Abu Dhabi, 11 May, 2023: International Holding Company (ADX:IHC), the global diversified Abu Dhabi-based conglomerate, today announced its financial results for the first quarter of 2023. IHC recorded a group net profit of AED 4.3 billion, representing a 20.5% increase compared to Q1 2022, with a net profit margin of 27.1%, demonstrating the continued momentum in executing its strategy and commitment to generating higher shareholder value.

 

IHC achieved a solid revenue increase of 50% versus Q1 2022, totaling AED 15.7 billion during the first quarter of 2023. The significant growth was supported by positive performance in key segments such Asset management, Healthcare, IT and Communication, Real Estate and Construction, Marine and Dredging, Financial Services, Food, Utilities, and Services and others.

 

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 it will play an even bigger role going forward as we look to new business acquisitions and to 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.” Shueb added.

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

 

“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.” said Shueb. 

 

IHC's strong financial position is evidenced by its stable balance sheet, with total assets of AED 217.4 billion as of 31 March 2023. While total borrowings increased by 6.5% to AED 42.5 billion, this was mainly due to the company's strategic investments in new businesses and organic growth. This approach has enabled IHC to expand its operations and strengthen its position in key 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.

 

IHC’s First Quarter Summary 2023

• Acquired a 55% majority stake in Reach Employment Services in a transaction worth AED 315 million.

• ESG Companies Management acquired 100% shares in TriStar Investment L.L.C for AED 250 million which include 50% of Eskan Al Jamae.

• ESG Capital Holding LLC acquired a 10% interest in Progressive Real Estate Development LLC.

• Aldar Properties acquired a 75% interest in Mustard and Linen Interior Design Holdings Limited for AED 25 million.

• Oxinus Holding Limited acquired a 100% interest in Spotlightpos Limited for AED 8.3 million.

• Omorfia Group LLC acquired a 100% equity interest in Fisio Therapy and Rehabilitation Center LLC.

 

Economic Outlook 

The global economic outlook remains uncertain, with mixed signals from the data. While inflation continues to be a concern, there are also signs of a slowdown in economic activity. Central banks face a challenging dilemma between further tightening policy to tackle inflation or risking a recession. While the economies of the Middle East and Central Asia (ME&CA) proved resilient in 2022, despite a series of global shocks, IHC Q2 market outlook will remain cautiously optimistic. Growth is expected to experience a slower period in the MENA region as policies tighten to fight inflation, reduce vulnerabilities, and rebuilding of buffers start to dent economic activity in many markets, and agreed oil production cuts curb growth in oil exporters.