Agthia's second-quarter net profit surges 96% on higher revenue

Abu Dhabi company’s revenue in the first half of 2022 reached $544m, driven by consolidation of strategic acquisitions

Agthia, which owns the Al Ain mineral water brand, reported an almost 96 per cent surge in its net profit for the second quarter of 2022. Delores Johnson / The National

Abu Dhabi-based food and beverage company Agthia said second-quarter net profit surged almost 96 per cent on an annual basis on higher revenue.

Agthia's net profit attributable to shareholders rose to nearly Dh36 million ($9.8m) in the three months to the end of June, from Dh18.3m in the same quarter in the previous year period, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The company’s quarterly revenue reached Dh942.48m.

For the first half of 2022, Agthia reported a net profit of Dh118.1m, up 73.8 per cent from the same period last year.

Company’s first-half revenue grew to Dh2 billion ($544m), building on exceptional first-quarter growth and continuing consolidation of strategic acquisitions, the company said in a statement.

Despite the challenging global inflationary environment, Agthia's performance reflects the effects of the group’s recent acquisitions, as well as its cost optimisation efforts as part of its five-year growth strategy, it said.

“Agthia’s first-half results demonstrate the increasing benefits of our growth strategy to strengthen our F&B leadership in the Middle East and beyond," said Khalifa Al Suwaidi, chairman of Agthia Group.

“The acquisitions we have completed over the past year have not only delivered strong top-line growth but also contributed to enhanced profitability, as we integrate the businesses into the group and leverage synergies effectively.”

The company made five acquisitions throughout the past year — Al Foah, Al Faysal Bakery and Sweets, Nabil Foods, Atyab and BMB Group, which reflected on the group’s performance.

“We have made significant progress in H1 2022. In the first quarter, our focus was on the consolidation of acquired entities, and in the second quarter, we turned our attention towards accelerating synergy extraction and group integration," said Alan Smith, chief executive of Agthia Group.

Agthia recently announced a Dh90m investment in a manufacturing plant in Saudi Arabia to drive growth for its protein vertical and in response to strong demand from local customers.

Also, in July 2022, the company's board approved the acquisition of a strategic 60 per cent stake in Egypt-based Auf group, a specialised healthy snacks and coffee manufacturer and retailer.

“Recent milestones, including board approvals for expansion of our protein business in Saudi Arabia and the acquisition of Egypt-based Auf group will further support the realisation of our five-year strategy as we capitalise on our strengthening momentum in market,” said Mr Smith.

Agthia, which is owned by Abu Dhabi's state holding company ADQ, has been on an acquisition spree in an effort to become the biggest F&B company in the region by 2025.

The company's total assets reached Dh6.3bn as of June 30, while total shareholders’ equity for the period stood at Dh2.8bn.

In line with Agthia’s semi-annual dividend distribution policy, the company will distribute a cash dividend equivalent to 8.25 fils per share for the first half of 2022, subject to shareholder and regulatory approvals, the statement said.