Abu Dhabi's IHC reports increased 2023 net profit on strong revenue

The company’s net profit jumped to $9bn in the January-December period

Earlier this month, IHC announced the formation of a new holding company, 2PointZero. Photo: IHC

International Holding Company, one of the UAE's most valuable listed companies, reported a slight increase in its 2023 net profit 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 on an annual basis to Dh60.1 billion.

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 in a statement.

IHC’s earnings per share rose 81.5 per cent year-on-year 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 it's 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 cap 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 in a separate bourse filing.

“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," Falal Ameen, group chief executive of Ghitha, said.

Earlier this 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.

In October, IHC it increased its shareholding in Indian conglomerate Adani Enterprises under its strategy to “explore unique investment opportunities in India”.

And in August, it acquired a 49 per cent stake in Abu Dhabi-based developer Modon Properties. 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.