IHC's 2022 net profit almost tripled on revenue boost

Strategic acquisitions boosted profitability and helped expand the conglomerate's asset base

Abu Dhabi's International Holdings Company has become one of the most valuable companies in the region. Chris Whiteoak / The National

International Holding Company, the UAE's most valuable listed company, reported an almost threefold increase in its 2022 full-year net profit as acquisitions boosted revenue.

Net profit for the 12 months to the end of December reached Dh32.6 billion ($8.87 billion), up from Dh11.6 billion at the end of 2021, IHC said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.

The group's profit growth was “mainly driven by IHC subsidiaries’ performance and the local and global strategic acquisitions that were completed during the year”, it said.

Revenue for the January-December period grew 78 per cent on an annual basis to Dh50.9 billion.

“The external environment we faced was mixed in some of the key markets. However, our strategy, outlined in 2021, aligns us with the major engines of global growth and we see strong progress across our strategic businesses and priorities,” said Syed Shueb, managing director and chief executive of IHC.

“The global economy remained resilient, [and] with the recent relaxation of Covid-19 restrictions in China providing more grounds for optimism in 2023, IHC will continue to drive commerce and prosperity in markets across the world.”

IHC has investments in sectors including clean energy, food and agriculture, health care, real estate, information technology and artificial intelligence in 20 countries across Asia, Africa, Europe, North America and South America.

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.

The number of its subsidiaries increased to 482 last year, from 302 in 2021.

The total value of the company’s acquisitions in the third quarter alone crossed Dh13.5 billion, including Dh10 billion for Taqa, Dh1.8 billion for Kalyon Enerji, Dh1.5 billion for Burjeel Holdings and Dh250 million for a majority stake in Emircom.

The company has grown to become one of the most valuable listed holding companies in the Middle East has also expanded into countries such as India and Turkey.

In October, IHC made a foray into the South American market with a Dh734 million investment in a Colombian company. It launched a $2.1 billion bid — through its subsidiary IHC Capital — to buy a stake in Colombia's Grupo Nutresa.

In June, IHC and Abu Dhabi-listed Alpha Dhabi announced a combined $50 million investment in aerospace company SpaceX, founded by billionaire businessman Elon Musk.

The acquisition and investment momentum has continued this year.

In February, IHC acquired a 55 per cent stake in recruitment company Reach Employment Services, to increase its market share in the employment sector.

The Dh315 million deal is subject to regulatory approval, IHC said in a February 1 statement to the ADX.

Looking ahead, IHC will target further expansion across all verticals, specifically in the utilities, food and agriculture, and IT sectors, it said.