24 billion), IHC said in a filing on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the second quarter grew by 13 per cent year-on-year to about Dh13 billion.

“The group has remained resilient despite global geopolitical conflicts, supply chain disruptions, and a high inflation environment, all of which have had varying economic effects on our operating businesses,” said Syed Basar Shueb, chief executive of IHC.

“The results confirm that we are on the right track towards the goals we set for ourselves last December, with several acquisitions being completed in H1 2023 and a healthy pipeline paving the way for future growth.”

The company’s first-half profit surged more than 62 per cent to Dh7.17 billion, as revenue grew more than 30 per cent to Dh28.66 billion, driven by strong growth of IHC's assets, particularly in the marine and dredging, real estate, and financial services segments, the company said.

IHC has investments in sectors including clean energy, food and agriculture, health care, property, information technology and artificial intelligence in 20 countries across 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.

In June, it signed a framework agreement for a share swap with Colombian businesses as the Abu Dhabi conglomerate seeks to expand its assets in South America.

As part of the deal, IHC Capital, a subsidiary of IHC, will receive a 2.45 per cent stake in Grupo Nutresa, one of the biggest food-processing companies in Colombia, in exchange for its 1.64 per cent stake in Grupo Sura, a Latin American investment manager with investments focused on financial services, it said.

In May, IHC Capital joined forces with Grupo Nutresa, Grupo Sura, Grupo Argos – a Colombian conglomerate with investments in the cement and energy industries – and other business shareholders.

The company is also teaming up with Aldar Properties and Adnec Group to create the Middle East's largest property and facilities management entity.

Earlier this week, Abu Dhabi’s investment and holding company ADQ and a unit of IHC submitted an offer to combine their shareholdings in Modon Properties into Q Holding.

ADQ will also add its shareholding in Abu Dhabi National Exhibitions Company into Q Holding to create a property company with assets worth Dh44 billion.

IHC said its total assets stood at Dh229.59 billion as of June 30, posting a 40.3 per cent increase compared to the first half of last year.

In response to the prevailing slower economic backdrop, IHC said its strategy is inclined towards more domestic business acquisitions, leveraging the UAE's stable economic environment, investor-friendly government policies, strategic location, tax incentives and diverse property market.

“The supply-chain disruptions and rising geopolitical tensions have brought the risks and potential benefits and costs of geoeconomic fragmentation to the centre of the policy debate, and this has reshaped the geography of foreign direct investment for many organisations, including IHC, impacting the global economy,” said Mr Shueb.