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Technology-focused holding company Multiply Group has reported a net profit of AED462 million ($126 million) in the first half (H1) of 2022, based on the performance of its investments and subsidiaries.
Listed on the Abu Dhabi Stock Exchange (ADX), the group’s first-half 2022 figures show revenue of AED507 million and a gross profit margin of AED250 million. Net profit was equivalent to 91% of revenue for the period, with investments and other income of AED 300 million contributing to profitability.
Group subsidiaries also performed strongly, covering five verticals: media and communications, utilities, venture capital, health and beauty, and the digital economy. All Group operating units achieved profitability and exceeded operating targets in the first half of the year.
Liquidity
The group continues to benefit from a strong liquidity position with cash and bank balances of AED 3.24 billion and negligible debt. This will enable Multiply Group to pursue attractive targets globally and ensure efficient allocation of capital, balancing a stable company that generates recurring income with a high-growth business.
Multiply Group expects its profitability to accelerate significantly over the remainder of 2022 based on the Group’s strong operating performance, current growth in its subsidiaries and strong potential investment pipeline.
Samia Bouazza, Chief Executive Officer and Managing Director, said: “Multiply Group has seen strong profitability in the first half of 2022 as our subsidiaries continue to deliver strong growth. Despite continued headwinds, we see our portfolio Remarkably resilient. We are very optimistic about the rest of the year and we expect our profitability to accelerate as we focus on two key growth areas. First, we will leverage our strong cash base in the face of weaker markets , identify further investment opportunities locally and globally and identify opportunistic deals. Second, we will continue to achieve synergies and cost savings across our business through our operational excellence and digital transformation initiatives.”
Affiliated Milestones
Marketing and communications company Viola Communications has been awarded a contract for Abu Dhabi Moments, a large-scale national community project worth AED 11 million, which includes a full range of marketing and communications activities. The first phase of the digital transformation of the Capital Bridge Outdoor Media Network is scheduled to be completed on August 1, 2022.
Meanwhile, Emirates Driving Company has completed more than two-thirds of its third major branch in Madinat Zayed. The company also successfully completed the audit of the new ISO 39001:2012 road traffic safety management system.
Pal Cooling Holding, part of the group’s utilities vertical, has successfully completed and commissioned a second district cooling plant for the Shams development with a total design capacity of 57,000 RT.
The Omorfia group of personal care and beauty companies continued to expand and modernize its network in the first half of 2022 and branch out into higher-value services such as physiotherapy.
invest
Multiply Group made significant investments in the first half of 2022. In January, it invested AED 92 million in Rihanna’s Savage X Fenty, a direct-to-consumer e-commerce fashion company. The investment is part of a funding round with other international investors including Neuberger Berman and LionTree.
In April, Multiply Group invested AED 367 million as a cornerstone investor in the IPO of Dubai Electricity and Water Authority (Dewa), one of the leading fully integrated utilities in the region.
This was followed by an investment of AED 183.75 million in the IPO of Borouge plc in May, again as a cornerstone investor. The investment reflects the strength and depth of the Abu Dhabi market and provides Multiply Group with the opportunity to partner with Adnoc Group, which plays a vital role in the sustainable development of Abu Dhabi and the UAE.
health plan
As part of its ESG commitment, the group launched its workplace wellness programme in May. Designed to promote work-life balance and support the physical and mental well-being of the group’s more than 3,000 employees, the programme is driven by its subsidiary HealthierU.
Included in major indices
By March 2022, Multiply Group has been included in the FADX 15 index, cementing its position as the main UAE listed company less than four months after its listing on the ADX. The group is also included in the FTSE GEIS Midcap Index, effective 20 June 2022. — arab trade news agency
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