Multiply Group’s full-year profit surges on higher revenue

The company reports $5 billion in net income for 2022

Multiply's chief executive Samia Bouazza said the past year was 'transformative'. Photo: Multiply Group

Multiply Group, an Abu Dhabi investment holding company focused on technology, said its 2022 full-year profit surged as revenue more than tripled.

Net profit attributable to the owners of the company for the 12-month period to the end of December surged to Dh18.4 billion ($5 billion), from about Dh185 million for the same period in the previous year, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the period rose more than three times to Dh1.12 billion, from about Dh372 million while investment and other income also soared last year.

Total assets more than tripled to Dh41.2 billion.

Chief executive Samia Bouazza said the past year was “transformative”.

“We made a series of significant strategic investments that accelerated the growth of the company while, at the same time, our operating companies continued to deliver strong recurring earnings,” she said.

“Our diverse portfolio has reached a scale that positions us well to continue growing our verticals and move forward with our strategy of focusing on cash-generating businesses with agile strategies.”

Multiply, a subsidiary of Abu Dhabi's International Holding Company (IHC), was listed on the ADX in December 2021 through a private placement deal that raised Dh3.1 billion and was 16 times oversubscribed.

Its investments include stakes in businesses such as Emirates Driving Company, Viola Communications, Abu Dhabi National Energy Company, better known as Taqa, the Dubai Electricity and Water Authority, Borouge and Getty Images.

Last year, it invested Dh92 million in musician and businesswoman Rihanna’s intimate apparel venture Savage X Fenty. It also bought 80 per cent of shares in IHC subsidiary International Energy Holding to expand its portfolio.

Multiply was added to the S&P UAE BMI Liquid 20/35 Capped Index and S&P UAE Shariah Liquid 35/20 Capped Index, in the third quarter.

The indices measure the performance of the S&P UAE BMI and the most liquid and Sharia-compliant stocks in the UAE, respectively.

The company was also added to the Chimera S&P UAE UCITS ETF and Chimera S&P UAE Shariah ETF.

“Multiply Group is well-positioned for 2023 and beyond to build on the strong performance of 2022 for a number of reasons,” chairman Andre Sayegh said.

“Firstly, the UAE economy is on strong growth momentum and secondly, corporate profitability will remain solid due to increasing economic activity that is supported by positive government regulations and projects.”

The UAE economy has made a strong rebound from the coronavirus-induced slowdown over the past two years and the pace of economic momentum has continued to improve on the back of government initiatives, higher oil prices, a strong property sector performance and a travel and tourism rebound.

The economy is estimated to have grown by 7.6 per cent last year — the highest in 11 years — after expanding by 3.9 per cent in 2021, according to the UAE Central Bank.

Overall, the country’s economy is projected to grow 3.9 per cent in 2023, while non-oil sector expansion is estimated at 4.2 per cent, according to the Central Bank.

“Looking ahead, with a liquidity position of Dh34.97 billion in liquid assets and Dh1.03 billion in cash and bank balances, moderate debt, a global network of deal origination partners, and while building an in-house team of vertical experts, Multiply Group will continue to capitalise on market trends and remains in a strong position to carry on with its strategy of investing in transformative, cash-generating businesses that are exploring new revenue models in transitioning industries,” the company said.