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IHC records net profit of Dh8 billion in Q1 2024, launches Dh5 billion Share Buyback Programme

IHC records net profit of Dh8 billion in Q1 2024, launches Dh5 billion Share Buyback Programme
6 May 2024 19:27

ABU DHABI (WAM)

The International Holding Company (IHC) announced an 87.6 percent growth for the first quarter of 2024 (Q1 2024), with Dh8 billion in net profit, compared to Dh4.3 billion in Q1 2023.

IHC showcased significant growth and a steadfast commitment to enhancing shareholder value.

This growth was propelled by strong performances across IHC’s core sectors (Real Estate & Construction, Technology, Marine & Dredging, Food, and Services & Others), resulting in a 22.5 percent increase in Revenue to Dh19.3 billion, compared to Dh15.7 billion in Q1 2023.

Notably, 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.

Moreover, 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 percent and earnings per share of AED 2.17.

CEO of IHC, Syed Basar Shueb, 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.”

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.

The aim is 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.

During the first quarter Board Meeting, the Group made a remarkable decision to approve a Share Buyback Programme, totalling up to Dh5 billion.

This initiative, 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, subject to determinations by the Board of Directors.

The rationale behind this decision is driven by IHC’s robust financial standing, characterised by significant cash flow and a strong balance sheet.

The Buyback Programme will be carried out post general assembly meeting approval and requisite regulatory authorizations, including those from the Abu Dhabi Securities Exchange.

The Buyback Programme is intended to enhance shareholder value through increased earnings per share.

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