UAE – Abu Dhabi-based food and beverage company, Agthia Group PJSC, has reported that its net revenue for Q1 jumped by more than 12 percent annually to Dh1.18 billion (US$321M) on the back of strong growth in its snacks and protein branches.
Agthia, which is owned by Abu Dhabi’s state-holding company ADQ has been on a deal-making spree to become the biggest food and beverage company in the region by 2025. It is aiming for an annual revenue of Dh6 billion ( US$1.6B) in the next two years.
Its product portfolio is categorized into segments, including flour and animal feed, water and beverages, processed fruits and vegetables, and dairy and frozen baked products.
The company’s assets are in the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey, and Jordan, with distribution in countries including China, India, Brazil, and Indonesia.
According to Zawya, the Group has gained a 6.5% increase in its first-quarter net profit year-on-year to AED 97 million (US$26.4M) in Q1 results for the three months ending 31 March 2023.
The report revealed that the Group’s revenue rose despite higher interest rates and a currency challenge in Egypt, its export hub.
According to the report, the Group’s revenue growth was nearly 23 percent year on year with 6% from pricing and 6% volume growth, as increasing diversification by brand and geography enabled Agthia to “optimize product and channel mix” through the quarter.
Earnings before interest, taxes, and amortization (EBITDA) growth was ahead of revenue, up nearly 19 percent year-on-year to Dh188 million, or plus 31.7 percent year-on-year “excluding the impact of the Egyptian pound devaluation.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group said that Agthia’s continuing momentum in the first quarter of this year, notwithstanding a challenging external environment, is a testament to its progressive leadership and seamless execution of its strategy to become a leading food and beverage company in the MENAP region and beyond.
“I am confident that Agthia will continue to create value for all stakeholders in both the near and longer-term as it continues its journey, “he added.
According to the company, Egypt is a strategically important market for Agthia, not only in the favorable, long-term socio-demographics and structural demand for protein, snacking, and coffee products, but increasingly as a manufacturing hub.
In December, Agthia completed the acquisition of a majority stake (60%) in Egypt’s snacks and coffee producer, Auf Group.