Multiply Group net profit excluding fair value changes in 2023 reaches AED1.1 billion

ABU DHABI: Multiply Group today reported full-year 2023 results with a net profit excluding fair value changes of AED1.1 billion, 2.4x last year. Robust underlying profit growth was led by strong operational performance, higher investment income and increased share of profit from Kalyon JV. The reported net profit, including unrealised fair value changes on the market volatility backdrop, came in at AED552 million. Group revenue increased by 15% YoY to AED1.3 billion, reflecting the strength of the vertical building strategy, driven by organic growth across the four verticals (+5% YoY) and the consolidation of Media 247 under the Media vertical and each of Fisio and The Juice Spa and Salon under Beauty and Wellness vertical. Blended gross profit margin improved to 51.3%, reflecting an improvement of 70 basis points YoY as a result of enhanced profitability across core verticals. Group net profit growth (excluding unrealised fair value changes) which more than doubled YoY was driven by strong vertical pe rformance (19% YoY blended growth) and was reinforced by an increased share of profit from Kalyon JV with the commencement of solar power project (capacity of 1,350 MW) in early 2023 coupled with tripling of investment and other income on higher dividends received from the Group's public portfolio. The balance sheet remains robust, with a cash balance of AED1.56 billion. The Group demonstrated its financial prowess 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. Under Multiply+, the public market portfolio closed the year with a valuation of AED32.9 billion, compared to an initial investment of AED15.5 billion. As for the core operational portfolio, the Group focuses on driving synergies and integration among the businesses under each vertical with an emphasis on accelerating digital transformation and operati onal efficiencies. Andre Sayegh, Chairman of Multiply Group, said, "The financial results for 2023 round off another remarkable year of achievements for Multiply Group, with operating net profit and revenue of our subsidiaries growing by 15%. Throughout 2023, we were focused on delivering strong growth across our existing subsidiaries and new acquisitions within the diverse industries in which we operate. Samia Bouazza, Group Chief Executive Officer and Managing Director, stated, "In 2023, we worked diligently on building our verticals - creating value by adding new services, identifying portfolio-wide synergies, investing in bolt-on acquisitions, buying competitors and enhancing margins. This is reflected in our full-year earnings, which show excellent growth across our subsidiaries." Source: Emirates News Agency