- Revenues from protein and frozen foods and snacks increase by 39% and 71% respectively
- Group net profit for the quarter was AED40.5 million, up 14% year-on-year
Abu Dhabi, United Arab Emirates: – Agthia Group PJSC, one of the region’s leading agribusiness companies, today announced net revenue of AED954 million for the third quarter of 2022, up 20 % year over year, following the successful consolidation and integration of recent acquisitions .
Group EBITDA grew 23% year-on-year to reach AED128 million despite strong upward pressure on raw material costs during the period, demonstrating both strong discipline in terms of costs and the exploitation of synergies in new vertical sectors. Net profit amounted to AED40.5 million, up 14% from the previous year.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Agthia’s strong performance in the third quarter demonstrates management’s proven ability to acquire and consolidate value-added businesses while leveraging synergies and maintaining a profitable core. In conjunction with its clear strategic priorities, growing capabilities and strong leadership team, I am confident that Agthia will continue to deliver value to all stakeholders in the short and long term, while continuing its transformation journey towards a leading food and beverage company. in the MENAP region and beyond.
Alan Smith, Chairman and CEO of Agthia Group, said: “Despite a challenging external environment, I am pleased to report another quarter of profitable growth, combining the strong performance of recently acquired businesses and our continued focus on driving efficiencies. We continue to consolidate our strategic acquisitions made this year and last year and look forward to completing the acquisition of the Auf Group – having already obtained the necessary board approvals – to strengthen our Egyptian footprint and further develop our snacking division. We remain excited about the growth opportunity long term that is available to us.
From a financial point of view:
- Turnover in Agthia’s Consumer Business division increased by 29% year-on-year and now represents 76% of the group’s total, compared to 71% the previous year.
- Proteins and Frozen foods revenue was AED 308 million, up 39% year-on-year, reflecting good portfolio and channel management. At constant exchange rates, taking into account the recent devaluation of the Egyptian pound, sales growth in the third quarter was 56% year-on-year.
- Snacks revenue was AED 182 million for the quarter, up 69% year-on-year and supported by strong growth in the Group’s dates business. BMB, consolidated since the beginning of 2022, contributed AED55 million.
- Water and food revenue was AED238 million for the quarter, with 1% year-on-year growth reflecting lower demand in the UAE, travel post-pandemic outflows having accelerated during the holiday season. UAE bottled water market leadership in retail was maintained with a market share of 27.9%, with good incremental growth in both foodservice and delivery subscriptions at 5 gallon home.
- Agribusiness revenue for the quarter was AED225 million, down slightly year-on-year, reflecting weaker demand during the summer months, although only up 10% since the start of the year. Proactive mix management during the quarter supported stronger year-over-year profitability, offsetting strong inflationary pressures across key commodities.
Agthia also announced a long-term strategic lease covering the assets and operations of the frozen bakery business in the UAE with the Middle East operations of La Lorraine, a Belgium-based bakery group with over 80 years of experience. experience in milling and baking.
The group’s total assets stood at AED 6.6 billion as of September 30, 2022, while total equity for the period stood at AED 2.8 billion.
In line with Agthia’s semi-annual dividend payout policy, a cash dividend equivalent to 8.25 fils per share for the first half of 2022 was paid after all subsequent approvals on October 1, 2022.
Agthia Group is a leading food and beverage company based in Abu Dhabi. Founded in 2004, the Company is listed on the Abu Dhabi Stock Exchange (ADX) and bears the symbol “AGTHIA”. Agthia Group PJSC is part of ADQ, one of the largest holding companies in the region with a broad portfolio of major businesses spanning key sectors of Abu Dhabi’s diverse economy.
The Company’s assets are located in the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Egypt, Turkey and Jordan. Agthia offers a portfolio of world-class integrated businesses providing high quality and reliable food and beverage products to consumers in the UAE, GCC, Turkey and the Greater Middle East. More than 9,300 employees are engaged in the manufacturing, distribution and marketing of various products in categories such as: consumer business (Al Ain Water, Al Bayan, Alpin Natural Spring Water, Ice Crystal, VOSS, Al Ain Tomato Paste, Al Ain Trading Items);Snacking (Al Foah, Yoplait, Al Faysal Bakery & Sweets, BMB,);Proteins and frozen foods (Nabil Foods, Atyab, Al Ain Frozen Vegetables); andAgribusiness(Grands Moulins, Agrivita).