Abu Dhabi-based Multiply Group reported today its Q1 2025 results, achieving an annual revenue increase of 50 percent to AED585 million ($159.27 million). The group also revealed that it achieved an EBITDA excluding fair value changes of AED572 million, representing a 19 percent growth compared to the same period last year.
The group’s reported profit of AED210 million includes over AED133 million of paper losses from unrealized changes in fair value driven by periodic market fluctuations with no implications on the operational performance of the business, offset by AED328 million of investment income.
Group’s net profit rises 26 percent
The surge in Multiply Group’s revenues was driven by growth across all verticals and the consolidation of The Grooming Company Holding, Excellence Driving and a full quarter consolidating BackLite Media. Blended gross profit margin remained healthy at 49 percent, reflecting continued profitability across core verticals.
Meanwhile, net profit from operating businesses increased by 26 percent on the back of the Beauty & Wellness vertical growing net profit by more than 120 percent and the Media & Communications vertical increasing net profit by 38 percent as a result of organic and inorganic growth. However, share of loss from Kalyon JV increased to AED25 million in Q1 2025 as a result of hyperinflationary accounting and amortization of deferred tax assets.
The group’s balance sheet remains robust with a cash balance of AED1.73 billion, demonstrating the value of its long-term strategy by building a diversified portfolio of strong assets across its core verticals whilst investing in lucrative assets under Multiply+ for double-digit returns.
Under Multiply+, the public market portfolio closed the quarter with a valuation of AED32 billion, compared to an initial investment of AED15 billion. Despite market fluctuations affecting the fair value of some assets, performance across the portfolio remains strong, as does the underlying long-term potential from targeted investments.
Strategic investments and partnerships driving growth
In Q1 2025, Multiply Group signed an agreement to acquire a controlling stake of 67.91 percent in Castellano Investments, which owns Spanish fashion retailer Tendam, in the UAE’s company’s first major foray into Europe and the retail and apparel sector. Multiply also signed the deal with CVC Funds and PAI Partners, to become the majority shareholder in Castellano Investments. Multiply Group will lead the next phase of growth for Tendam, geared towards further international expansion and development of the group’s omnichannel ecosystem.
In addition, the media vertical of Multiply Group signed a Memorandum of Understanding with Al Arabia Outdoor Advertising, setting the stage for the creation of a joint entity dedicated to investing in the global out-of-home (OOH) advertising sector, strengthening global presence and supporting expansion plans into international markets.
Multiply Group also signed an MoU with Saudi Media Company in a significant step towards fostering innovation in the media and advertising industry. The MoU will explore the potential collaboration and mutual investment opportunities in the development of advanced advertising technology platforms.
AI-powered MAI joins Multiply’s boardroom
Last quarter, Multiply Group appointed an AI-powered board observer to embed innovation into corporate governance and decision-making. The AI observer, MAI, will provide the board with real-time data analysis and forward-thinking insights to enhance strategic decision making, ensuring Multiply Group remains ahead of market trends and industry innovations.
The appointment of MAI as a non-voting AI board observer strengthens Multiply Group’s commitment to using cutting-edge technologies to drive transparency, ethical leadership and strategic growth. MAI was developed in collaboration with Aleria Technologies, a leading provider of C-level Executive AI.
