Multiply Group, a leading Abu Dhabi-based investment holding firm, reported on Wednesday a 15 per cent surge in year-on-year revenue to Dh1.3 billion.
The group, a subsidiary of Abu Dhabi’s International Holding Company. said its net profit excluding fair value changes of Dh1.1 billion, 2.4 times that of last year, was led by strong operational performance, higher investment income, and increased share of profit from Kalyon JV. The reported net profit, including unrealized fair value changes on the market volatility backdrop, came in at Dh552 million.
Group revenue increase reflected the strength of the group’s vertical building strategy, “driven by organic growth across the four verticals and the consolidation of Media 247 under the Media vertical and each of Fisio and The Juice Spa and Salon under Beauty & Wellness vertical. Blended gross profit margin improved to 51.3 per cent, reflecting an improvement of 70 basis points YoY as a result of enhanced profitability across core verticals,” the group said in a statement.
“Group net profit growth (excluding unrealized fair value changes) which more than doubled YoY was driven by strong vertical performance (19 per cent YoY blended growth) and was reinforced by increased share of profit from Kalyon JV with the commencement of solar power project (capacity of 1,350 MW) in early 2023 coupled with a tripling of investment & other income on higher dividends received from the Group’s public portfolio.”
Andre Sayegh, chairman of Multiply Group, said throughout 2023, the group focused on delivering strong growth across our existing subsidiaries, as well as, new acquisitions within the diverse industries in which it operates. “Our performance means that we are well-positioned and laser-focused on the path ahead, where we seek to continue driving strategic investments that will create lasting and meaningful impact across the UAE economy. Being a diverse holding company, we are very well placed to improve our synergies across our operating entities, which will reflect in improved earnings in the years to come.”
Samia Bouazza, group chief executive officer and managing director, said, “In 2023, we worked diligently on building our verticals – creating value by adding new services, identifying portfolio-wide synergies, investing in bolt-on acquisitions, buying competitors, and enhancing margins. This is reflected in our full-year earnings which show excellent growth across our subsidiaries.”
He said 2023 was also marked with strategic investments, where the group completed the acquisition of a majority stake in Media 247, which closed the year with Dh79 million in profit.
“Under Multiply+ arm, we invested Dh367 million for a minority stake in EIG’s Breakwater Energy, which offers a strong dividend profile, as we continue to focus on our commitment to increase shareholder returns. Across the board, digital transformation coupled with AI tools in shared services has also resulted in cost savings and increased efficiency, as we continue to future-proof our businesses,” said Bouazza.
Multiply Group’s balance sheet remains robust with a cash balance of Dh1.56 billion. The group demonstrated its financial prowess by building a diversified portfolio of strong assets across its four core verticals (Mobility, Energy and Utilities, Media and Communications, and Beauty and Wellness) whilst investing in lucrative assets under Multiply+ for double-digit returns. As for the core operational portfolio, the group focusses on driving synergies and integration among the businesses under each vertical with an emphasis on accelerating digital transformation and operational efficiencies.
In 2023, in line with its vertical building strategy, Multiply completed the acquisition of a controlling stake in Media 247, a leading outdoor advertising firm in the UAE. Media 247, known for its extensive portfolio of over 45 exclusive outdoor premium hoardings, unipoles, and 3D structures across Dubai’s most prominent locations, solidifies Multiply Group’s position in the media vertical as we focus on value-add acquisitions.