UAE's Multiply Group Reports AED920 Million Net Profit For First 9 Months

Multiply Group, the United Arab Emirates' company that invests in and operates businesses globally, announced its Q3-24 results, reporting a net profit of AED 207 million excluding fair value changes. This brings the total net profit for the first nine months to AED 920 million.

Multiply Group's strong performance this year, which is 13% more compared to last year, reflects the successful integration of recent acquisitions and aligns with its strategy of developing vertical expertise within its portfolio.

The reported net profit for the quarter was AED 744 million, including AED 537 million in unrealized fair value gains from its public investment portfolio, WAM reported.

In Q3 2024, the group's revenue rose by 47% year-on-year to AED 518 million, driven by organic growth across all sectors, which increased by 9% year-on-year, and the consolidation of BackLite Media, the Grooming Company Holding and Excellence Premier Investment.

The blended gross profit margin remained strong at 44%, reflecting changes in the revenue mix within the Media sector and the consolidation of Excellence in the Mobility sector. Furthermore, investment and other income, including dividend income, summed AED 221 million.

The balance sheet remains strong, with a cash balance of AED 1.88 billion and additional liquidity of up to AED 4 billion available for future investments.

This financial flexibility shows a careful approach to capital allocation, as seen by the nearly AED one billion spent in 2024 on three strategic acquisitions that fit Multiply's vertical growth strategy.

Multiply Group has declared 2024 as the Year of Efficiency. Its efficiency program, launched in Q2, has made massive progress over the quarter, achieving over AED 25 million in efficiency gains, which is more than 50% of the Group's AED 45 million target.

The Group introduced new online portals and services, reduced cash transactions, and collected insights into customer spending habits. The Group plans to use AI and advanced technologies in its businesses to create more value.

This includes increasing revenue productivity by using predictive maintenance for Emirates Driving Company's (EDC) vehicles to ensure they are used to their fullest potential and optimizing costs by automating proposal generation to save time in its media operations.

Despite market fluctuations affecting the fair value of some assets, the portfolio's overall performance remains strong, as does the long-term potential from targeted investments.