- Group net revenues up 58% year-on-year, surpassing AED 1 billion
- Net profit increased to AED 82 million, growing at a higher rate vs. revenue and supported by the consolidation of margin accretive acquisitions in 2021
- Strong start to 2022 builds on successful first year of Agthia’s five-year growth strategy
Abu Dhabi, UAE – Agthia Group PJSC, one of the region’s leading food and beverage companies, announced today that its quarterly net revenues surpassed AED 1 billion in Q1 2022 for the first time since its inception. The quarter, ending 31st March 2022, saw a 58% year-on-year improvement in net revenues compared to the same period in 2021.
Group net profit attributable to shareholders registered at AED 82 million for the quarter, a 64% increase relative to Q1 2021. The previous quarter was the first when the performance of all five acquisitions made throughout 2021 – Al Foah, Al Faysal Bakery & Sweets, Nabil Foods, Atyab and BMB Group – was consolidated and reflected on the Group’s financial statements.
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. The Group’s impactful start to the year demonstrates we are now well-positioned to begin reaping the fruits of our labor following a year of measured discipline and rigorous application of our strategy to seize growth. 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.”
Al Suwaidi added: “We look to the future with renewed vigor as we continue to accelerate our journey of transformation and drive further growth for shareholders and stakeholders. Our industry-leading cost optimization initiatives and unmatched ability to enhance productivity and integrate new businesses has had a tangible positive impact on the Group as we continue our transformational journey.”
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.”
From a financial perspective, Agthia’s consumer business division achieved substantial growth of 83% compared to the previous year, now encompassing 75% of total group sales.
- The Protein & Frozen segment contributed AED 294 million, driven by the consolidation of Nabil Foods and Atyab. Both businesses recorded higher sales growth versus the same period last year, with Nabil Foods benefitting from a strong recovery in the food service channel and Atyab experiencing increased demand in its cold cuts and chicken categories.
- Snacking added AED 255 million 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 & Beverage, and Other Food items, recorded revenues of AED 238 million. The bottled water segment in the UAE continued to demonstrate resilience while preserving market leadership throughout the quarter, standing respectively at 28.6% for volume and 28.5% in value shares for the retail channel.
- Revenue in the Agri-business division for the quarter stood at AED 266 million, a 13% increase relative to 2021. Ongoing inflation in global grain prices and freight costs continue to be addressed through enhanced operational efficiencies and pricing adjustments.
The Group’s total assets reached AED 6.6 billion as of 31st March 2022, while total shareholders’ equity for the period stood at AED 2.8 billion.
On 7th April 2022, in line with Agthia’s semi-annual policy, the Board of Directors approved a cash dividend equivalent to AED 0.0825 per share for the second half of 2021, with total dividends distributed for the year amounting to AED 130.6 million, an increase from AED 118.8 million in 2020.