Abu Dhabi's International Holding Company said second-quarter net profit nearly doubled as revenue surged on the back of recent acquisitions and expansion across its main business units.
Net profit attributable to the owners of the company for the three months to the end of June increased by 92 per cent to Dh1.3 billion ($350.4 million), compared with the same period in 2020, while revenue more than quadrupled to Dh7.65bn, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
"We are pursuing a strategy that combines transformative acquisitions with further organic growth by our major verticals and have already built a conglomerate with diversified and complementary business activities that extend across the region," said chief executive and managing director Syed Shueb.
"IHC maintains a strong appetite for further expansion and will look to harness increased revenue and operational synergies across the group.”
IHC became Abu Dhabi's most valuable listed company on June 27, when its shares surged by about 15 per cent after the listing of its subsidiary Alpha Dhabi.
The listing also pushed the market value of the Abu Dhabi Securities Exchange to more than Dh1 trillion for the first time.
The company's share price jump caused IHC’s market capitalisation to rise to Dh201.7bn at the time, making it the biggest company on the exchange ahead of Etisalat and First Abu Dhabi Bank. The market capitalisation of the ADX is now more than Dh1.3tn.
IHC's diversified portfolio includes more than 180 legal entities, employs 48,000 people and operates in seven main business segments including property, health care, food, utilities, industrials, digital and capital.
Alpha Dhabi reported a second-quarter net profit of Dh1.63bn and revenue of Dh4.48bn, IHC said.
The conglomerate continued its acquisition spree in the second quarter, buying a 45 per cent controlling stake in Alpha Dhabi in April. It later increased its holding, taking its total stake in Alpha Dhabi to 45.72 per cent.
IHC also increased its stake in Elon Musk's Space X through its investment in VY GP Limited's fund.
IHC acquired a 60 per cent stake in Afkar Financial and Property Investments, a 48 per cent share in Emirates Driving Company, a 60 per cent interest in Royal Horizon Holding and its subsidiaries, a 40 per cent stake acquired for consideration in Response Plus Medical Services and an investment in the Sinovation Disrupt Fund, a US-based vehicle that invests in artificial intelligence and other advanced enabling businesses.
Alpha Dhabi has also made several acquisitions during the second quarter. It bought 100 per cent of Murban Energy, 65.1 per cent of National Marine Dredging, 70 per cent of Mawarid Holding Investment, 100 per cent of Sublime Commercial Investment and 31.5 per cent of Pure Health Medical.
IHC's acquisition spree in the first six months of 2021 has led to the substantial growth of the company's balance sheet and its value. At the end of June, it had total assets worth Dh58.32bn, up from Dh14.01bn at the end of last year.
It also listed one of its subsidiaries, Emirates Stallion Group, on the ADX.
IHC's first-half net profit quadrupled to Dh2.6bn from Dh782m in the previous year. First-half revenue more than quadrupled year-on-year to Dh9.93bn.
The conglomerate is bullish about the outlook for its performance for the remainder of the year.
IHC "has continued to supersede its own performance quarter after quarter and year after year, and this would be the trend for the rest of 2021", the company said in the bourse filling.
"IHC will carry on its drive to identify assets and businesses to further expand its diversification strategy."