Agthia Group is already reaping the rewards of its recent acquisitions, as its net revenue grew 20 percent year-on-year to AED954 million ($259.7 million) for third quarter of 2022.
Agthia is one of the region’s leading food and beverage companies. It acquired 60 percent of Auf Group, a specialised healthy snacks and coffee manufacturer and retailer in Egypt, in July this year. In September 2021, it had acquired Ismailia Investments (Atyab), an Egyptian producer of frozen processed chicken and beef products, followed by BMB, a UAE-based healthy snacks and food company in December 2021.
Group EBITDA increased 23 percent year-on-year to AED128 million ($34.85 million) notwithstanding significant upwards pressure on raw material costs in the period, thanks to strong cost discipline and leveraging synergies across new verticals.
Net profit was AED40.5 million ($11.03 million), up 14 percent on the prior year.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, 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.
“In conjunction with its clear strategic priorities, growing capabilities, and strong executive team, I am confident that Agthia will continue to deliver value for all stakeholders in both the near and longer-term as it continues its transformative journey to a leading food and beverage company in the MENAP region and beyond.”
Alan Smith, Chief Executive Officer of Agthia Group, commented: “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.
“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. We remain enthused by the long-term growth opportunity ahead of us.”
In a statement filed with the Abu Dhabi Securities Exchange (ADX), the company said that the revenue from its Consumer Business Division grew 29 percent year-on-year, and now represents 76 percent of the total group, up from 71 percent in the prior year.
Revenue from the Protein & Frozen segment was AED308 million, up 39 percent year-on-year, reflecting good portfolio and channel management. On a constant currency basis, adjusting for the recent devaluation in the Egyptian pound, Q3 sales growth was 56 percent year-on-year. Snacking revenue was AED182 million for the quarter, up 69 percent year-on-year and underpinned by strong growth from the group’s dates business.
BMB, consolidated from the start of 2022, contributed AED55 million. Water & Food revenue was AED238 million for the quarter, with 1 percent growth year-on-year reflecting lower demand across the UAE as post-pandemic outbound travel accelerated over the holiday period. Market leadership in UAE bottled water across retail was maintained with a 27.9 percent share, with good incremental growth across both Food Service and 5-gallon home delivery subscriptions.
Agri-business revenue for the quarter was AED225 million, marginally down year-on-year reflecting lower demand during the summer months, albeit up 10 percent on a year-to-date basis. Proactive management of mix in the quarter supported stronger profitability year-on-year, offsetting significant inflationary pressures across key commodities.
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 AED6.6 billion as of 30th September 2022, while total shareholders’ equity for the period stood at AED2.8 billion.
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 1st October 2022.
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