Abu Dhabi’s Multiply Group swings to profit on strong investments

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 stood at 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 filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue grew to Dh241.2m, about Dh237.6m more than was reported in the same quarter last year, the company said on Monday.

Chief executive Samia Bouazza said the company’s strong start this year was driven by the “performance of our investment portfolio as well as our subsidiaries”.

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

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

The technology-focused investment holding company, a subsidiary of International Holding Company, acquired stakes in Emirates Driving Company, Omorfia Group, Viola Communications, Firefly and Yieldmo last year.

It has continued to strike deals this year through investments in Getty Images and Rihanna’s intimate apparel brand Savage X Fenty. This month, Multiply Group invested Dh367m in the Dubai Electricity and Water Authority’s listing.

“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.

“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 stood at 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.

Our investment in Dewa takes us further in our commitment to growing the value of our shareholder’s capital SAMIA BOUAZZA

Chief executive of Multiply Group