Agthia Group PJSC, a prominent food and beverage company in the region, showcased strong performance during the first half of 2024, positioning itself well to achieve its full-year 2024 goals. The company’s growth across all segments, combined with efficient operations, led to a faster growth in Group EBITDA and net profit compared to revenue.
Group net revenue saw a 14.7% year-on-year increase to DH2.5 billion, driven by volume and pricing growth. The company’s shift towards higher growth segments in key markets and focus on innovation played a significant role in this growth. Snacking revenue rose by 19.5%, with strong performance in the coffee segment in Egypt and growth in the dates category. Protein & Frozen revenue grew by 7.2%, supported by a new manufacturing plant in Jeddah. Water & Food revenue increased by 4.0%, with Al Ain bottled water retaining its market leadership position. Agri-Business revenue also saw a 25.4% increase.
Agthia’s EBITDA growth outpaced revenue, rising by 19.9% year-on-year to DH382.4 million. The company’s net profit grew by 31.8% to DH190.0 million, despite FX headwinds and new income tax regulations in the UAE. The company’s balance sheet remains strong, with cash and equivalents of DH0.4 billion and liquidity of DH1.8 billion.
The company’s board of directors has proposed an interim cash dividend of DH85.7 million, a 25% increase from the previous year. Agthia is maintaining its full-year guidance, expecting revenue growth between 10% and 12%, with margin improvements in EBITDA and net profit. The Chairman and Group CEO expressed confidence in the company’s performance and growth strategy, emphasizing their commitment to delivering sustainable value and capitalizing on opportunities in the MENA region.
Overall, Agthia Group’s strong performance in the first half of 2024 reflects its strategic focus on growth, innovation, and operational excellence. With continued investments in brands, synergies, and efficiency gains, the company is well-positioned to achieve its long-term goals and drive sustainable growth in the future. The launch of a new state-of-the-art protein facility in Jeddah further solidifies Agthia’s position in the market and sets the stage for future growth.
