Abu Dhabi's Multiply Group swings to first-quarter profit on strong investments

Company earned a net profit of $79.09m in the first three months of 2022

Samia Bouazza, chief executive of Abu Dhabi-based Multiply Group. Photo: Multiply Group

Abu Dhabi-based Multiply Group swung to profit in the first quarter of the year, driven by strong investments, as the UAE’s economy continues to recover from the coronavirus-induced slowdown.

Net profit, attributable to the owners of the company, reached Dh290.5 million ($79.09m) in the three months to the end of March, compared with a loss of Dh889,000 in the same period last year, the company said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

The technology-focused investment holding company's revenue during the quarter reached Dh241.2m, nearly Dh237.6m more than the same period in 2021.

A strong start to 2022 was driven by the “performance of our investment portfolio as well as our subsidiaries”, said Samia Bouazza, chief executive of Multiply Group.

“Inorganically, we continued our aggressive strategy to grasp attractive investment opportunities, taking a stake in Savage X Fenty as we continue seeking out firms who share our bold mindset and desire to unlock their full potential through digital transformation."

Last month, Multiply Group, which was listed on the ADX in December, was included in the bourse's new benchmark index, the FTSE ADX 15 Index.

The company, a subsidiary of International Holding Company, acquired stakes in Emirates Driving Company, Omorfia Group, Viola Communications, Firefly and Yieldmo in 2021.

It has continued its deal-making this year, with investments in Getty Images and celebrity Rihanna's intimate apparel brand Savage X Fenty.

This month, Multiply Group invested Dh367m in the Dubai Electricity and Water Authority's initial public offering as a cornerstone investor.

“Our latest investment in Dewa also reflects our confidence in the UAE economy and takes us further in our commitment to growing the value of our shareholder's capital,” Ms Bouazza said.

The company aims to expand its portfolio this year, capitalising on opportunities to buy profitable stakes.

“We will increase operational margins and align with subsidiary leadership on future-proofing their companies, all the while, emphasising the professional growth and well-being of our employees,” Ms Bouazza said.

Multiply Group earned a gross margin of Dh120.6m in the first quarter. Its cash and bank balances reached Dh3.08 billion, it said.

The company's strategy is to pursue profitable growth through a diversified portfolio, striking a balance between steady companies that generate recurring income and high-growth businesses.