Abu Dhabi’s Agthia Group posts Dhs216m in net profit for 2021

Food and beverage company Agthia Group has reported that the group’s net profit stood at Dhs216m, rising 535 per cent compared to Dhs34m in the previous year.

Meanwhile, the group’s net revenue reached Dhs3.07bn in 2021, reflecting a 49 per cent year-on-year growth compared to the same period last year, following the consolidation and integration of key acquisitions into the business.

The improvement to net income was underpinned by the addition of Al Foah, Al Faysal Bakery, Nabil Foods and Atyab alongside key cost optimisation initiatives and pricing that mitigated the impact of higher raw material costs and additional merger and acquisition (M&A) related fees, a statement said.

Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said: “Agthia’s financial results for 2021 showcased a strong year for the business amid ongoing market volatility and challenging economic headwinds as the world recovers from Covid-19 and faces inflation. Despite these challenges, we continued our disciplined and methodical execution of the growth strategy we outlined for Agthia.”

“In 2022, we look forward to delivering further growth and value for our shareholders as we accelerate the growth potential of our new businesses and add new value accretive platforms to our existing businesses.”

Alan Smith, CEO of Agthia Group, said: “In 2021, our primary focus was the consolidation of our Consumer Business Division (CBD), which almost doubled versus the previous year, as a result of our targeted approach towards strategic acquisitions. Our M&A activity throughout 2021 showcases our ongoing commitment to evolving the business into growth accretive consumer goods categories with the acquisition and consolidation of four new entities across the protein and snacking segments, contributing a healthy Dhs1.07bn to sales.

“We will continue to explore strategic investment opportunities while working on fully realising integration benefits from the strong businesses acquired over the past year. Our track record for cost optimisation was sustained throughout the year, underpinned by complementary additions to our business, as we move towards our target of Dhs200m productivity improvement by 2025.”

On the financial side, the CBD contributed towards 70 per cent of total group revenues, a 15 per cent increase in contribution compared to 2020. Agri-business division revenues totalled Dhs931m for the year. The protein, frozen and snacking segments contributed Dhs656m and Dhs540m respectively to the top-line, driven by the addition of the four new businesses to Agthia’s growing portfolio.

Segments such as water and beverage, and other food items, recorded revenues of Dhs941m. The bottled water segment in the UAE – which includes Al Ain Water, Al Bayan, Voss, and Alpin – stood respectively at 26 per cent for volume and 23 per cent in value shares. Revenue in the agri-business division was flat versus 2020.

At the end of 2021, the group’s total assets reached Dhs6.4bn following the consolidation of new assets into the business, up from Dhs3.1bn as recorded for the previous year. Total shareholders’ equity stood at Dhs2.8bn for the period, increasing from Dhs1.9bn in 2020.

In line with its semi-annual policy, Agthia’s board of directors recommended an 8.25 per cent cash dividend for the second half of 2021, equivalent to Dhs0.0825 per share and, once approved by shareholders, total dividends distributed for the year will amount to Dhs130.6m, an increase from Dhs118.8m in 2020.