Abu Dhabi-based food and beverages company Agthia Group said its nine-month net profit surged, boosted by acquisitions, cost optimisation measures and due to a one-off charge it booked last year.
Net income for the nine months to the end of September increased to Dh103 million ($28m), compared with about Dh10m in the same period last year, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded. Net revenue surged 34 per cent to Dh2.1 billion.
“Our growth has been skilfully supported by an institutionalised modular approach to integration of new units to our business,” said Khalifa Al Suwaidi, chairman of Agthia Group.
“We expect to see continued robust activity over the remaining months of the year, providing further opportunity for us to demonstrate the durability of our results and increased market leadership.”
The company swung to a net profit of Dh35m during the third quarter of this year, from a loss of Dh32m last year, owing to a Dh59m one-off charge it faced after an assessment of its books. Revenue rose 62 per cent to Dh795m during the period.
Agthia — which is part of one of the region’s largest holding companies, ADQ — manufactures, distributes and markets a range of food and beverage products, including popular regional brands such as Al Ain Water and Al Foah dates.
In April, the company announced a five-year strategy to become the biggest food and beverage company in the region by 2025. It has been on an acquisition spree in recent quarters, adding Kuwait’s Al Faysal Bakery and Sweets, Jorda’s Nabil Foods and the world’s largest date processing and packaging company, Al Foah, to its consumer business division.
In September, it completed the acquisition of a majority stake in Egypt-based meat processor Ismailia Investments, which produces frozen chicken and beef products.
“Our portfolio transformation and integration are fully on track and have helped us unlock cost synergies and productivity with Al Foah,” said Alan Smith, chief executive of Agthia Group.
We expect to see continued robust activity over the remaining months of the year
Khalifa Al Suwaidi,
chairman, Agthia Group
Agthia’s acquisitions this year have boosted the net revenue contribution of the company’s consumer business by almost 50 per cent annually to Dh1.4bn during the first nine months of 2021. It now accounts for 67 per cent of total revenue. The protein division contributed Dh373m to net revenue over the same period.
The company’s water and beverage category recorded slightly lower sales in the nine months to September 30, compared with the same period in the previous year, following the discontinuation of the beverages business in January this year.
Meanwhile, higher sales were recorded in the UAE bottled water category in both the second and third quarters of 2021 on the back of higher volumes in the food service channel after hotels and restaurants opened following the relaxation of movement curbs amid the pandemic, Agthia said.
Its bottled water portfolio — Al Ain Water, Al Bayan, Voss and Alpin — retained market shares of 26 per cent and 23 per cent, respectively, in the UAE market, it said.
On the snacking front, the business units recorded net revenue of Dh334m, it said.
Agthia’s agribusiness revenue decreased by 4 per cent over the nine-month period, compared with the previous year, largely driven by a one-time World Food Programme order and lower wheat trading.
The company’s total assets at the end of September climbed to Dh5.5bn, a 76 per cent rise on annual basis, after it consolidated Al Foah, Al Faysal Bakery and Nabil Foods during the first half of the year.
Shareholders approved Agthia board’s recommendation of 8.25 fils per share, equivalent to Dh65.3m for the first half of 2021.
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.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
FIXTURES (all times UAE)
Sunday
Brescia v Lazio (3.30pm)
SPAL v Verona (6pm)
Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)
Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
Juventus v Cagliari (6pm)
Atalanta v Parma (6pm)
Lecce v Udinese (9pm)
Napoli v Inter Milan (11.45pm)
FINAL RESULT
Sharjah Wanderers 20 Dubai Tigers 25 (After extra-time)
Wanderers
Tries: Gormley, Penalty
cons: Flaherty
Pens: Flaherty 2
Tigers
Tries: O’Donnell, Gibbons, Kelly
Cons: Caldwell 2
Pens: Caldwell, Cross
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
