International Holding Company (IHC), a diversified Abu Dhabi-based conglomerate, reported a strong performance in the first quarter of 2024, with a net profit surge of 87.6 percent. This impressive growth led to a profit after tax margin of 41.6 percent and earnings per share of Dh2.17. In response to this success, IHC announced a share buyback program totaling up to Dh5 billion. The program, set to be executed over a one-year timeframe, is aimed at enhancing shareholder value through increased earnings per share.
The decision to implement the share buyback program was driven by IHC’s robust financial standing, characterized by significant cash flow and a strong balance sheet. The company stated that the buyback program will be carried out post general assembly meeting approval and requisite regulatory authorizations, including those from the Abu Dhabi Securities Exchange. The growth in net profit was attributed to strong performances across IHC’s core sectors, such as real estate and construction, technology, marine and dredging, food, services, and others, resulting in a 22.5 percent increase in revenue to Dh19.3 billion.
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, while the marine and dredging sector saw continued positive momentum from NMDC. In Q1 2024, IHC’s total asset base increased by 28.1 percent compared to Q4 2023, reaching Dh338.4 billion. Syed Basar Shueb, CEO of IHC, expressed confidence in the company’s ongoing resilience and strategic focus on growth through selective acquisitions that enhance operational synergies and solidify its position as a global industry leader.
In addition to its financial success in Q1 2024, IHC took a significant step towards achieving its long-term growth and sustainability plans with the launch of the “next generation holding company”, 2PointZero. This new entity will focus on key sectors including financial services, mineral and resource management, transformative technology & AI, and digital and cryptocurrency ecosystems. Shueb expressed optimism about the future as IHC continues to diversify its portfolio, penetrate new markets and regions, and maximize its impact. The company’s dedication to sustainability and staying at the forefront of innovation and technology positions it well to navigate the challenges of a dynamic and evolving economic landscape.
Overall, IHC’s strong performance in the first quarter of 2024, coupled with the announcement of a share buyback program and the launch of 2PointZero, reflects the company’s commitment to driving growth, enhancing shareholder value, and positioning itself as a leader in the global industry. With a focus on strategic acquisitions, operational synergies, and sustainability, IHC is well-positioned to capitalize on opportunities in the market and navigate the changing economic landscape with confidence.
