Abu Dhabi-based IHC reports 236 per cent rise in profit for first nine months

International Holding Company (IHC) has reported that its profits surged by 236 per cent for the nine-month period ending September 30 compared to the same period last year, surpassing its full-year original profit forecast (Dhs17bn).

Continued momentum in strategic direct and indirect acquisitions, locally and internationally, were the main drivers behind the growth rate above the previous year’s quarter, with the company’s total assets increasing to Dhs198.8bn from Dhs64.4bn in Q3 2021.

“This is an outstanding result of which we can all be proud. It reflects the strength that IHC has developed in recent years. Our team’s discipline, continuity, and irrepressible will to move our organisation forward are truly impressive.“ said Syed Basar Shueb, IHC’s CEO.

IHC’s current assets, comprising its subsidiaries, have grown by 138 per cent as of September 30 compared to December 31, 2021. The key contributors to the total current assets include Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine and Multiply Group.

Total cash and bank balances were Dhs31.80bn in Q3 2022 against Dhs20.25bn in 2021.

International Holding Company revenues climbed to Dhs34.3bn, an increase of 87 per cent compared to Dhs18.3bn in the prior year’s third quarter. The rise in quarterly revenues was driven by sustained demand across all business activities and strategic acquisitions over the past 12 months, including Aldar Properties, Arena Events, Yas Clinic, Abu Dhabi Stem Cells Center, Reem Investments, Abu Dhabi Vegetable Oil Company , Ras Al Khaimah Cement Investment, Emircom and Cyber Gate Defense.

While International Holding Company subsidiaries are set for an aggressive growth plan in Q4, the solid nine-month business performance of the subsidiaries this year reflected positively on the company’s Q3 results. IHC’s top five revenue contributors include energy, food sector, healthcare, real estate and utilities for the nine months period ended September 30, followed by other business verticals of the group in the private domain.

Mergers and acquisitions
International Holding Company has increased its merger and acquisitions activity, including in India and Turkey. The company’s acquisition total value in Q3 2022 crossed Dhs13.5bn, which included the Dhs10bn TAQA deal, Dhs1.8bn in Kalyon Enerji, and Dhs1.5bn in Burjeel Holding, and Dhs250m in Emircom while aiming for publicly listing more of its companies on ADX growth markets. IHC said it will continue seeking sizeable acquisitions in Q4 to boost its bottom line.

IHC’s key strategic pillars of growth and success for the coming quarter will be built around strategic acquisitions, diversification, consolidation, divesting and listing.

International Holding Company’s acquisitions in Q3 2022 were focused on supporting the company’s future growth plans in strengthening its operations across targeted sectors such as technology, which included a 55 per cent shareholding in “Cyber Gate Defence” and completing a 15 per cent cornerstone investment in Bayanat AI after the quarter’s end, as the company looks to deepen its engagement and investment in this space by building a giant technology holding arm by 2024.

Expansion outlook
In an environment of high geopolitical and macroeconomic risk, global economic growth is slowing in some of the key markets; International Holding Company retains its drive to increase its global investments in the third quarter.

“Going forward, IHC plans to remain focused on global market expansion, we have set an ambitious long-term goal to grow the number of our global business acquisitions by 70 per cent in the next 12 months. Our strong financial performance positions us well to enter new territories. IHC’s expansion and acquisition appetite will remain robust ahead, as we continue to focus on our capabilities which are informing our growth path, including how we approach acquisitions, as this is one of our competitive advantages,” Shueb added.  

Amid a global expansion push, IHC entered new markets; acquiring a 50 per cent stake in Turkish clean energy company Kalyon Enerji in an Dhs1.8bn transaction and launching of Dhs7.7bn tender offer to acquire, a minimum of 25 per cent and a maximum of 31.25 per cent of the shareholding in Colombia’s food processing conglomerate Grupo Nutresa. The company has also unveiled a growth strategy focused on broadening its investment in South America and Indonesia. 

In other news, IHC is focused on scaling up its information technology businesses, as part of its long-term strategy to grow its capacity in the tech industry. In line with this strategy, IHC has increased its technology deals by 100 per cent compared to last year, crossing Dhs1bn in the first 10 months.

Read: Abu Dhabi’s IHC increases tech deals by 100% over last year, aims to launch tech holding arm