Alpha Dhabi Reports $1.25 Billion in Net Profit in Q1 of 2024

Displaying continued momentum in the execution of its strategy axross key verticals, Alpha Dhabi Holding, one of the MENA region’s most rapidly expanding investment holding companies, and listed on Abu Dhabi Securities Exchange (ADX), on Monday reported the Group’s net profit of $1.25 billion for Q1 of 2024.

With strong financial results across the Group, the first quarter of this year has been marked with a record revenue of $3.87 billion (11% increase y-o-y). The period also witnessed a stellar jump of 232% in net profit from operations, compared with Q1 in 2023. The Group also reported a 29% y-o-y increase in its cash balance to $5.86 billion.

Alpha Dhabi Holding’s Managing Director and CEO Hamad Al Ameri said that the company started 2024 in the same way as they finished 2023, by delivering strong performance and building on our relentless growth momentum.

“Our record revenue and net profit across our core operations reflect the pace at which we are moving to capture opportunities across our diversified portfolio and throughout the investment landscape. Fundamentally, we are primed to continue making investments that position us for future growth and that deliver meaningful impact across our vibrant economy,” he noted.

The strong performance in the quarter is attributed to a combination of factors, notably organic expansion across its portfolio and strategic acquisitions, underscoring the Group’s commitment to enhancing shareholder value. Alpha Dhabi’s diversified and agile portfolio has been a significant driver behind continued growth.

Total gains in the quarter at $544 million, were lower than corresponding period in 2023 when the group de-recognised Pure Health. The reduction in gains, together with the adoption of Corporation Tax in the UAE in 2024, contributed to a decrease in Group’s net profit, overall.

The Group’s financial position remains strong, boasting total assets of $40.13 billion as well as having equity of $21.51 billion. Alpha Dhabi is strategically poised to forge further ahead its growth ambitions which will include further possibilities for acquisitions and geographical diversification.

The diversity and depth of Alpha Dhabi’s increasing portfolio has been a significant driver of its revenue growth and contribution to the increase in net profit from operations. The company’s portfolios in industrial, real estate and construction contributed significantly, representing 37%, 33%, 18%, of the total revenue, respectively.

JV with ADNOC Drilling

The Group’s joint venture (JV) with ADNOC Drilling Company, named ‘Enersol’, announced its first strategic investment with the contribution of Alpha Dhabi’s 25% holding in Gordon Technologies to the JV.

This venture will accelerate investment in technology enabled energy solutions and well delivery optimisation in the development of unconventional resources. The JV is committed to investing $1.5 billion and is actively exploring investment opportunities.

Partnership with ADQ

The group’s strategic partnership with ADQ through a divestment of a 49% stake in its construction subsidiary, will deepen the Group’s commitment to national development, ability to tackle complex large-scale projects and spearhead the development of landmark and coveted real estate developments in the UAE.

Acquisitions and Expansion

Additionally, the Group announced a strategic transaction that will unite St Regis Saadiyat, Cheval Blanc Maldives and the soon to open Cheval Blanc Seychelles with National Corporation for Tourism and Hotels (NCT&H).

In addition, its luxury lifestyle subsidiary ADMO Lifestyle Holding announced the acquisition of Ce La Vi and a JV with Addmind Holding, called Alphamind, demonstrating Alpha Dhabi’s commitment to be a leading player in the luxury and lifestyle vertical.

The group also plans to expand its luxury portfolio with new venues for Nammos due to open in Cannes and London later this year.

“As we chart the path forward into 2024, our aim is to build on this energy by unlocking exciting opportunities here in the UAE as well as expanding our global footprint. To do this, we will be both active and agile by exploring possibilities, including the adoption of Artificial Intelligence solutions, that expand and add depth to our portfolio, ultimately taking the Alpha Dhabi growth story boldly forward to newer, greater heights,” Al Ameri added.