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Abu Dhabi-listed Multiply Group, a subsidiary of International Holding Company (IHC), is expected to make more investments as it saw its net profit surge to AED 462.2 million ($125.8 million) during the first half of 2022, driven by higher revenues and "robust" growth in its subsidiaries.
Earnings for the first half of the year are a strong improvement from the previous year's net loss of AED 0.73 million, according to the company's financial results on the Abu Dhabi Securities Exchange (ADX).
Revenue for the period ended June 30, 2022 reached AED 507.3 million, a huge leap from a year ago's AED 8.4 million, while gross margin soared to AED 250.5 million from AED 4.5 million.
"Multiply Group saw strong profitability throughout the first half of 2022 as our subsidiaries continued to register robust growth," said Samia Bouazza, CEO and Managing Director of Multiply Group.
"Despite the ongoing headwinds, we see a remarkable resilience across our portfolio."
Bouazza said the outlook for the rest of the year is very positive, citing that they expect the company's profitability to accelerate.
The company said that with its strong liquidity position, it can "pursue attractive targets" globally. Its cash and bank balances stood at AED 3.24 billion, while debt remained "negligible".
"We will use our strong cash base to seek out further investment opportunistic deals," said Bouazza.
The company made a series of investments during the first half of the year.
Last January, it invested AED 92 million in Rihanna's Savage X Fenty, a direct-to-consumer e-commerce fashion company.
Last April, it invested AED367 million as a cornerstone investor in the initial public offering (IPO) of Dubai Electricity and Water Authority (DEWA). In May, the company invested AED 183.75 million in the IPO of Borouge.
(Reporting by Cleofe Maceda; editing by Daniel Luiz)
