IHC Posts AED 8 Billion Net Profit For Q1 2024, Initiates AED 5 Billion Share Buyback

International Holding Company (IHC) has reported an impressive 87.6 percent increase in net profit for the first quarter of 2024, reaching AED8 billion, up from AED4.3 billion in the same period last year. This surge in profitability underscores IHC's unwavering commitment to driving shareholder value and marks a significant milestone in the company's financial performance.

The remarkable growth witnessed by IHC can be attributed to its strong performance across its core sectors, including Real Estate & Construction, Technology, Marine & Dredging, Food, and Services & Others. This diversified business model has facilitated a 22.5 percent rise in revenue to AED19.3 billion in Q1 2024 from AED15.7 billion in Q1 2023.

A pivotal moment for IHC in February 2024 was the strategic consolidation of assets with entities such as Q Holding, Modon, ADNEC, and Miza Investment. This move significantly bolstered the company's real estate segment. Moreover, the marine and dredging sector continued its upward trajectory, thanks to NMDC's sustained success from the previous fiscal year.

The company's financial health is further evidenced by a Profit after Tax margin of 41.6 percent and earnings per share standing at AED 2.17. Syed Basar Shueb, CEO of IHC, commented on the results, highlighting the company's resilience and strategic growth initiatives through selective acquisitions that bolster operational synergies and reinforce its position as a global industry leader.

In a strategic move towards long-term growth and sustainability, IHC launched "next generation holding company" 2PointZero in Q1 2024. This new entity will focus on critical sectors such as financial services, mineral and resource management, transformative technology & AI, as well as digital and cryptocurrency ecosystems.

Shueb expressed optimism about the future, emphasizing the company's efforts to diversify its portfolio and expand into new markets and regions. He also noted IHC's commitment to sustainability and staying ahead in innovation and technology as key factors in navigating the challenges of an ever-changing economic landscape.

Another significant development during the first quarter was the Board's approval of a Share Buyback Programme worth up to AED 5 billion. Scheduled for execution over a one-year period, this initiative aims to cancel the repurchased shares in compliance with Abu Dhabi Securities Exchange trading regulations. The decision reflects IHC's strong financial position, characterized by substantial cash flow and a solid balance sheet. The Buyback Programme is set to proceed following approval from the general assembly meeting and necessary regulatory approvals, including those from the Abu Dhabi Securities Exchange. This strategic move is intended to further enhance shareholder value by increasing earnings per share.

IHC's robust performance in Q1 2024 not only demonstrates its financial strength but also its strategic foresight in positioning itself for sustainable growth amidst a dynamic global economic environment.

With inputs from WAM