Abu Dhabi's Multiply Group lands Dh266m as Q1-2023 net profit
Multiply did record Dh265m in fair value loss - but company is looking at things long-term
Dubai: Abu Dhabi investment firm Multiply Group’s recorded a net profit (excluding fair value gains/loss) of Dh266 million for the first three months which is 241 per cent higher from a year ago. In all, the group – which has interests in energy, mobility services, and media – generated Dh303 million in dividend from its public market portfolio.
If fair value numbers are included, there would be the fair value loss of Dh265 million during the quarter, and that would mean a group-wide net profit of Dh0.51 million in net profit.
The Multiply Group in a statement said: “It is imperative to note these fair value changes are largely unrealised, and the short-term movements do not impact the Group’s long-term view of these assets.
“From a total invested amount of Dh12.6 billion, the Group’s current public market portfolio stands at over Dh33 billion, a 166 per cent appreciation. Multiply Group’s investment portfolio is a key part of its asset base, and it has been an important growth driver.”
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The company – one of the big performers on ADX – will continue to target ‘value accretive’ investment chances. The current cash flow position stands at just over Dh1.2 billion, with ‘very healthy debt-to-equity and debt-to-assets parameters’.
It has access to over Dh6 billion in financing capacity.
“In parallel, across operating businesses several measures including tech infusion, bolt-on acquisitions are being lined-up to enhance organic growth,” said the statement. “Multiply Group is well-positioned and focused on generating a more robust and sustainable EPS growth.”
According to Samia Bouazza, Group CEO and MAnaging Director, "Our results this quarter are the sum of robust earnings from our operating businesses as well as cash dividends from our investments - and of the loss we have recorded on our public portfolio.
"We have had significant gains from our public portfolio since 2022. While that has substantially boosted our balance-sheet, the gains are largely unrealised, and so is the Dh265 million fair value loss this quarter.
"We continue to build a leadership position across our portfolio companies, with aggressive pursuit of organic growth. Notably, we have begun the year growing our Media and Communications vertical with the aim of consolidating country-wide assets in the out-of-home media space."