Alpha Dhabi Holding, a unit of Abu Dhabi's International Holding Company, reported a 161 per cent rise in its first-quarter net profit, driven by a surge in revenue as the company continues to push for more acquisitions.
Net profit for the three months to the end of March jumped to Dh7.3 billion ($1.98 billion), from Dh2.8 billion recorded for the first three month of 2022, the company said on Friday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the reporting period increased 56 per cent on an annual basis to Dh12.8 billion. The company attributed the rise in quarterly revenue to contributions from its existing real estate and industrial portfolio.
“Alpha Dhabi has delivered another set of excellent financial results as we continue to cement our position as a leading regional investment holding company,” Hamad Al Ameri, chief executive of Alpha Dhabi, said.
“Our diversified business continues to grow from strength to strength with a positive market sentiment in the UAE, underpinned by strong economic fundamentals and a buoyant capital markets landscape in contrast with the global outlook.”
Alpha Dhabi, which was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021 and 2022.
The company, on Friday said it would continue to pursue acquisitions and new investments as part of its growth and portfolio diversification strategy.
Earlier this year, the company announced a joint venture with Mubadala Investment Company to co-invest in global credit opportunities.
The two partners aim to collectively invest up to Dh9 billion over the next five years, leveraging Mubadala’s strategic partnership with Apollo, one of the world’s largest alternative asset managers, to access private credit investment opportunities.
The partnership with Mubadala marks Alpha Dhabi's entry into the private credit market as it continues to pursue its diversification strategy and explore investment opportunities in new markets, the company said.
Alpha Dhabi's portfolio expansion outside of the UAE is also supporting the company’s growth. It's overseas revenue accounted for Dh900 million of total revenue in the first three months of this year, a 7 per cent year-on-year increase.
“We have started this year robustly, with our diversified portfolio delivering results, which continue the momentum from last year,” Mr Al Ameri said.
Alpha Dhabi said its balance sheet strengthened during the first quarter, with Dh120.6 billion in total assets, a 129 per cent annual increase, driven by strong investment activity.
The group remains well-funded, with a strong cash position of Dh16.6 billion to support expansion.
“Looking ahead, we will continue to develop our core verticals both organically and through additional investment and acquisition,” Mr Al Ameri said.
“We continue to deploy capital effectively in value-accretive opportunities that support the market leadership of our portfolio companies,” he added.
Alpha Dhabi, which was established in 2013, listed its shares on the ADX in June 2021. Since then, it has rapidly expanded its portfolio, tapping into several industries, including an eye-catching investment in Elon Musk's SpaceX.
In December 2022, Alpha Dhabi acquired a stake in European luxury lifestyle group Nammos, boosting its portfolio in the hospitality and food and beverage industry.
Among its major moves are increasing its stake in Aldar Properties in June 2022 to become the parent company of the Abu Dhabi-based developer, as well as its acquisition of a 25 per cent stake in oil and gas engineering company Gordon Technologies for Dh602 million in November 2022.
“Through our strong operating model, financial position, capital deployment track record and agile investment approach, Alpha Dhabi remains uniquely positioned to continue to drive further growth and capitalise on investment opportunities while also generating value for shareholders in both the short and long term,” the company said.
