Multiply Group’s 2021 profit soars on higher revenue

Company will focus on acquiring stakes in profitable, fast-growing, scalable businesses operating in the digital economy, CEO says

Multiply Group's 2021 net profit surged on the back of steady revenue streams from all its businesses. Reuters

Multiply Group, an Abu Dhabi technology-focused investment holding company, reported a huge jump in its 2021 net profit on the back of higher revenue.

Net profit attributable to owners of the company for the full year climbed to about Dh185 million ($50m), from nearly Dh3.8m a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue during the period surged to Dh372m, compared to Dh15.7m in 2020.

"Our acquisitions since mid-2021 have built a diversified group with substantial earnings potential," Samia Bouazza, chief executive of Multiply Group, said.

The company's UAE-based assets, including PAL Cooling, Emirates Driving Company, Viola Communications and Omorfia Group, which comprises Tips&Toes and Bedashing Beauty Lounges, are producing steady income streams, Ms Bouazza said.

"With over Dh3 billion in cash to invest and almost no debt obligations, we will focus on acquiring stakes in profitable, fast-growing, scalable businesses operating in the digital economy," she said.

"We will pursue transactions at a brisk pace, while deploying capital gradually throughout the year to capitalise on a 'buyer's market' for deal-making amidst softening valuations. Our strategy is to keep a balance favoring steady companies that generate substantial cash flow, with recurring income; and high-growth businesses delivering optimal returns for our shareholders."

Multiply Group, a subsidiary of ADX-listed International Holding Company, raised Dh3.1bn through its listing on ADX in December to expand its global portfolio.

It has been on an expansion spree and in 2021 acquired stakes in Emirates Driving Company, Omorfia Group, Viola Communications, Firefly and Yieldmo.

It also invested Dh275m in global content marketplace Getty Images in December and Dh92m in musician and businesswoman Rihanna’s intimate apparel venture, Savage X Fenty, earlier this year.

The company is expecting to see "significant growth in the coming years”, Andre Sayegh, chairman of Multiply Group said. “The group will deepen and synergise the operations of its existing entities as well as invest in technologically advanced companies that have a solid track record.”

The total assets of the group climbed to Dh11.6bn in 2021, compared to Dh98.3m in 2020, according to the statement.