ABU DHABI, International Holding Company (ADX: IHC), one of the largest corporate investment holding firms in the Middle East and Africa, headquartered in Abu Dhabi, announced today its financial results for the third quarter ended September 30, 2022, with the profit surging236% for the 9-month period compared to the same period last year, surpassing its full year original profit forecast (AED 17bn).
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 AED 198.8bn from AED 64.4bn 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 its irrepressible will to move our organization forward are truly impressive.“ said Syed Basar Shueb, IHC’s Chief Executive Officer.
IHC’s current assets, comprising its subsidiaries, have grown by 138% as of 30th September 2022 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 was AED 31.80bn in Q3 2022 against AED 20.25bn in 2021.
International Holding Companyrevenues climbed to AED 34.3bn, an increase of 87% as the company emerged stronger in the present competitive business climate compared to AED 18.3bn 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 PJSC, Arena Events Limited, Yas Clinic, Abu Dhabi Stem Cells Center, Reem Investments PJSC, Abu Dhabi Vegetable Oil Company (ADVOC), Ras Al Khaimah Cement Investment PJSC (RAKCIC), Emircom LLC and Cyber Gate Defense LLC.
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, 2022, followed by other business verticals of the group in the private domain.
International Holding Company has increased its M&A activity, including in India and Turkey. The company’s acquisition total value in Q3 2022 crossed AED 13.5bn, which included the AED 10bn TAQA deal, AED 1.8bn in Kalyon Enerji and AED 1.5bn in Burjeel Holding, and AED 250mn in Emircom while aiming for publicly listing more of its companies on ADX growth markets. IHC will continue seeking sizeable acquisitions in Q4 to boost its bottom line.
IHC and its subsidiaries will continue to focus on their vision to build a robust and diversified operating asset-holding company through strategic acquisitions in growth-driven industries and the creation of innovative companies that add value and bring sustainable improvements to local businesses and communities in the UAE and the international territories in which IHC subsidiaries operate. 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% shareholding in “Cyber Gate Defence” and completing a 15% cornerstone investment in Bayanat AI PLC 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.
Global Market 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% 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 is 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% stake in Turkish clean energy company Kalyon Enerji in a AED 1.8bn transaction and the launching of AED 7.7bn tender offer to acquire, a minimum of 25% and a maximum of 31.25% 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.
Source: Emirates News Agency