Abu Dhabi's Agthia Q1 profit surges 64% on strong sales

Quarter was first time performance of all five acquisitions made last year was consolidated and reflected on group’s financial statements

Agthia's net profit attributable to shareholders jumped to more than $22.3 in the quarter that ended on March 31.​ Delores Johnson / The National

Abu Dhabi-based food and beverage company Agthia said its first-quarter net profit jumped almost 64 per cent on an annual basis as the company’s quarterly sales surpassed Dh1 billion ($272.3 million) for the first time.

Agthia's net profit attributable to shareholders rose to more than Dh82m in the three months to the end of March, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Its revenue reached more than Dh1.05bn, a rise of nearly 58 per cent year-on-year.

The quarter was the first time the performance of all five acquisitions made throughout the past year — Al Foah, Al Faysal Bakery and Sweets, Nabil Foods, Atyab and BMB Group — was consolidated and reflected on the group’s financial statements.

“Agthia’s first-quarter results for 2022 are indicative of the hard work throughout the previous year to acquire and consolidate value-accretive brands that complement our existing portfolio of companies,” said Khalifa Al Suwaidi, chairman of Agthia Group.

“The group’s impactful start to the year demonstrates we are now well-positioned to begin reaping the fruits of our labour … this achievement is just the beginning of our mission to build a more holistic, efficient and integrated business model.”

Agthia, which is owned by Abu Dhabi's state holding company ADQ, has been on a deal-making spree in an effort to become the biggest food and beverage company in the region by 2025.

Total assets reached Dh6.6bn as of March 31, while total shareholders’ equity for the period stood at Dh2.8bn.

Last month, Agthia's board of directors approved a cash dividend of more than Dh0.08 per share for the second half of 2021. Total dividends distributed for the year stood at Dh130.6m, an increase of almost 10 per cent from Dh118.8m in 2020.

“Despite the ongoing fluidity of market conditions and a challenging global inflationary environment, we are steadfast in continuing Agthia’s journey of transformation,” said Alan Smith, chief executive of Agthia.

“Our first-quarter results are proof of our conviction in the M&A [merger and acquisition] activities conducted last year through the generation of healthy growth to our top-line revenue across all our verticals.”