Agthia posts 1.1% rise in annual revenue

Company's total assets stood at Dh3.1 billion as of December 31

Agthia, which operates the Al Ain water brand, said the group's 2020 net revenue rose 1.1 per cent year-on-year. Sammy Dallal / The National

Abu Dhabi-based food and beverage company Agthia Group said net revenue rose 1.1 per cent in 2020, despite headwinds, driven by growth in key segments within its consumer business.

Net revenue for the 12 months to December increased to Dh2.06 billion, compared with Dh2.03bn in 2019, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares trade.

The consumer business contributed 55 per cent to Agthia’s top-line, it said. Revenue was driven by growth in key categories including the flour business, five-gallon home and office delivery (HOD) bottled water business in the UAE and the food segment in UAE, Egypt and Kuwait.

"Agthia has seen good momentum in the food and five-gallon HOD business segments on growing volumes and cost efficiencies," Alan Smith, chief executive of Agthia Group, said. "The group’s success has also been complemented by enhanced agri-business margins, particularly the flour business which beat estimates with strong growth in local and regional markets."

However, the company's full-year net profit fell to Dh34.5 million in 2020, compared with Dh137m in 2019.

A one-off charge of Dh82m in the third quarter taken following a strategic review aimed at boosting earnings quality weighed down earnings, Mr Smith said.

Agthia Group’s total assets stood at Dh3.1bn by year end, while total shareholder’s equity stood at Dh1.9bn.

In January, Agthia completed its transaction to buy Kuwait's Al Faysal Bakery and Sweets.

Last year, the company appointed a new board and a chief executive and completed its merger with date processing firm Al Foah.

"2020 caps another successful year for Agthia in terms of delivering on our strategic priorities and further growth of the group, despite headwinds," Khalifa Al Suwaidi, chairman of Agthia Group, said.

"The group demonstrated great agility and resilience while navigating the pandemic this past year to uphold and safeguard shareholder value."

Agthia is part of Abu Dhabi holding company ADQ.