UAE’s Agthia Group reports 14% rise in net profit for Q3 2022

UAE-based food and beverage company Agthia Group reported net profit amounting to Dhs40.5m for Q3 2022, up 14 per cent on the prior year.

Its net revenue totalled Dhs954m for the third quarter of the year, rising 20 per cent year-on-year, following the consolidation and integration of recent acquisitions.

قال آلان سميث، الرئيس التنفيذي لمجموعة أغذية: “على الرغم من الظروف الصعبة في السوق، يسعدني أن أعلن عن اختتام ربع آخر حافل بالنمو والأرباح، وذلك نتيجة عدة عوامل من بينها الأداء القوي للشركات التي استحوذنا عليها مؤخراً، وتركيزنا المستمر على تعزيز كفاءة أعمالنا. pic.twitter.com/HZBSbHrSqn

— Agthia Group (@AgthiaGroup) November 8, 2022

Group EBITDA increased 23 per cent year-on-year to Dhs128m notwithstanding upwards pressure on raw material costs in the period, a statement said.

“Agthia’s strong third quarter performance demonstrates management’s proven ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core,” said Khalifa Sultan Al Suwaidi, Chairman of Agthia Group.

Revenue from Agthia’s consumer business division grew 29 per cent year-on-year, representing 76 per cent of the total group. Meanwhile, revenue from the protein and frozen segment reached Dhs308m, up 39 per cent year-on-year. Snacking revenue stood at Dhs182m for the quarter, up 69 per cent year-on-year.

The group’s water and food revenue equalled Dhs238m for the quarter, with 1 per cent growth year-on-year. Agri-business revenue for the quarter stood at Dhs225m, marginally down year-on-year reflecting lower demand during the summer months.

“Despite a challenging external backdrop, I am pleased to report another quarter of profitable growth, combining strong performance from recently acquired businesses and our enduring focus on efficiency generation,” added Alan Smith, chief executive officer of Agthia Group.

“We continue to consolidate our strategic acquisitions made this year and last year and look forward to completing the acquisition of Auf Group – having already secured the necessary approvals from the Board of Directors – to enhance our Egyptian footprint and further expand our snacking division.”

Agthia also announced a strategic long-term lease covering the assets and operations of the UAE frozen bakery business with the Middle East operations of La Lorraine, a Belgian-based Bakery Group with over 80 years of milling and bakery experience.

The Group’s total assets stood at Dhs6.6bn as of September 30, 2022, while total shareholders’ equity for the period stood at Dhs2.8bn. Additionally, in line with Agthia’s semi-annual dividend distribution policy, a cash dividend equivalent to 8.25 fils per share for the first half of 2022 was disbursed post all subsequent approvals on October 1, 2022.

Read: UAE’s Agthia Group announces interim cash dividend of Dhs65.31m for H1 2022