UAE – Agthia Group, a leading UAE food and beverage company based in Abu Dhabi, has announced a 10.9% revenue increase to Dh3.27 billion (US$882.9million) for the nine months of 2023 despite facing headwinds in Egypt over depreciating currency.
The Abu Dhabi-based company operates through consumer business and agribusiness that operates Grand Mills flour and Agrivita animal feed products.
The group’s product portfolio is categorized into segments, including flour and animal feed, water and beverages, processed fruits and vegetables, and dairy and frozen baked products.
Group net revenue increased 10.9% year-on-year to AED 3.27 billion (US$882.9M) (9.1% growth from volume and 1.8% from pricing), with a strong performance from the Snacking, Agribusiness, and Water and food segments.
This performance more than offset the adverse impact of continued currency devaluation in Egypt, increasing localization in Saudi Protein, and a more competitive and price-sensitive backdrop in Jordan.
“Agthia’s third-quarter results demonstrate continued progress against strategic objectives – namely, protecting the core business; reaping the rewards of recent value-accretive M&A; and investing in capability to deliver on its vision to become a leading F&B company in the MENA region – and beyond,” said Khalifa Sultan Al Suwaidi, Chairman of Agthia Group.
Group net profit increased 12.7% year-on-year to AED 205.6 million (US$55.5million), with the faster rate of growth relative to revenue reflecting EBITDA margin expansion as well as the cumulative repayment of AED 928 million (US$250.5million) of debt in 2023 to date.
“Another strong and profitable outturn this quarter. It was accompanied by continued investment in capability to future-proof growth and testament to Agthia’s strategy of acquiring, integrating, and growing attractive businesses in value-added categories,” said Alan Smith, Group CEO.
Auf Group acquisition
Over the past year, Agthia has recorded higher demand for its products contributed by the growing number of consumers as the company continues expanding its base outside of the UAE.
In July, Agthia received its board’s approval to acquire 60 percent of Egyptian coffee maker Auf Group as it expands its footprint in the North African country.
The deal would see Auf group holders retain a combined stake of 30% in the business and continue to lead the company with the full backing of Agthia’s regional footprint and operational support.
“As part of our strategy to stimulate growth and enhance our operations, we are focused on expanding Agthia’s footprint in the MENAP. The acquisition of Auf Group is a compelling opportunity to bolster our delivery of this commitment while further penetrating one of the region’s fastest-growing consumer markets,” Khalifa Sultan commented.