Abu Dhabi-based food and beverage company Agthia Group reported a 14 per cent increase in its 2022 profit, as operating income and group revenue rose last year.
Net profit attributable to the company’s shareholders for the 12 months ended December reached Dh246.7 million ($67.17 million), the company said in a regulatory filing on Tuesday to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.
The company's net revenue jumped by more than a third annually to Dh4.07 billion on the back of strong growth in its snacking and protein verticals.
Operating income rose 39 per cent to Dh351 million, as the company scaled and diversified its operations to drive cost and production efficiencies, it said.
The 2022 results position the company to “deliver value for all stakeholders in both the near and longer term as it executes its strategy”, said Khalifa Al Suwaidi, chairman of Agthia Group.
“Agthia’s strong performance this past year, in a challenging external environment, clearly demonstrates the management’s ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core.”
Agthia, which is owned by Abu Dhabi's state holding company ADQ, has been on a deal-making spree with the aim of becoming the biggest food and beverage company in the region by 2025.
In December, the company completed the acquisition of a majority stake in Egypt's snacks and coffee producer, Auf Group. The deal to acquire a 60 per cent Auf stake for an undisclosed amount was first announced in July.
Last May, Agthia also announced its expansion into Saudi Arabia with a greenfield investment worth Dh90 million that will be used to set up a manufacturing unit in the kingdom.
“Our strategy to acquire, integrate and grow attractive businesses in value-add categories continues to bear fruit … we are far bigger, more efficient and have greater capabilities than ever before,” said Alan Smith, chief executive of Agthia Group.
The company's balance sheet remained strong, with total assets of Dh6.8 billion at the end of 2022.
Agthia's protein and frozen unit, which accounted for 28 per cent of 2022 revenue, performed strongly in Egypt and Jordan despite inflationary pressures, the company said.
In Egypt, Agthia's brands withstood the devaluation of the pound, with robust pricing and “good” volume growth across its operations there.
The company's snacking segment, which accounted for 23 per cent of total revenue, also posted growth on the back of successful new product launches and strong demand from new international markets.
In its bottled water business, Agthia — which carries the brands Al Ain Water, Al Bayan, Voss and Alpin — posted record levels of new customer acquisitions, particularly in its five-gallon business, as it enacted initiatives to raise brand awareness, the company statement said.
Revenue in Agthia's agribusiness grew in the high-single digits, driven by strong volume growth in its core flour categories.