Agthia expands footprint with Dhs90m manufacturing facility in Saudi Arabia

UAE food and beverages group Agthia has opened its Dhs90m protein manufacturing facility in Jeddah’s Industrial City 1, marking its expansion into Saudi Arabia.

The new facility, built to cater to the increasing demand for Agthia’s popular protein brands, underscores the group’s strategic vision to tap into the vast growth opportunities in the GCC region’s largest market.

“By boosting local production capabilities, the group aims to leverage favourable economic conditions, enhance its market presence, and solidify its position within this highly rewarding market,” Agthia said in a bourse filing.

The new facility covers more than 9,000 square meters and is designed to achieve an annual production capacity exceeding 9,000 tonnes. It features two production lines capable of manufacturing more than 50 distinct stock-keeping units (SKUs), supported by a diverse supply chain of over 69 raw materials.

Agthia’s Jeddah facility is equipped with in-house microbiology and sensory evaluation laboratories, ensuring high standards of quality control and product development.

With the Saudi Arabian processed meat market expected to hit $7.11bn by the end of the decade, growing at a CAGR of 5.49 per cent, the investment in the new manufacturing facility positions the group to capitalise on this growth.

“By bolstering our presence in Saudi Arabia’s rapidly expanding processed meat market, we are not only reinforcing our market position but also contributing significantly to the diversification and growth of our regional product portfolio,” said Alan Smith, CEO of Agthia Group.

Agthia’s quarterly revenue rose by 22.6 per cent year-on-year (YoY) to Dhs1.45bn in Q1 2024, driven by a continued shift in the company’s product portfolio towards higher-growth segments in key target markets.

The Abu Dhabi-listed firm reported a 32 per cent YoY increase in profit, reaching Dhs127.6m. Despite facing foreign exchange challenges and the introduction of income tax in the UAE, the company’s profit margin grew by 63 basis points to 8.8 per cent.

Its earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs232.6m in the three months to March 31, up 23.4 per cent compared to the same period a year ago.

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