UAE's Agthia Group posts 64% year-on-year rise in net profit for Q1 2022
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UAE’s Agthia Group posts 64% year-on-year rise in net profit for Q1 2022

UAE’s Agthia Group posts 64% year-on-year rise in net profit for Q1 2022

Agthia’s quarterly net revenues surpassed Dhs1bn for the first time since inception

Agthia Group

UAE-based food and beverage company Agthia Group reported Dhs82m in group net profit attributable to shareholders for Q1 2022, marking a 64 per cent increase over Q1 2021.

It also reported a quarterly net revenue that surpassed Dhs1bn in Q1 2022 for the first time since inception. The quarter ending March 31, 2022, saw a 58 per cent year-on-year surge in net revenues compared to an year-earlier period.

Agthia’s consumer business division achieved a growth of 83 per cent compared to the previous year, encompassing 75 per cent of total group sales. The protein and frozen segment contributed Dhs294m, driven by the consolidation of Nabil Foods and Atyab. Both businesses recorded higher sales growth versus the same period last year, official news agency WAM reported.

Read: Abu Dhabi’s Agthia Group completes acquisition of Nabil Foods

Snacking added Dhs255m to the top-line, driven by the first quarter inclusion of BMB Group and higher year-on-year revenues delivered by Al Foah and Al Faysal Bakery & Sweets.

Water and beverage, and other food items, recorded revenues of Dhs238m. Revenue in the agri-business division for the quarter stood at Dhs266m, a 13 per cent increase over 2021. The group’s total assets reached Dhs6.6bn as of March 31, 2022, while total shareholders’ equity for the period stood at Dhs2.8bn.

Last month, the group’s shareholders approved a cash dividend of 8.25 per cent, equivalent to 8.25 fils per share. Total dividends distributed for the year amounted to Dhs130.6m, a 9.9 per cent increase relative to Dhs118.8m distributed in 2020.

Read: Agthia’s shareholders approve 8.25% cash dividend for H2 2021

Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said: “Agthia’s first quarter results for 2022 are indicative of the hard work throughout the previous year to acquire and consolidate value-accretive brands that complement our existing portfolio of companies. This achievement is just the beginning of our mission to build a more holistic, efficient, and integrated business model after successfully rounding out the first year of our five-year strategy.”

“We look to the future with renewed vigour as we continue to accelerate our journey of transformation and drive further growth for shareholders and stakeholders.”

Alan Smith, chief executive officer of Agthia Group, said: “In the first quarter of 2022, our attention was focused primarily on the seamless integration of the entities acquired in 2021. Despite the ongoing fluidity of market conditions and a challenging global inflationary environment, we are steadfast in continuing Agthia’s journey of transformation. Our first quarter results are proof of our conviction in the M&A activities conducted last year through the generation of healthy growth to our top-line revenues across all our verticals. We see significant headroom to grow further as we continue to pursue full integration as a top priority in 2022 and we remain firmly on-track to deliver against our five-year strategic roadmap.”

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