Two Point Zero Group

1. Company Overview & Earnings Context

Two Point Zero Group PJSC, formerly Multiply Group PJSC, is an Abu Dhabi-based diversified investment and operating group. The Group’s activities span consumer businesses, energy, investments and asset management, mining, financial services, food and agriculture, technology, infrastructure and other diversified activities. Following the share-swap transaction involving Two Point Zero Holding RSC Limited and Ghitha Holding PJSC, the Group’s scale and business mix changed substantially. International Holding Company PJSC is the parent company, while Fount Trust is identified as the ultimate parent company. 

The nine months ended 30 September 2026 therefore represent a structurally different reporting period from 9M 2025. Revenue surged to AED 33.70 billion from AED 2.24 billion, while net profit increased to AED 9.55 billion from AED 2.69 billion. The magnitude of the YoY increase reflects the enlarged consolidated Group and acquisitions, meaning simple YoY growth rates are not representative of purely organic operating growth. 

Another critical feature of earnings quality was the Group’s investment portfolio. A AED 5.80 billion net fair-value gain on financial assets measured through profit or loss contributed materially to 9M profit. Consequently, reported net profit significantly exceeded the earnings generated solely from the Group’s underlying operating businesses. 

The Group also completed multiple acquisitions and investments during 2026, including Baobab S.A., PI9/ISEM and Traverse Midstream Partners, further expanding its exposure to financial services, packaging and energy infrastructure.

2. Financial Performance Snapshot

• Revenue: AED 33,696.6 Million vs. AED 2,240.7 Million (+1,404% YoY)

• Cost of Revenue: AED 24,381.6 Million vs. AED 1,027.0 Million

• Gross Profit: AED 9,315.0 Million vs. AED 1,213.7 Million (+668%)

• Gross Margin: 27.6% vs. 54.2%

• Investment & Other Income: AED 2,982.1 Million vs. AED 872.0 Million

• Net Fair-Value Gain on FVTPL Financial Assets: AED 5,797.4 Million vs. AED 16.9 Million loss

• Share of Results from Associates/JVs: AED 65.8 Million vs. AED 3.0 Million

• G&A Expenses: AED 2,655.4 Million vs. AED 442.3 Million

• Selling & Distribution Expenses: AED 2,786.6 Million vs. AED 439.5 Million

• JV Impairment: AED 500.0 Million vs. AED 845.0 Million

• Finance Costs: AED 1,372.8 Million vs. AED 395.5 Million (+247%)

• Profit Before Tax – Continuing Operations: AED 10,858.5 Million vs. AED 2,675.6 Million (+306%)

• Income Tax: AED 1,275.4 Million vs. AED 61.4 Million

• Profit from Continuing Operations: AED 9,583.1 Million vs. AED 2,614.2 Million

• Discontinued Operations: AED 34.7 Million loss vs. AED 76.9 Million profit

• Net Profit: AED 9,548.5 Million vs. AED 2,691.1 Million (+255%)

• Profit Attributable to Owners: AED 8,595.3 Million vs. AED 2,644.5 Million

• Non-Controlling Interests: AED 953.1 Million vs. AED 46.6 Million

• EPS: AED 0.250 vs. AED 0.240 

Q3 2026 Performance

• Revenue: AED 11,842.2 Million vs. AED 1,220.3 Million

• Gross Profit: AED 3,008.1 Million vs. AED 704.6 Million

• PBT from Continuing Operations: AED 2,257.6 Million vs. AED 1,938.6 Million

• Net Profit: AED 1,819.9 Million vs. AED 1,948.8 Million (-6.6%)

• Profit Attributable to Owners: AED 1,513.7 Million vs. AED 2,008.6 Million

• Q3 EPS: AED 0.044 vs. AED 0.180 

The underlying earnings picture requires careful interpretation. Although 9M net profit increased 255%, approximately AED 5.8 billion of P&L was generated by fair-value gains on financial investments. Conversely, Q3 reported lower net profit despite the much larger revenue base, partly because Q3 2025 included a substantial AED 2.73 billion gain on disposal of a subsidiary. Therefore, headline YoY profit comparisons are heavily affected by portfolio gains, disposals, acquisitions and the changed Group structure.

Total comprehensive income was only AED 3.57 billion, materially below AED 9.55 billion of reported net profit, primarily because the Group recorded approximately AED 5.45 billion of negative fair-value movements through OCI and AED 523 million of foreign-currency translation losses. 

3. Operating Performance & Major Programs

Two Point Zero now operates through a substantially broader business platform. Management identifies key operating segments including Consumer, Energy, Investments & Asset Management and Mining, with the segment structure revised to reflect the enlarged business model and acquisitions completed during the period.

