Group revenues stood at AED 2.06 billion in 2020, up 1.1 percent versus last year
The Group embraced transformational changes across its businesses despite the challenges imposed by the COVID-19 pandemic
The Board of Directors recommended AED 0.165/share cash dividend for the year 2020
Dividend distribution policy for the year 2021 onward to be on a semi-annual basis
Abu Dhabi, UAE – Agthia Group PJSC, a leading regional food and beverages company, announced the Group’s net revenue reached AED 2.06 billion in 2020, which is equivalent to 1.1 percent y-o-y growth compared to the same period last year.
The Group’s net profit came in at AED 34.5 million. Normalized net profit of AED 117 million excludes the aggregate AED 82 million one-offs recorded in the first 9 months, post the strategic review exercise with the ultimate aim of improving the quality of earnings and positioning the Group for long-term sustainable growth.
Khalifa Sultan Al Suwaidi, Chairman, Agthia Group, said: “Agthia’s financial results for 2020 are a good indication of the Group’s unwavering ability to maintain its market leadership and increase revenue even amid a challenging year. The Group’s ability to adapt to market challenges, combined with an unwavering focus on consumers and partners, are the foundation for this success. Over the past year, we also continued to invest behind opportunities we believe will deliver the best returns. From M&As to innovation and technology, we enhanced capabilities and drove efficiencies across the business.”
He added: “We are determined to build our business while simultaneously making a positive impact on the issues that matter most to our stakeholders and consumers. We will continue to focus on long-term value creation for all and actively support our industry and our communities.”
Alan Smith, Chief Executive Officer, Agthia Group, said: “2020 was a challenging year but we remained agile and resilient to counteract potential setbacks. We adopted a prudent policy to improve supply chain and delivery, and following a strategic review, we decided to move Agthia more into the consumer product space. Our recent M&As are an indication of this change. As we introduce new businesses into the organisation, our intention is to create an integrated business, which provides us revenue and cost synergies, and improves the long-term quality of earnings. We remain optimistic with our strategic direction and look forward to a continued positive trend.”
In support of the growth agenda, the Group underwent major changes in 2020 including the appointment of a new board, CEO and new top team additions. The new leadership was instrumental in delivering the following milestones:
The acquisition of Al Foah, the world’s largest date processing and packaging brand in order to diversify the Group’s product portfolio, expand its footprint in value-added retail products and enhance competitive access to new markets.
The acquisition of Al Faysal Bakery & Sweets, one of Kuwait’s leading industrial bakeries, thereby upscaling the Group’s operations in the country by taking advantage of distribution synergies and cost optimization.
In line with the long-term commitment to sustainability and to tap into the premium water segment in the UAE, Agthia Group also signed a UAE distribution partnership agreement with VOSS of Norway AS.
On the financial side, the consumer business – water & beverage and food – contributed 55 percent of the Group’s top-line. The remaining 45 percent came from the agri-business – flour and animal feed. Further breakdown of the revenues of the Group are as follows:
The agri-business brought in AED 935 million revenue, which is a 4.9 percent y-o-y growth, mainly driven due to the outperformance of the flour segment, which registered a top line growth of 11 percent.
The water & beverage brought in AED 799 million in revenue, with the 5-gallon business registering growth at 7.8 percent due to higher demand from homes. All of Agthia’s water portfolio – Al Ain Water, Al Bayan and Alpin – maintained their market leadership at respective 27 and 24 percent volume and value shares, despite the 10.9 percent decline in the overall market size of bottled water in the UAE during 2020 versus the previous year, according to an AC Nielsen retail audit report.
The food segment recorded a significant y-o-y growth of 32 percent, bringing in revenues of AED 327 million. The positive growth was made possible by our proactive response to the increased at-home consumption and growing e-commerce orders.
The Group’s total assets as of 31 December 2020 stood at AED 3.1 billion. Group shareholders’ equity stood at AED 1.9 billion for the same period.
The Board of Directors has recommended a 16.5 percent cash dividend for the year 2020 equivalent to AED 0.165/share, a 10 percent increase versus last year.
All recommendations and reports will be presented for the approval of the Annual General Assembly meeting of the Shareholders for their consideration and approval after getting the approvals form the regulatory authorities.
Finally, the Board has approved a change in policy to a semi-annual distribution of dividends for the year 2021 and onward, subject to legal and regularity approvals.