Abu Dhabi-based food and beverage company Agthia Group reported a 61 percent increase in net profits for the first half of 2021, reaching AED67.9 million ($18.5m), as the company continues to recover from the impacts of the pandemic.
Total revenues also rose to AED1.32 billion ($359.4m), representing a 21 percent year-on-year growth, mainly boosted by recent acquisitions in the UAE (Al Foah dates), Kuwait (Al Faysal Bakery), and Jordan (Nabil Foods).
“Agthia’s H1 performance has been driven by acquisition synergies, acceleration of transformation and additional cost optimization. We anticipate the momentum of this performance to continue over the coming months,” said Alan Smith, CEO of Agthia Group.
The group’s consumer business division recorded AED855m ($232.8m) in revenues, while net revenue of the food segment increased by 12 percent on the inclusion of Al Faysal Bakery & Sweets’ consolidation.
The second quarter of 2021 also saw the water and beverage category return to growth compared to the same period last year, driving H1 2021 revenue to AED390m ($106.2m).
Agthia’s agribusiness revenue reached AED463.5m ($126.2m), but lagged sales for the same period in 2020, which included a one-time boost from a World Food Programme order.
Alan Smith, CEO of Agthia Group.
The group’s total assets as of June 2021 stood at AED4.6 bn ($1.3bn), up 46 percent compared to 2020, post consolidating the assets of Al Foah, Al Faysal Bakery and Nabil Foods during the period.
“As we enter the second half of the year, we look forward to delivering on our growth strategy to become an food and beverages leader in the MENAP region, while focusing on retaining our market leadership, financial resilience and delivering sustainable stakeholder value,” said group chairman Khalifa Al Suwaidi.
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