Abu Dhabi IHC’s Ghitha Holding doubles 2023 revenue but net profit falls 87%

Abu Dhabi IHC’s Ghitha Holding doubles 2023 revenue but net profit falls 87%

Ghitha Holding, a subsidiary of Abu Dhabi-based conglomerate International Holding Company (IHC), has posted an 87% decline in net profit for 2023, despite revenues doubling to AED4.6 billion ($1.2 billion).

The company, which specialises in trading food and non-food products, posted a net profit of AED43.18 million for the year ended December 31, 2023, compared to AED332.5 million a year earlier, according to a disclosure on the Abu Dhabi Securities Exchange (ADX).

In a separate statement, the company said it achieved a “milestone” revenue of AED4.6 billion for the year, up by 100% from the previous year. The revenue growth has been attributed to strategic acquisitions and business expansion across diverse categories and markets.

Despite a fall in net profit, Ghitha said it managed to achieve “robust” financial results for the last 12 months.

The company’s total assets rose by 32% to AED7.1 billion, while operating profit jumped by 64% to AED99 million.

Gross profit reached AED773 million, compared to AED383 million in 2022. Operating profit also climbed to AED254 million from AED155 million.

(Writing by Cleofe Maceda; editing by Brinda Darasha)

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