International Holding Co (IHC), an Abu Dhabi–based conglomerate, has reported a four-fold increase in net profit for the second quarter of 2021 year-on-year at 2.87 billion dirhams ($781 million). This increase has mainly been driven by strategic acquisition of companies, a strategy IHC intends to continue pursuing.
Revenue jumped more than fourfold to 7.65 billion dirhams for the three-month period while total assets at the end of Q2 were 58.32 billion dirhams, an increase of 44.30 billion from December 31, 2020, the Abu Dhabi Securities Exchange (ADX) listed company said in a statement on Monday.
For half-year, 2021 IHC reported a five-fold increase to 4.36 billion dirhams.
Syed Basar Shueb, CEO and Managing Director, said the conglomerate produced exceptional growth over the last year despite the challenging economic environment.
“We are pursuing a strategy that combines transformative acquisitions with further organic growth by our major verticals and have already built a conglomerate with diversified and complementary business activities that extend across the region. IHC maintains a strong appetite for further expansion and will look to harness increased revenue and operational synergies across the group.”
During the period, IHC listed two of its subsidiaries--Alpha Dhabi Holding and Emirates Stallion Group PJSC--on the ADX.
Through Alpha Dhabi Holding, in which it acquired a 45 percent stake in April, IHC acquired 100 percent of Murban Energy Limited, 65.1 percent equity in National Marine Dredging Co., 70 percent equity in Mawarid Holding Investment, 100 percent in Sublime Commercial Investment and 31.5 percent equity in Pure Health Medical.
Early this year, IHC acquired 60 percent stake in Afkar Financial and Property Investments. Through its subsidiary, Multiply Group, it took a 48 percent in Emirates Driving Company.
IHC shares were trading 1.8 percent higher at 139 dirhams shortly after market open on Monday.
(Writing by Brinda Darasha; editing by Seban Scaria)
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© ZAWYA 2021