ABU DHABI:– Multiply Group (ADX: MULTIPLY), a leading Abu Dhabi-based investment holding firm, today reports its Q1 2024 results with a net profit excluding fair value changes of AED 393 million, representing 48% growth compared to the same period last year (AED 266 million Q1 2023). Robust underlying profit growth was driven by strong performance across business verticals. Reported loss of AED 4.2 billion includes over AED 4.6 billion paper losses from unrealized changes in fair value driven by periodic market fluctuations with no implications on the operational performance of the business. In year 2022, we reported paper gains of AED 18.5bn which gives us fair value gains of AED 13bn since then.

Group revenue increased by 45% YoY to AED 391 million, driven by growth across all verticals and the consolidation of Media 247 and BackLite Media under the Media vertical. Blended gross profit margin remained healthy at 51.1%, reflecting continued profitability across core verticals. Investment and other income was +29% YoY at AED 361 million.

Group net profit growth excluding unrealised fair value changes was driven by strong vertical performance (48% YoY blended growth) – excluding the Kalyon JV contribution, which was negative AED 13 million on higher deferred tax expense impacted by hyperinflation accounting in Turkey. In Q1 2024, we reported income tax benefit of AED 46 million on the recognition of fair value losses during the period.

Balance sheet remains robust with cash balance of AED 1.62 billion. The Group again demonstrated the value of its long-term strategy by building a diversified portfolio of strong assets across its four core verticals (Mobility, Energy and Utilities, Media and Communications, and Beauty and Wellness) whilst investing in lucrative assets under Multiply+ for double-digit returns.

2024 at Multiply Group is The Year of Efficiency. The Group has identified across its portfolio areas of EBITDA uplift worth up to AED 45 million run-rate. 50% of which will come from revenue synergies (e.g. geographic expansion, cross-selling and value-accretive bolt-ons), up to 40% through cost optimization (e.g. back-office integration and streamlining procurement) and up to 10% from Digital Transformation and Artificial Intelligence initiatives that look to enhance customer acquisition and automate processes.

Under Multiply+, the public market portfolio closed the quarter with a valuation of AED 28 billion, compared to an initial investment of AED 15 billion. Despite market fluctuations affecting the fair value of some assets, notably from the Q1 decline in the share price of TAQA, performance across the portfolio remains strong as does the underlying long-term potential from targeted investments. In its core operational portfolio, the Group focusses on driving synergies and integration among the businesses under each vertical, with emphasis on accelerating digital transformation and operational efficiencies. This is reflected in continued and strong revenue growth.

Read the full report here.

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ABOUT MULTIPLY GROUP 

With its trademark growth mindset, Multiply Group PJSC is an Abu Dhabi-based holding company that invests in transformative cash-generating businesses it understands.

Multiply Group will continue to deploy capital across its two distinct arms, both of which follow a disciplined approach to investing and ensure consistent, sustainable value creation for our shareholders in the short-, medium- and long-term:

Multiply, the investments and operations in long-term strategic verticals, currently investing and operating in Mobility, Energy & Utilities, Media & Communications and Wellness & Beauty. Anchor investments provide long-term recurring income, through which bolt-on acquisitions are made. 

Multiply+, a flexible, sector-agnostic, and minority investment arm.
For more information, visit www.multiply.ae