ABU DHABI – Abu Dhabi-based investment holding company Multiply Group posted a 2022 net profit of AED18.56 billion, driven by a strong performance of the group’s investments and growth in its operating portfolio.
Despite some global headwinds, most of its subsidiaries posted higher operating profit in 2022, underscoring the strength of these businesses and the resilience of their industry. For example, Emirates Driving Company (EDC) was up 51%; Viola Communications was up 203%, driven by post-COVID-19 campaign and out-of-home media spending and economic growth; and Omorfia Group was up 47%.
The Group has deployed over AED12 billion in 2022, making strategic investments in vibrant and healthy businesses in high-growth thematic sectors such as energy, including Abu Dhabi National Energy Company (TAQA), Dubai Electricity and Water Authority (DEWA) and international Energy Corporation Holdings (IEH). At the same time, these businesses provide predictable, recurring revenue that will continue to increase shareholder value.
Additionally, Multiply Group’s inclusion in several indices, including the MSCI Emerging Markets Index, boosts its position on the global benchmark investment map and is expected to attract significant investment inflows. The Group has also been attracting and recruiting talents with capital market and investment banking expertise. It was recently recognized as a “Best Place to Work” by the global authority on corporate culture.
Looking ahead, with liquid assets of AED 34.97 billion and cash and bank balances of AED 1.03 billion, moderate debt, a global network of deal origination partners and an in-house team of vertical experts, Multiply Group will continue to capitalize on market trends and Maintains a strong position, continuing its strategy of investing in transformative cash-generating businesses that are exploring new revenue models in transforming industries.
In January, the group invested AED92 million in Savage X Fenty, Rihanna’s direct-to-consumer e-commerce fashion business. The investment is part of a financing round with other international investors including Neuberger Berman and LionTree.
In April, it invested AED 367 million as a cornerstone investor in the initial public offering of Dubai Electricity and Water Authority (DEWA), one of the region’s leading integrated utilities companies. This was followed in May by investing AED 183.75 million as a cornerstone investor in Borouge plc’s IPO.
In September, the group acquired a 7.3% stake in Abu Dhabi’s national energy company PJSC (TAQA), one of the largest listed integrated utilities in the Europe, Middle East and Africa (EMEA) region, for AED 10 billion . During the third quarter, the Multiply Group also acquired an 80% stake in International Energy Holding (IEH). IEH recently acquired a 50% stake in Kalyon Enerji Yatrimlari A.Ş., Turkey’s market-leading clean and renewable energy company. Kalyon Enerji’s assets include a PV (photovoltaic) power plant project with an installed capacity of 1.3 gigawatts (GW) in the Karapinar region of Konya.
Emirates Driving Company (EDC) saw a 51% increase in profitability last year, with its third main branch in Madinat Zayed completing 90%. The company is also partnering with Abu Dhabi Police, the Integrated Traffic Center and the European Association of Driving Schools to host the first summit of its kind in the region in 2022. The three-day summit focuses on accelerating the development of sophisticated and sustainable training techniques and driving the shift to transportation education based on sustainable transportation, technology and safety.
Pal Cooling Holding, one of the leaders in the district cooling industry in the UAE, has successfully completed and commissioned Shams Development’s second district cooling plant with a total design capacity of 57,000 tons of refrigeration (RT). It also expanded the installed capacity of its ADNEC plant to 20,000 RT, bringing the total installed capacity of the company’s six district cooling plants to 150,500 RT.
The Omorfia Group of personal care and beauty companies continues to expand and modernize its network, opening five new locations in 2022, branching out into higher-value services such as physiotherapy. This includes expanding its Tips and Toes brand with new locations at Park Point, Dubai Hills Estate; Silicon Centre, Dubai; and Al Dannah Mall, Ruwais; and a new location at Jazz Lounge Spa, Mirdif Avenue Mall, Dubai.
Viola Communications, a provider of fully integrated marketing and communications solutions, completed the first phase of the digital transformation of 16 bridges on Abu Dhabi’s high-visibility roads and major arterials in August. The firm also received the Middle East Public Relations Association (MEPRA) Award for Best Arts and Cultural Event for its communications and event management services for Sheikh Zayed Festival, Abu Dhabi’s leading international entertainment and cultural event.
Multiply Group has also launched a corporate wellness program run by its subsidiary HealthierU as part of its ESG commitment. The program promotes work-life balance and supports the physical and mental health of the Group’s more than 3,000 employees. Employees identified as high risk have participated in a comprehensive six-month program to guide their overall health and educate them on the benefits of adopting healthy habits.
inclusion in the new index
This year, Multiply Group was included in several new indices. This includes the MSCI Emerging Markets Index for November, boosting its position on the global benchmark investment map, which is expected to attract significant investment inflows. The group is also ranked 10th globally and 2nd regionally in the Bloomberg World Index with 2,803 members.
Multiply Group was also included in the FADX 15 Index in March and the FTSE GEIS MidCap Index in June.
During the third quarter, the group was included in the S&P UAE BMI Liquid 20/35 Capped Index and the S&P UAE Shariah Liquid 35/20 Capped Index. These indices measure the performance of the S&P UAE BMI and the UAE’s most liquid and Shariah-compliant stocks, respectively. The group’s inclusion in these indices provided by S&P Dow Jones Indices has also resulted in its inclusion in the Chimera S&P UAE UCITS ETF and the Chimera S&P UAE SHARIAH ETF.