Agthia continues to expand into new markets to boost growth

The company reports a 2% rise in third quarter revenue on portfolio diversification

Agthia, the Abu Dhabi food and beverage company that produces Al Ain water, reported a 2 per cent rise in its third-quarter revenue. Delores Johnson / The National

Agthia continues to expand into new markets and diversify its product portfolio to boost growth as the Abu Dhabi headquartered food and beverage company reported a 2 per cent risein its third-quarter revenue.

"Geographic expansion is part of our strategy and we will continue to expand in to other markets," Tariq Ahmed Al Wahedi, chief executive of Agthia group told The National. He declined to name the markets the company is planning to roll-out its business. Agthia currently operates in GCC countries, excluding Qatar, as well as Egypt, Turkey and Iraq.

"Our international business is growing in double digits and we continue to focus on that," Mr Al Wahedi added.

Agthia's revenue rise came despite challenging market conditions.

Revenues climbed to Dh486.1 million in the three months to the end of September, the company said in a statement to Abu Dhabi Securities Exchange, where its shares trade.

“Agthia was able to grow revenue and maintain leading market share despite challenging market conditions,” said Dhafer Ayed Al Ahbabi, Agthia group chairman.

“Our financial performance demonstrates the group’s resilience and commitment to enhancing and protecting shareholder value, by all means.”

Agthia’s water products portfolio, which includes Al Ain water, Al Bayan and Alpin brands, maintained their leading market share position by volume and value at 30 per cent and 28 per cent respectively. The food segment recorded a 26.2 per cent growth in net revenue, largely driven by ‘trading items’ and Egypt. The flour segment of the company's agriculture business grew its revenue by 14 per cent on expanded domestic retail penetration and exports, according to the company.

Net profit attributable to equity holders dipped to Dh33.1m in the third quarter, from Dh49.5m reported during the same period last year.

The company through a "disciplined response" was able to mitigate the impact of "unfavourable external factors" such as the loss bakery subsidy, higher commodity pricing and slower growth in the bottled water category in the UAE, on its profits, Mr Al Wahedi said.

The cost of sales climbed 5.5 per cent year-on-year to Dh326.7m during the third quarter. Selling and distribution expenses rose to Dh87m during the reporting, up from Dh79.3m recorded a year earlier.

In the nine-month period, the company’s revenue rose 4.3 per cent to Dh1.55 billion.

Total assets reached Dh3.1bn as of September 30, up 6.1 per cent compared to the same period in 2018, it added.