Agthia Group 2022 Preliminary Results – A Year of Strong Growth

Agthia Group 2022 Preliminary Results – A Year of Strong Growth
  • Group net revenue up 33% YoY to AED 4 billion reflecting positive growth across all segments
  • Revenue growth in excess of 70% from key Snacking and Protein segments
  • Net operating income +39% YoY, leveraging synergies while maintaining a profitable core
  • Net profit +14% YoY and Earnings per Share +9% YoY

Abu Dhabi, UAE, 31 January 2023 – Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced preliminary and unaudited results for the fiscal year ending 31 December 2022.

Group net revenue increased 33% year-on-year to AED 4.07 billion, with growth of 97% on a two-year basis. Revenue growth from our Snacking and Protein segments increased by more than 70% year-on-year, with high single-digit growth in our agri-business and continued market leadership in UAE bottled water.

Net operating income grew faster than revenue, up 39% year-on-year to AED 351 million, with greater scale and diversification across the business supporting product and channel optimization and further cost and production efficiencies.

Group net profit increased 14% year-on-year to AED 247 million, notwithstanding industry-wide inflationary pressures across the supply chain, currency devaluation in Egypt, and higher interest rates compared with the prior year.

  • Revenue from our Protein & Frozen segment grew 75% year-on-year (like-for-like (LFL) revenue growth of 13%), with strong brands and effective tiering supporting robust pricing and good volume growth across our Egyptian operations, and proactive mix management and a strong performance from Food Service in our Jordanian operations helping to drive 66% growth in segment profit (13% growth on a LFL basis).
  • Our Snacking segment grew revenue by 75% year-on-year (LFL revenue growth of 12%), with successful new product launches and strong demand from new international markets generating record revenue and profit growth in our Al Foah dates business, and consolidation of the BMB and Abu Auf acquisitions contributing revenue of AED 307 million. Profit from our Snacking segment increased by 60% year-on-year, with LFL growth of 20%.
  • Retention of our market leading position in UAE bottled water, which includes our Al Ain Water, Al Bayan, Voss, and Alpin brands, was testament to improved mix, record levels of new customer acquisition in our 5-gallon business, and the success of key initiatives, such as our “Happiness Pack”, in raising brand awareness.
  • We achieved high single-digit revenue growth in our agri-business, with strong volume growth in core Flour categories. We were also able to pass on a proportion of the significant inflation in raw material costs in Feed. Segment profitability was marginally up year-on-year, testament to good mix management and strong cost discipline.

Agthia Group’s total assets stood at AED 6.8 billion as at 31 December 2022, with total shareholders’ equity of AED 2.8 billion.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Agthia’s strong performance this past year, in a challenging external environment, clearly demonstrates management’s ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core. I am confident that Agthia will continue to deliver value for all stakeholders in both the near and longer-term as it executes its strategy.”

Alan Smith, Chief Executive Officer of Agthia Group, said: “Strong revenue and profit growth over the past year, across both recently acquired and legacy businesses, is testament to the tireless efforts and agility of all our colleagues across the Group. Our strategy to acquire, integrate and grow attractive businesses in value-add categories continues to bear fruit, and two years into our transformative journey to a leading food and beverage company in the MENAP region and beyond, we are far bigger, more efficient and have greater capabilities than ever before.”

The Company’s preliminary results are available on the Company’s website www.agthia.com and at www.adx.ae