Ittihad International Investment showcases resilience and strategic foresight in 2023

Ittihad International Investment, a key player in the UAE's economic landscape, has recently released its financial results for 2023, showcasing a robust performance amidst challenging market conditions. Let's delve into the details to understand how the company fared and its strategic positioning.

Adjusted EBITDA, a crucial financial metric, encompasses various components such as net profit, finance costs, tax, depreciation, and changes in the fair value of derivative financial instruments. This metric provides insights into the company's operational efficiency and profitability. Adjusted net leverage, another important indicator, is calculated by deducting cash balances and inventories from gross debt to adjusted EBITDA, offering a perspective on the company's financial health.

In 2023, Ittihad reported revenues of AED 10.4 billion and an adjusted EBITDA of AED 509.6 million, maintaining consistency with the previous year. Despite facing challenges like supply chain disruptions, interest rate hikes, and geopolitical conflicts, the company demonstrated resilience across its diversified investment portfolio.

Ittihad's contribution of over 4% to the UAE's non-oil manufacturing sector exports aligns with the country's strategic goals outlined in the 'Operation 300bn' initiative. The company's focus on driving organic growth and continued investment plans underscores its commitment to sustainable expansion.

The Consumer Goods Manufacturing (CGM) segment, encompassing products like paper, tissue, and chemicals, weathered economic downturns admirably due to the essential nature of these goods. While certain product lines experienced revenue and EBITDA decreases, Ittihad's strategic diversification helped mitigate adverse impacts, highlighting the company's prudent risk management strategies.

On the other hand, the Infrastructure and Building Materials Manufacturing (IBMM) division faced revenue declines in sectors like copper rods and steel bars due to market corrections. However, promising trends in the copper sector, driven by global energy transition initiatives, offer growth opportunities for Ittihad in the future.

Ittihad International Investment's financial performance in 2023 reflects its resilience and strategic foresight in navigating complex market dynamics. With a steadfast commitment to driving growth and contributing to the UAE's economic diversification goals, Ittihad stands poised for continued success in the years ahead.