IHC sees Q1 profit up 88%, launches Dh5b share buyback

Abu Dhabi: International Holding Company (IHC) recorded an 87.6 per cent profit growth for the first quarter of 2024, aided by growth across its core sectors..With Dh8 billion in net profit, compared to Dh4.3 billion in Q1 2023, the ADX-listed diversified asset holding company said it saw “significant” growth across its core sectors - real estate and construction, technology, marine and dredging, food, and services, among others. This resulted in a 22.5 per cent increase in revenue to Dh19.3 billion, compared to Dh15.7 billion in Q1 2023. “The strategic consolidation of assets from Q Holding with Modon, ADNEC, Miza Investment, and other entities in February 2024 significantly boosted the real estate segment. Additionally, the marine and dredging sector saw continued positive momentum from NMDC, carrying forward the success from FY23,” it added. IHC’s performance in Q1 2024 led to a profit after tax margin of 41.6 per cent and earnings per share of Dh2.17. Syed Basar Shueb, CEO of IHC, said, “This quarter’s record revenues underscore our ongoing resilience and strategic focus on growth through selective acquisitions that enhance operational synergies and solidify our standing as a global industry leader.” In Q1, the group launched the “next generation holding company”, 2PointZero, aiming to focus on key sectors including financial services, mineral and resource management, transformative technology and AI, as well as digital and cryptocurrency ecosystems. “With the introduction of a new flagship entity, we are optimistic about the future as we continue to diversify our portfolio and penetrate new markets and regions, aiming to maximize our impact. Our dedication to sustainability and staying at the forefront of innovation and technology positions us well to navigate the challenges of a dynamic and evolving economic landscape,” Shueb added. During the first quarter board meeting, the group decided to approve a share buyback programme, totalling up to Dh5 billion. This initiative, slated for execution over a one-year timeframe, will cancel the shares bought back in adherence to the trading regulations stipulated by the Abu Dhabi Securities Exchange, subject to determinations by the board of directors, the company noted. The Buyback Programme will be carried out post general assembly meeting approval and requisite regulatory authorisations, including those from the Abu Dhabi Securities Exchange. “The buyback programme is intended to enhance shareholder value through increased earnings per share,” it added. - with inputs from WAM