Multiply Group, an Abu Dhabi-based technology-focused investment holding company, posted a 267 per cent rise in its annual net profit for the second quarter of this year, driven by strong performance of its subsidiaries.
The net profit attributable to shareholders for the three-month period stood at Dh362 million ($98.5 million), Multiply said on Tuesday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Meanwhile, profit from Multiply Group’s operating entities rose by 33.6 per cent annually in the April-June period to Dh215 million, excluding both realised and unrealised fair value gains, the company said.
Fair value earnings reflect gains and losses from companies that Multiply does not control.
Revenue for the second quarter rose by about 4 per cent to Dh276 billion, while assets rose more than 2 per cent to Dh1.43 billion.
The group's current public market portfolio is valued at Dh33.4 billion, versus an invested amount of Dh12.3 billion, it said.
The results highlight “the growth across our diversified portfolio of assets, driven by our pursuit of creating long-term value through strategic investments”, said Multiply Group chief executive Samia Bouazza.
“With access to Dh2 billion ($544 million) in cash and over Dh4 billion ($1 billion) in financing capacity, we continue to seek lucrative opportunities here in the UAE and globally.”
The group remains “well on track” to double its net profit this year from companies where it has a controlling stake, Ms Bouazza told The National on Tuesday.
“We are well on track to grow and hopefully double profitability from companies that we control or have visibility on income – that could be operating profits or dividends that we know is coming at a certain time.
“So, these are predictable numbers that we want to grow. What we can't control obviously is any changes in fair value.”
Multiply has not seen an impact of inflation or the economic slowdown in its business, mainly because “we work hard to mitigate any impact on our business profitability”, Ms Bouazza said.
Multiply, a subsidiary of Abu Dhabi's International Holding Company, was listed on the ADX in December 2021 through a private placement deal that raised Dh3.1 billion and was 16 times oversubscribed.
The company has been investing across its two units, Multiply and Multiply+.
Multiply operates and invests in four business lines – mobility, energy and utilities, media and communications, and beauty and wellness.
Meanwhile, Multiply+, the group's non sector-focused investment arm, has set a target of double-digit returns across several asset classes.
The company is also planning to launch a fashion-focused business division this year or next.
“There are a couple of steps that are required to launch a vertical successfully,” Ms Bouazza said.
“The first is having an anchor company, so ideally a platform rich in data [which is] profitable and with plans to grow. Around that we start making smaller bolt-on acquisitions.
“Another step that is required is identifying an expert to lead that effort. And obviously we must do the right studies to see what sub-verticals within fashion to focus on.”
All of this “is in the process”, she said.
“We have not identified an anchor company [although] we have studied many. Again, if they don't fit the criteria, we're not in a hurry to launch a vertical. We want to do it right. But it is still an area that we are looking at.”
The group's investments include stakes in businesses such as Emirates Driving Company, Viola Communications, the Abu Dhabi National Energy Company, better known as Taqa, the Dubai Electricity and Water Authority, Borouge and Getty Images.
In the second quarter, the group expanded its media portfolio by acquiring a 55 per cent stake in Media247 and invested $100 million in Breakwater Energy, a subsidiary of EIG, an institutional investor in the global energy and infrastructure sectors.
Among its subsidiaries, Omorfia Group, Multiply's wellness and beauty anchor company, reported net profit growth of 60 per cent annually in the second quarter, while Emirates Driving Company registered a net profit increase of 29 per cent during the period, the group said.
Pal Cooling Holding, a district cooling company, posted a 19 per cent rise in net profit during the period.
The company is also looking around the world for acquisitions, with a focus on regions such as Turkey and India, Ms Bouazza said.
For now, it is well-funded and not seeking any liquidity.
Multiply is also considering initial public offerings for some of its companies.
“We are well on our way to create the right fundamentals in terms of scale, size, profitability, governance in two of our verticals,” Ms Bouazza said.
“Once we reach the objective that we have in mind and the macro economic conditions are solid and positive, we will be launching an IPO of our own.
“This can be any time we reach [that criteria] so time is not the factor here, it's the conditions that need to be met.”
