Abu Dhabi-based IHC posts 20.5% rise in Q1 net profit to Dhs4.3bn

Abu Dhabi-based International Holding Company (IHC) announced its financial results for the first quarter of 2023. The company reported a group net profit of Dhs4.3bn, reflecting a 20.5 per cent rise compared to Q1 2022, with a net profit margin of 27.1 per cent.

IHC achieved a robust revenue increase of 50 per cent versus Q1 2022, reaching Dhs15.7bn during Q1 2023.

The growth was supported by a strong performance across sectors such as asset management, healthcare, IT and communication, real estate and construction, marine and dredging, financial services, food, utilities, and services, and others.

IHC subsidiaries play a key role in growth

Syed Basar Shueb, IHC’s chief executive officer, said: “The post covid era UAE economy has strengthened and would account for those profits. Our subsidiaries, in general, play a critical role in our growth business model today, and they will play an even bigger role going forward as we look to new business acquisitions and keep on delivering value to our shareholders.

“However, in Q2, we will also focus on developing new businesses and continue improving our business operations by integrating more Technology systems and introducing AI solutions across different business verticals.”

#InternationalHoldingCompany Posts 20.5% rise in #FirstQuarter net profit to AED 4.3 billion. https://t.co/nwX8NhjsdM pic.twitter.com/IjzhJZXaza

— International Holding Company (@ihc__official) May 11, 2023

The consolidation of Aldar through IHC’s subsidiary Alpha Dhabi since Q2 2022 has been a contributing factor to the real estate segment’s growth. The acquisition of National Health Insurance (Daman) in October 2022 also boosted financial services.

#InternationalHoldingCompany subsidiary #AlphaDhabi lights up its Q1-2023 with Dh7.3b net profit from 161% rise. https://t.co/buAlwIFOmf pic.twitter.com/FfZ1sHxEYG

— International Holding Company (@ihc__official) May 5, 2023

Shueb added: “At the outset of 2023, the global economy has seen some positive signs as inflation and energy prices ease from their peak levels. The results showed that IHC was delivering on its promises and the first-quarter results reflected the strength and resiliency of our business in the face of global market conditions, despite a slowdown in some of the markets.”

IHC’s financial position is backed by its total assets of Dhs217.4bn as of March 31. While total borrowings increased by 6.5 per cent to Dhs42.5bn, this was mainly due to the company’s strategic investments in new businesses and organic growth. This move enabled IHC to grow its operations and bolster its position in important markets.

“The established business acquisition will continue to be one of our key growth strategies; however, in Q2, we will also focus on newly developed businesses and continue improving our business operations by integrating more Technology systems and introducing AI solutions across different business verticals,” said Shueb.