International Holding Company, a diversified Abu Dhabi-based conglomerate, has posted new record profits in the first half of 2022. The company attributes this to the aggressive investment strategy through a focused, high-conviction approach, targeting local and international business acquisitions with sustainable earnings and cash flow growth.
The solid business performance across all IHC subsidiaries has resulted in a significant strengthening of the conglomerate’s balance sheet, as Revenue grew by 121 percent to AED 21.93 billion in the first six months of 2022, compared to the same period last year, while Net Profit rose 137 percent to AED 10.35 billion as compared to 1H 2021.
IHC’s strategic acquisition of companies in H1 2022 had a positive impact on the organization’s net worth, as the Total Assets exceeded the company liabilities increasing from AED 88.98 billion by the end of December 31, 2021, to AED 163.69 billion at the end of June 30, 2022– a 84 percent growth.
In the second quarter of 2022, IHC completed a Dh7.3 billion ($2bn) strategic investment deal in the green energy sector with India’s Adani Group, one of the largest deals between the UAE and India, representing 4.87% of the total trade between the two countries.
Despite ongoing global market volatility, this first half performance demonstrated the versatility of IHC’s portfolio as the group’s net profit reached AED 10.35 billion in the second quarter of 2022, rising 137% as compared to June 2021, as a result of major strategic acquisitions and subsidiaries solid performance, while Revenue increased 121% to AED 21.93 billion for the six months as compared to same period in the previous year.
In the first half of 2022, the net profit margin stood at 47% percent, growing by 137% percent compared to same period last year. Total assets by end of Q2 2022 were AED 163.69 billion – an increase of AED 74.71 billion from December 31, 2021
The company’s strategic investments included Dh7.3 billion ($2 billion) in the Indian conglomerate Adani Group, 70% stake in Arena, the global event structures and services company, another AED 92 million ($25 million) into SpaceX and a 25 per cent share in Dubai-based trading company Invictus.
The company’s board has approved the acquisition of three new companies, Cyber Gate, Reach, and Emircon, subject to the authority’s approval. While IHC continues to deliver on its strategic growth plans, expanding its portfolio to 372 subsidiaries, an increase of 49 up from 323 in Q1 of 2022, the workforce is now measuring 52,345 employees, growing by over 30,000 since the first quarter of last year.
IHC comprises 8 listed subsidiaries: Alpha Dhabi, Multiply, ESG, Palms Sports, Al Seer Marine, Ghitha, EasyLease, and Q holding, with a capital of AED 1.8 billion in a wide array of sectors, including real estate, agriculture, healthcare, food and beverages, utilities, industrial, IT and communications, retail, entertainment, leisure, and capital.
IHC’s eight listed companies show consistently strong returns for shareholders, resulting in a 1.54 gain on earnings per IHC share from AED 0.88 in Q1 2022 to AED 2.42 fils in the first half of 2022.
Also published on Medium.
