Abu Dhabi's Multiply Group posts Dh400 million net profit in Q2-23

Stock - Multiply Group — Multiply Group is seeing more value accretive acquisition opportunities emerge globally across its operating verticals and investment arm. Image Credit: LinkedIn/@Multiply Group

Abu Dhabi: Abu Dhabi investment firm Multiply Group’s recorded a net profit of Dh400 million for Q2-2023, compared with Dh127.31 million in the corresponding period of last year.

“Multiply Group’s strong second-quarter results were driven by the excellent operational performance of its subsidiaries, which in turn generated robust recurring income for the Group,” the company said in a statement on Tuesday.

The profit from Multiply Group’s operating entities witnessed a surge of 33.6 per cent, compared to Q2-2022. This increase excludes both realised and unrealised capital gains.

In comparison to the half-year performance, profit excluding fair value movement, Multiply Group reported a substantial increase of 146.23 per cent from H1-2022 to H1-2023. The Group's current public market portfolio stands at a value of Dh33.4 billion, versus an invested amount of Dh12.3 billion.

“Multiply Group is seeing more value accretive acquisition opportunities emerge globally across its operating verticals and investment arm,” said the satatement. The Group maintains a strong cash flow position with Dh2 billion, healthy debt-to-equity and debt-to-assets ratios, and access to over Dh4 billion in financing capacity.

In the second-quarter of 2023, the Group experienced a 3.9 per cent increase in revenue, reaching a total of Dh276 million. The net profit from operating companies saw a significant surge of 33.6 per cent year-on-year, amounting to Dh120.8 million. Additionally, cash generated from operating activities reached Dh500 million.

“Our Q2 earnings report for 2023 highlights the growth across our diversified portfolio of assets, driven by our pursuit of creating long-term value through strategic investments,” said Samia Bouazza, Group CEO and Managing Director. “We report a profit of Dh215 million, excluding fair value changes, reflecting our focus on acquiring and growing assets that yield strong recurring income.”

Key investments

In April, Multiply Group presented a binding offer to acquire a 55 per cent stake in Dubai-based outdoor advertising company Media247. This strategic move came as part of the Group’s ambition to establish the largest integrated multi-brand media provider in the GCC by consolidating Out-of-Home and Digital Media businesses.

Earlier this month, Multiply Group invested Dh367 million in EIG Breakwater Energy, becoming part owner of a highly profitable and cash generative, diversified global upstream portfolio with an attractive dividend profile. This investment falls under the Group’s sector-agnostic and opportunistic investment arm, Multiply+.

“Looking ahead, we remain focused on building our verticals, growing our operating businesses, and further enhancing our income streams to power sustained growth,” said Bouazza. “With access to Dh2 billion in cash and over Dh4 billion in financing capacity, we continue to seek lucrative opportunities here in the UAE and globally.”