The geographic mix also changed dramatically. Of AED 33.70 billion of 9M revenue, approximately:

• UAE Revenue: AED 7.47 Billion

• Revenue Outside UAE: AED 26.22 Billion

• International Revenue Contribution: approximately 77.8%

This shows that Two Point Zero has effectively become a predominantly international revenue platform rather than a UAE-only investment group.

Revenue recognition was also dominated by transactional/product activity:

• Revenue recognized at a point in time: AED 29.16 Billion

• Revenue recognized over time: AED 4.53 Billion

Major acquisitions and investments

Baobab S.A. — Beltone acquired 100% of Baobab effective 1 January 2026 for approximately AED 865.8 million. Baobab provides microfinance, SME lending and digital financial services across several African markets. It contributed approximately AED 851.8 million of revenue and AED 103.9 million of profit during the period.

PI9 / ISEM — The Group acquired a 61.84% interest in PI9 S.A.R.L., which owns 98.32% of ISEM, for approximately AED 704.0 million. The business provides premium packaging solutions serving beauty, fashion, luxury and nutraceutical customers. Since acquisition, it contributed approximately AED 281.4 million of revenue and AED 1.6 million of profit.

Traverse Midstream Partners — The Group acquired 100% of Traverse Midstream for approximately AED 7.31 billion. The transaction was accounted for as an asset acquisition rather than a business combination, because substantially all of the acquired fair value was concentrated in identifiable investment assets.

The Traverse transaction provided indirect minority interests in energy infrastructure assets and substantially increased Two Point Zero's investment exposure.

The Group also increased its ownership in International Resources Holding (IRH) from 96.0% to 96.9%, further consolidating its exposure to mining and natural resources.

4. Key Performance Drivers

Consolidation and acquisitions were the primary revenue-growth driver. The increase from AED 2.24 billion to AED 33.70 billion cannot be interpreted as conventional organic growth because the current Group incorporates a significantly expanded collection of businesses following the merger/share-swap and 2026 acquisitions.

International operations have become central to the Group. Approximately 78% of revenue was generated outside the UAE, highlighting the scale of Two Point Zero's international mining, commodities, financial services, energy and other operating activities.

Investment returns were a major profit contributor. The AED 5.80 billion fair-value gain on FVTPL investments represented more than half of reported PBT. This provides substantial upside when investment valuations rise but also introduces greater earnings volatility.

Investment and other income provided another significant earnings stream. It increased to almost AED 3.0 billion, including interest, dividend and other investment-related income.

Finance costs increased sharply. Finance expense rose to AED 1.37 billion from AED 395 million, reflecting the Group's substantially larger borrowing base and acquisition/investment financing.

Borrowings increased materially. Gross borrowings rose from AED 23.18 billion at December 2025 to AED 36.57 billion at September 2026, including AED 24.43 billion of new drawdowns during the period. The Group stated that new facilities were used for working capital, investments and general corporate purposes.

Accounting judgments are particularly important. Despite holding a 90.12% economic interest in OneIM SMA Fund, management concluded that the Group does not control the fund because substantive decision-making authority rests with an independent General Partner/Fund Manager. The investment is therefore measured at fair value through profit or loss rather than consolidated, making valuation movements directly relevant to earnings. 

Management also applied significant judgment to the Traverse Midstream investment. The transaction was classified as an asset acquisition, while qualifying associate investments are measured at FVTPL under the IAS 28 venture-capital-type exemption. 

5. Balance Sheet, Backlog & Cash Flow

• Total Assets: AED 154.98 Billion vs. AED 133.67 Billion (+15.9% YTD)

• Total Equity: AED 97.46 Billion vs. AED 94.64 Billion (+3.0%)

• Equity Attributable to Owners: AED 86.52 Billion

• Retained Earnings: AED 22.91 Billion vs. AED 20.99 Billion

• Cash & Bank Balances: AED 15.71 Billion vs. AED 9.18 Billion (+71%)

• Cash & Cash Equivalents: AED 11.52 Billion

• Total Borrowings: AED 36.57 Billion vs. AED 23.18 Billion (+57.8%)

• Current Borrowings: AED 10.25 Billion vs. AED 2.66 Billion

• Non-Current Borrowings: AED 26.32 Billion vs. AED 20.53 Billion

• Trade & Other Receivables: AED 13.79 Billion vs. AED 5.19 Billion

• Non-Current Receivables: AED 6.30 Billion vs. AED 1.05 Billion

• FVTPL Investments: approximately AED 60.32 Billion

• FVOCI Investments: AED 2.11 Billion

• Investments in Associates/JVs: AED 8.93 Billion

• Loans Receivable: approximately AED 11.51 Billion

• PPE: AED 9.61 Billion

• Intangibles & Goodwill: AED 17.64 Billion

• Total Liabilities: AED 57.53 Billion vs. AED 39.02 Billion

• Net Operating Cash Flow: AED 8.52 Billion vs. AED 1.20 Billion

• Investing Cash Outflow: AED 13.12 Billion

• Financing Cash Inflow: AED 8.77 Billion

• Closing Cash & Cash Equivalents: AED 11.52 Billion vs. AED 2.00 Billion in the prior-year period  

Cash generation was strong on a reported basis. Operating cash flow reached AED 8.52 billion, supported by AED 6.79 billion of operating cash flow before working-capital movements and significant customer-loan repayments.

