Abu Dhabi-based IHC reports 18 percent profit growth in first half

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Abu Dhabi Conglomerate International Holding Company (IHC) said its net profit in the first half of the year rose 18 percent to Dh12.3 billion from Dh10.4 billion a year earlier, driven by solid growth and acquisitions in key sectors including energy, mining, agriculture and food.

IHC reported revenue of AED 41.7 billion in the first half of 2024, up 46 percent year-on-year (YoY) compared to AED 28.7 billion in the same period a year earlier, meaning the conglomerate maintained its growth trajectory.

The financial position of the holding company is supported by its total assets of AED 362.9 billion (as of June 30), which underlines its ability to navigate dynamic market conditions while maintaining stable growth.

“Our half-year results underscore the relentless momentum with which we are executing on our strategic objectives locally and internationally. Our ability to outperform market growth in key segments, driven by active investments by our subsidiaries, solidifies our market leadership position,” said Syed Basar Shueb, CEO of IHC.

Shueb said the company’s financial health and dynamic approach to investing ensure “we are well-positioned for sustainable growth and flexibility through the rest of 2024 and beyond.”

Meanwhile, IHC has created a new trade-focused holding company, Rorix Holdings, to accelerate trade volumes, attract foreign investment and foster economic partnerships. The holding company will offer financial services, trade finance solutions, consulting, commodities and trade insurance sectors.

The launch of Rorix marks IHC’s second new holding company in the first half of the year, following the founding of 2PointZero in early January.

The 100 billion dirham ($27 billion) investment vehicle boasts a diversified portfolio that includes Abu Dhabi’s newest fund, Lunate, International Resources Holding, private investment firm Chimera, Egypt’s Beltone Financial, cryptocurrency mining firm Citadel Technologies and Middle Eastern firm Sagasse Investments.

In June, IHC shareholders gave the green light to a share buyback plan worth $1.36 billion (5 billion dirhams), which is about 0.6 percent of the conglomerate’s capital.

Formerly known as International Fish Farming Holding, IHC has grown exponentially to now include over 900 subsidiaries and a market capitalization of AED 891.7 billion (as of August 7, 2024) – surpassing the market value of some of the world’s biggest brands, including Walt Disney, McDonald’s and L’Oréal.

Read: Syed Basar Shueb on How IHC Cracks the Growth Code