Agthia's third-quarter net profit surges 14%

Food and beverage company's net profit jumped to $11m in the three months to the end of September

Agthia manufactures, distributes and markets a range of food and beverage products, including popular regional brands such as Al Ain Water and Al Foah dates. Silvia Razgova / The National
Beta V.1.0 - Powered by automated translation

Abu Dhabi-based food and beverage company Agthia said third-quarter net profit surged more than 14 per cent on an annual basis on higher revenue.

Agthia's net profit attributable to the owners of the company jumped to nearly Dh40.5 million ($11m) in the three months to the end of September, from around Dh35m in the year-earlier period, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The company’s quarterly revenue jumped about 20 per cent to more than 953.5m.

For the nine months of 2022, Agthia reported a net profit of nearly Dh158.6m, up 53.5 per cent from the same period last year.

Company’s January-September period revenue grew 39.5 per cent on an annual basis to more than Dh2.9 billion, building on “successful consolidation and integration of recent acquisitions”, the company said.

Agthia’s strong third-quarter performance demonstrates its ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core, Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said.

“In conjunction with its clear strategic priorities, growing capabilities and strong executive team, I am confident that Agthia will continue to deliver value for all stakeholders in both the near and longer-term as it continues its transformative journey to a leading food and beverage company in the MENAP [Middle East, North Africa and Pakistan] region and beyond,” Mr Al Suwaidi said.

The company’s third-quarter earnings before interest, taxes, depreciation and amortisation increased 23 per cent year-on-year to Dh128m “notwithstanding significant upwards pressure on raw material costs in the period, a testament to both strong cost discipline and leveraging synergies across new verticals” Agthia said.

Its revenue from the protein and frozen food segment stood at Dh308m, up 39 per cent on a yearly basis. Whereas snacking revenue was Dh182m for the quarter, up 69 per cent.

Water and food revenue surged to Dh238m for the quarter, while the agri-business revenue reached Dh225m.

The group’s total assets were worth Dh6.6bn as of September 30, while total shareholders’ equity for the period stood at Dh2.8bn.

In line with Agthia’s semi-annual dividend distribution policy, a cash dividend equivalent to 8.25 fils per share for the first half of 2022 was disbursed post all subsequent approvals on October 1, the company said.

“Despite a challenging external backdrop, I am pleased to report another quarter of profitable growth, combining strong performance from recently acquired businesses and our enduring focus on efficiency generation,” Alan Smith, chief executive of Agthia Group, said.

Updated: November 09, 2022, 7:38 AM