Abu Dhabi-based Alpha Dhabi Holding recorded a group net profit of AED4.6 billion ($1.25 billion) in the first quarter (Q1) of 2024, demonstrating its continued momentum in executing its strategy across key sectors and its dedication to generating greater value for shareholders.
The strong financial performance across the group during Q1 ’24 was highlighted by a record revenue of AED14.2 billion ($3.86 billion), marking an 11 percent year-on-year increase. Additionally, the net profit from operations saw a remarkable surge of 232 percent compared to Q1 2023. The Group’s cash balance also experienced a 29 percent year-on-year growth, reaching AED21.5 billion ($5.85 billion).
According to Mohamed Thani Alrumaithi, chairman of Alpha Dhabi Holding, the significant profitability of Alpha Dhabi serves as an indication of their capability to successfully implement their growth strategy, showcasing their dedication to excellence. The results for the quarter depict a consistent year-on-year growth, which strongly signifies their commitment to the vital sectors of the UAE’s economy, both in the present and for the future, he added.
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For his part, Hamad Al Ameri, CEO of Alpha Dhabi Holding, expressed that Alpha Dhabi has commenced the year 2024 in a manner consistent with how they concluded 2023, demonstrating robust performance and further capitalizing on their unwavering growth momentum. He highlighted their remarkable achievement of generating a record revenue of AED14.2 billion, along with a notable increase of 232 percent in net profit across their core operations. According to Al Ameri, these figures serve as a testament to their proactive approach in seizing opportunities within their diversified portfolio and the broader investment landscape. Al Ameri emphasized that Alpha Dhabi is strategically poised to continue making investments that position them for future growth, thereby contributing significantly to the dynamic economy.
Factors driving positive performance
The positive performance in the quarter can be attributed to various factors, with organic expansion within its portfolio and strategic acquisitions being the most prominent. These factors underscore Alpha Dhabi’s commitment to enhancing shareholder value. The Group’s diversified and adaptable portfolio has been a significant catalyst for its sustained growth.
Total gains in the quarter amounted to AED2.0 billion, which was lower than the corresponding period in 2023 due to the de-recognition of Pure Health by the group. The decrease in gains, coupled with the implementation of Corporation Tax in the UAE in 2024, contributed to an overall decline in Group Net Profit.
Strong financial position, growth ambitions
Alpha Dhabi maintains a robust financial position, boasting total assets of AED147.4 billion and equity of AED79.0 billion. The company is strategically positioned to further advance its growth ambitions, including exploring additional acquisition opportunities and geographical diversification.
The increasing diversity and depth of Alpha Dhabi’s portfolio have played a significant role in driving revenue growth and contributing to the rise in net profit from operations. The Industrial, Real Estate, and Construction sectors have made substantial contributions, representing 37 percent, 33 percent, and 18 percent of the total revenue, respectively.
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