However, capital deployment was equally aggressive. Investing cash outflow reached AED 13.12 billion, including:

• PPE purchases: AED 1.44 Billion

• Intangible purchases: AED 213 Million

• FVTPL investment purchases: AED 13.19 Billion

• Acquisition payments, net of cash acquired: AED 941 Million

Financing activity provided AED 8.77 billion of net cash, with AED 24.43 billion of new borrowings, partly offset by AED 12.62 billion of debt repayments, AED 1.33 billion of interest payments and AED 976 million of dividends paid to non-controlling interests.  

A traditional industrial backlog is not an appropriate Group-wide measure because Two Point Zero combines operating companies with investment, asset-management, mining, energy and financial businesses. However, contractual and investment commitments are significant:

• Letters of Guarantee: AED 2.77 Billion

• Letters of Credit: AED 1.29 Billion

• Capital Commitments: AED 27.21 Billion

• Investment Commitments: AED 36.28 Billion

• JV/Associate Commitments: AED 7.3 Million

Capital commitments mainly relate to commodity purchases for onward sale to customers, while investment commitments represent unfunded commitments to investment funds and private investments.

6. Investor Takeaway

Two Point Zero's 9M 2026 numbers show the emergence of a much larger and substantially more diversified Group. Revenue reached AED 33.7 billion, assets approached AED 155 billion, equity stood at AED 97.5 billion and reported net profit reached AED 9.55 billion. The Group now has significant international exposure across energy, mining, financial services, investment management, consumer and other operating businesses.

However, investors should distinguish operating growth from portfolio-driven earnings. The AED 5.80 billion FVTPL fair-value gain was a major contributor to the AED 10.86 billion PBT. This means reported profitability is partly dependent on investment valuations and can potentially fluctuate significantly between reporting periods.

The contrast between AED 9.55 billion net profit and only AED 3.57 billion total comprehensive income reinforces this point: large positive P&L fair-value gains were accompanied by approximately AED 5.45 billion of negative FVOCI movements and currency-translation losses. 

Balance-sheet capacity remains substantial, with AED 97.46 billion of equity and AED 15.71 billion of cash and bank balances, but leverage has increased rapidly. Borrowings rose nearly 58% YTD to AED 36.57 billion, and finance costs more than tripled YoY. Current borrowings also increased to AED 10.25 billion, making debt maturity management and refinancing costs important monitoring points.

At the same time, the Group is deploying capital aggressively. Combined capital and investment commitments exceed AED 63 billion, indicating a substantial future investment pipeline but also potentially significant funding requirements. Investors should therefore monitor capital allocation discipline, return on new investments, liquidity and leverage alongside headline earnings.

Key investor monitoring points are the sustainability of investment fair-value gains, organic profitability of the enlarged operating businesses, integration and returns from new acquisitions, growth in borrowings and finance costs, cash conversion, valuation risk in Level 3/private investments, international/geopolitical exposure, and execution on the Group's substantial investment commitments.

Accounting treatment also deserves particular attention because the enlarged Group contains complex investment structures. OneIM SMA Fund is not consolidated despite the Group's 90.12% economic interest, while certain associate investments connected with Traverse are measured at fair value through P&L. These accounting judgments can materially affect both reported asset values and earnings.

The financial statements were prepared under IAS 34 Interim Financial Reporting. Deloitte & Touche (M.E.) performed a review under ISRE 2410 and concluded that nothing had come to its attention indicating that the interim condensed consolidated financial statements were not prepared, in all material respects, in accordance with IAS 34. The review report is dated 29 October 2026. 

Management also disclosed that escalating Middle East geopolitical tensions create heightened regional-security risks, although it was not possible to reliably estimate the potential financial impact as of the reporting date. 

Overall, Two Point Zero's 9M 2026 results demonstrate exceptional expansion in scale, diversification and reported profitability, but the quality of earnings needs to be assessed carefully because acquisitions, consolidation changes and fair-value investment gains materially influence the headline numbers. The central investor question is whether the Group can translate its enlarged AED 155 billion asset base and aggressive capital deployment into sustainable recurring operating returns while keeping leverage and valuation-related earnings volatility under control.