Multiply Group Achieves AED 210 Million Net Profit In Q1 2025 Driven By Strong Business Performance

Multiply Group, an investment holding company based in Abu Dhabi, has announced its financial results for the first quarter of 2025. The firm reported an EBITDA of AED 572 million, excluding fair value changes. This marks a 19% increase from AED 482 million in the same period last year. The growth was attributed to strong performances across various business sectors.

The company's revenue saw a significant rise of 50% year-on-year, reaching AED 585 million. This increase was driven by growth across all business verticals and the consolidation of several companies, including The Grooming Company Holding, Excellence Driving, and BackLite Media. The gross profit margin remained stable at 49%, indicating sustained profitability.

Despite market fluctuations impacting some asset valuations, Multiply Group's public market portfolio ended the quarter valued at AED 32 billion. This is a substantial increase from the initial investment of AED 15 billion. The portfolio's performance remains robust with promising long-term potential from strategic investments.

The Group's net profit from operating businesses rose by 26%. Notably, the Beauty & Wellness sector achieved over 120% growth in net profit, while the Media & Communications sector saw a 38% increase. These gains were due to both organic expansion and acquisitions.

In an innovative move, Multiply Group appointed an AI-powered board observer named MAI. Developed with Aleria Technologies, MAI aims to enhance corporate governance by providing real-time data analysis and insights for strategic decision-making. This initiative underscores the Group's commitment to leveraging advanced technologies for growth and transparency.

The Group continues to focus on integrating businesses within its core operational portfolio. Emphasis is placed on digital transformation and improving operational efficiencies to drive synergies among its verticals. This strategy has been reflected in consistent revenue growth.

Financial Stability and Future Prospects

The balance sheet remains strong with a cash reserve of AED 1.73 billion. The Group's long-term strategy involves building a diversified portfolio across core verticals while investing in high-return assets under Multiply+. This approach aims for double-digit returns despite periodic market fluctuations affecting asset values.

The share of loss from the Kalyon joint venture increased to AED 25 million in Q1 2025 due to hyperinflationary accounting and deferred tax asset amortization. However, this did not significantly impact overall profitability or operational performance.

Multiply Group's strategic initiatives and robust financial health position it well for future growth. By focusing on innovation and diversification, the company aims to maintain its competitive edge in the market while delivering value to stakeholders.

With inputs from WAM