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International Holding Company (IHC) Its profit surged 236% year-on-year for the nine-month period ended September 30, beating its original profit forecast for the full year of Dh17 billion, the report said.
Continued momentum in both local and international strategic direct and indirect acquisitions was the main driver of growth above the previous quarter, with the company’s total assets increasing to AED198.8 billion from AED64.4 billion in Q3 2021.
“It was an outstanding result and we can all be proud of it. It reflects the strength that IHC has developed in recent years. The discipline, continuity and irrepressible will of our team to move our organization forward is truly impressive.” Say Syed Basar Shueb, CEO of IHC.
As of September 30, IHC’s current assets, including its subsidiaries, increased 138% compared to December 31, 2021. Major contributors to total liquid assets include Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine and Multiply Group.
Cash and bank balances totaled AED31.8 billion in the third quarter of 2022, compared to AED20.25 billion in 2021.
International holding company Revenue climbed to AED34.3 billion, an 87% increase from AED18.3 billion in the third quarter of last year. This Quarterly revenue growth was driven by continued demand across all business activities and strategic acquisitions over the past 12 months, including Aldar Properties, Arena Events, Yas Clinic, Abu Dhabi Stem Cell Centre, Reem Investments, Abu Dhabi Vegetable Oil Company, Ras Al Khaimah Cement Investment, Emircom and Cyber Gate Defense.
Although the subsidiary of the international holding company will have aggressive growth plans in the fourth quarter, the solid operating performance of the subsidiary for nine months this year has had a positive impact on the company’s performance in the third quarter. For the nine-month period ended Sept. 30, IHC’s top five revenue contributors included energy, food industry, healthcare, real estate and utilities, followed by the group’s other verticals in the private sector.
M&A
International holding companies increased M&A activity, including in India and Turkey. The company’s total acquisitions in the third quarter of 2022 were valued at over AED13.5 billion, including the AED10 billion TAQA deal, the AED1.8 billion Kalyon Enerji deal, the AED1.5 billion Burjeel Holdings and AED 250 million for Emircom, while aiming to bring more companies public on ADX to grow the market. IHC said it will continue to seek large acquisitions in the fourth quarter to boost its profits.
Key Strategic Pillars for IHC Growth and Success The next quarter will revolve around strategic acquisitions, diversification, integration, divestitures and going public.
The International Holding Company’s acquisitions in the third quarter of 2022 are focused on supporting the company’s future growth plans to strengthen its business in target areas such as technology, including a 55% stake in “CyberGate Defence” and the completion of a After Bayanat’s 15% cornerstone investment closes in the quarter, the company hopes to deepen its involvement and investment in the sector by building a huge technology holding unit by 2024.
Expansion prospects
Global growth is slowing in some key markets in an environment of elevated geopolitical and macroeconomic risks; the international holding company maintained its momentum to increase its global investments in the third quarter.
“Going forward, IHC plans to continue to focus on global market expansion and we have set an ambitious long-term goal of increasing the number of acquisitions of our global business by 70% over the next 12 months. Our strong financial performance allows us to Well positioned to enter new territory. Expansion and acquisition demand for IHC will remain strong going forward as we continue to focus on the ability to inform our growth path, including how we handle acquisitions as this is one of our competitive advantages ,” Shueb added.
Driven by global expansion, IHC enters new markets; acquiring 50% stake in Turkish clean energy company Kalyon Enerji in AED1.8 billion deal and launching a AED7.7 billion offer to acquire at least 25% of Colombian Food Processing and Up to 31.25% stake in the conglomerate Grupo Nutresa. The company also unveiled a growth strategy focused on expanding investments in South America and Indonesia.
In other news, Immunohistochemistry Focused on expanding its information technology business as part of its long-term strategy to develop capabilities in the tech industry. Under this strategy, IHC’s technology deals increased by 100% compared to last year, surpassing AED1 billion in the first 10 months.
read: Abu Dhabi’s IHC increases tech deals by 100% from last year, aims to launch tech holding unit
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