UAE – Agthia Group, a leading UAE food and beverage company based in Abu Dhabi, has posted a 32% jump in net profit for Q1 2024 on the back of strong growth across all business segments.

During the three-month ending March 31, 2024, the food and beverage firm recorded a total net profit of AED 127.6 million (US$34.7 million).

Group net revenue increased 22.6% year-on-year (YoY) to AED 1.45 billion (US$ 395M) despite challenging global macroeconomic conditions, the company said on Wednesday.

Listed on the Abu Dhabi Securities Exchange, Agthia 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.

According to the group, revenue from the snacking business rose by 17.7% YoY, driven by robust growth across the company’s snacking portfolio.

On the other hand, revenue from the water and food business increased by 3.5%, while the protein and frozen division saw a 15.9% rise in revenue.

The celebrated financial report is a reflection of the Group’s net profits surge in 2023, which the company attributed to impressive sales in the snacks and agri-business sections

For the marketing year 2023, Agthia reported an attributable net profit of 261.01 million dirhams (US$71.06M), a 16% jump compared to AED246.79 million (US$61.19M) in 2022.

According to the company, revenue in the snacking vertical grew 38% year-on-year, which the company attributed to ‘strong value growth across retail channels in the UAE and internationally’

Agthia’s EBITDA grew 21.2% year-on-year to AED689.3 million (US$187.67M), inclusive of currency headwind, reflecting strong growth in the company’s snacking vertical, which saw a growth of 62.0% year-on-year.

Despite revenue for the company’s protein and frozen business declining by 10.8% due to “currency headwinds in Egypt” and “increased competitiveness in the Jordan protein market”, the overall group net revenue increased 12.1% year-on-year to AED4.56 billion.

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