Abu Dhabi: Multiply Group (ADX: MULTIPLY), a leading Abu Dhabi-based investment holding firm, today announced its Q1 2025 results with an EBITDA excluding fair value changes of AED572 million, marking a 19% increase compared to AED 482 million in the same period last year.
According to Emirates News Agency, the robust profit growth was driven by strong performance across various business verticals. The reported profit of AED 210 million includes over AED133 million of paper losses from unrealised changes in fair value due to periodic market fluctuations, which had no impact on the operational performance of the business. This was offset by AED 328 million in investment income.
The Group focuses on driving synergies and integration among businesses under each vertical, emphasizing digital transformation and operational efficiencies. This strategic approach is evident in the sustained revenue growth, with Group revenue increasing by 50% year-on-year to AED 585 million. This growth was driven by expansion across all verticals and the consolidation of The Grooming Company Holding, Excellence Driving, and a full quarter consolidating BackLite Media. The blended gross profit margin stood at a healthy 49%, indicating continued profitability across core verticals.
Net profit from operating businesses rose by 26%, with the Beauty and Wellness vertical achieving a net profit increase of over 120%, and the Media and Communications vertical seeing a 38% rise due to both organic and inorganic growth. However, the share of loss from Kalyon JV increased to AED 25 million in Q1 2025 from AED 14 million in Q1 2024, attributed to hyperinflationary accounting and the amortization of a deferred tax asset.
The balance sheet remains strong, with a cash balance of AED 1.73 billion. The Group continues to demonstrate the value of its long-term strategy by building a diversified portfolio of strong assets across its core verticals while investing in lucrative assets under Multiply+ for double-digit returns.
Under Multiply+, the public market portfolio closed the quarter with a valuation of AED 32 billion, compared to an initial investment of AED 15 billion. Despite market fluctuations affecting the fair value of some assets, the portfolio's performance remains robust, as does its underlying long-term potential from targeted investments.
Multiply Group has appointed an artificial intelligence-powered board observer, MAI, to embed innovation into corporate governance and decision-making. Developed in collaboration with Aleria Technologies, MAI will provide the board with real-time data analysis and forward-thinking insights to enhance strategic decision-making. This appointment underscores Multiply Group's commitment to using cutting-edge technologies to drive transparency, ethical leadership, and strategic growth.