Agthia Q3 revenue grows 20% to AED 954 million underpinned by strong performance from recent acquisitions

Agthia Q3 revenue grows 20% to AED 954 million underpinned by strong performance from recent acquisitions
  • Consumer Business Division (CBD) revenue increased from 71% to 76% of total group revenue
  • Protein & Frozen and Snacking revenues rise 39% and 71% respectively
  • Group net profit for the quarter stood at AED 40.5 million, increasing 14% year-on-year

Abu Dhabi, UAE, 08 November 2022 – Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced net revenue of AED 954 million for Q3 2022, up 20% year-on-year, following the successful consolidation and integration of recent acquisitions.

Group EBITDA increased 23% year-on-year to AED 128 million notwithstanding significant upwards pressure on raw material costs in the period, testament to both strong cost discipline and leveraging synergies across new verticals. Net profit was AED 40.5 million, up 14% on the prior year.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Agthia’s strong third quarter performance demonstrates management’s proven ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core. In conjunction with its clear strategic priorities, growing capabilities, and strong executive team, I am confident that Agthia will continue to deliver value for all stakeholders in both the near and longer-term as it continues its transformative journey to a leading food and beverage company in the MENAP region and beyond.”

Alan Smith, Chief Executive Officer of Agthia Group, said: “Despite a challenging external backdrop, I am pleased to report another quarter of profitable growth, combining strong performance from recently acquired businesses and our enduring focus on efficiency generation. We continue to consolidate our strategic acquisitions made this year and last year and look forward to completing the acquisition of Auf Group – having already secured the necessary approvals from the Board of Directors – to enhance our Egyptian footprint and further expand our snacking division. We remain enthused by the long-term growth opportunity ahead of us.”

From a financial perspective:

  • Revenue from Agthia’s Consumer Business Division grew 29% year-on-year, and now represents 76% of the total group, up from 71% in the prior year.
    • Revenue from the Protein & Frozen segment was AED 308 million, up 39% year-on-year, reflecting good portfolio and channel management. On a constant currency basis, adjusting for the recent devaluation in the Egyptian pound, Q3 sales growth was 56% year-on-year.
    • Snacking revenue was AED 182 million for the quarter, up 69% year-on-year and underpinned by strong growth from the Group’s dates business. BMB, consolidated from the start of 2022, contributed AED 55 million.
    • Water & Food revenue was AED 238 million for the quarter, with 1% growth year-on-year reflecting lower demand across the UAE as post-pandemic outbound travel accelerated over the holiday period. Market leadership in UAE bottled water across retail was maintained with a 27.9% share, with good incremental growth across both Food Service and 5-gallon home delivery subscriptions.
  • Agri-business revenue for the quarter was AED 225 million, marginally down year-on-year reflecting lower demand during the summer months, albeit up 10% on a year-to-date basis. Proactive management of mix in the quarter supported stronger profitability year-on-year, offsetting significant inflationary pressures across key commodities.

Agthia also announced a strategic long-term lease covering the assets and operations of the UAE frozen bakery business with the Middle East operations of La Lorraine, a Belgian-based Bakery Group with over 80 years of milling and bakery experience.

The Group’s total assets stood at AED 6.6 billion as of 30th September 2022, while total shareholders’ equity for the period stood at AED 2.8 billion.

In line with Agthia’s semi-annual dividend distribution policy, a cash dividend equivalent to 8.25 fils per share for the first half of 2022 was disbursed post all subsequent approvals on 1st October 2022.