Flour and water combined to generate extra dough for Agthia in the third quarter, even as profits fell short of analysts’ forecasts.
The Abu Dhabi-listed company, known for its Al Ain bottled water and Grand Mills flour, yesterday morning reported a 17 per cent rise in profits to Dh54.2 million for the three months to the end of September.
That was below an average estimate of Dh66.7m in quarterly profit from five analysts polled by Bloomberg.
The shares gained 3.9 per cent to close at Dh7.65 a piece.
“We have seen our core businesses continue to grow year on year, with water and beverages and flour categories in particular driving the results,” said the chief executive Iqbal Hamzah.
“Our business and financial position is strong and we have the right strategy in place to remain on our growth trajectory, creating value to our shareholders.”
Agthia’s water and beverages segment, dominated by Al Ain bottled water, saw net revenues increase 24 per cent to Dh457m during the first nine months of the year. The net profit for the segment rose 30 per cent to Dh80m.
The company attributed the gains to expanded distribution of Al Ain, especially across the Northern Emirates, together with price increases in the retail sector.
This month, Agthia bolstered its position in the bottled water market, agreeing to buy Al Bayan Purification and Bottled Water, Shaklan Plastic Manufacturing and Al Manal Purification and Bottling Mineral Water.
The company, however, did not disclose the purchase price.
Flour sales were the highlight of its agribusiness segment, with sales rising by 6 per cent and profits increasing 14 per cent during the nine months up to September. Revenues from Grand Mills flour increased 9 per cent during the nine-month period, with profits up 19 per cent.
jeverington@thenational.ae
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
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