International Holding Company, the diversified Abu Dhabi-based conglomerate, on Monday announced a share buyback programme totaling up to Dh5 billion, as its net profit surged 87.6 per cent in the first quarter of 2024.
This initiative is slated for execution over a one-year timeframe, is designed to cancel the shares bought back in adherence to the trading regulations stipulated by the Abu Dhabi Securities Exchange, the company said in a statement.
“The rationale behind this decision is driven by IHC’s robust financial standing, characterized by significant cash flow and a strong balance sheet. The Buyback Program 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,” IHC said in a statment.
IHC’s growth in net profit was propelled by strong performances across its core sectors (real estate and construction, technology, marine and dredging, food, and services and others), resulting 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.
IHC’s robust performance in Q1 2024 led to a profit after tax margin of 41.6 per cent and earnings per share of Dh2.17. Net profit stood at Dh8 billion for the quarter. Total asset base increased by 28.1 per cent in Q1 2024 (vs. Q4 2023), to Dh338.4 billion
Syed Basar Shueb, CEO of IHC, says: “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.”
The group took a significant step towards achieving its long-term growth and sustainability plans in Q1 2024 with the launch of the “next generation holding company”, 2PointZero. It aims to focus on key sectors including financial services, mineral and resource management, transformative technology & 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.