UAE-based Multiply Group has reported a drop in profitability in 2023. Over the course of last year, the company’s profit attributable to owners of the company fell to Dh337.8 million from the Dh18.4 billion reported in 2022, according to a filing in the Abu Dhabi Securities Exchange.
The company, a subsidiary of Abu Dhabi’s International Holding Company, has explained the fall as brought about by “fair value” losses, as well as higher expenses and finance costs.
The company’s annual Group revenue increased by 15% year-on-year to Dh1.3 billion, driven by acquisitions. Excluding the fair value changes in the investment portfolio, the company’s net profit more than doubled in 2023, reaching Dh1.1 billion.
In 2023, Multiply’s finance costs more than doubled, reaching Dh415.6 million, while the company’s expenses climbed more than 27% annually to Dh302.7 million. Investments and other income sources fell 97% to Dh407.3 million.
The company stressed that its balance sheet remains robust, with a cash balance of Dh1.56 billion. In 2023, Multiply’s total assets in 2023 climbed to Dh42.2 billion from Dh41.2 billion the previous year.
“Throughout 2023, we were focused on delivering strong growth across our existing subsidiaries, as well as, new acquisitions within the diverse industries in which we operate,” said Andre Sayegh, Chairman.
“Our performance means that we are well-positioned and laser-focused on the path ahead, where we seek to continue driving strategic investments that will create lasting and meaningful impact across the UAE economy.”
Last year, Multiply made a series of acquisitions that significantly increased its revenue.
The company bought a 55% stake in outdoor advertising company Media 247 for Dh225 million and acquired a stake in LVL Technology Holding for an undisclosed amount, as well as a minority stake in Breakwater Energy for Dh367 million.
Multiply is “well-positioned and laser-focused on the path ahead, where we seek to continue driving strategic investments that will create lasting and meaningful impact across the UAE economy”, the company’s chairman, Andre Sayegh, said.
The company did not disclose the financials for the fourth quarter of 2023.