Agthia's 2023 net profit jumps 10% on strong revenue

Abu Dhabi-listed company reported a net profit of $82 million

Agthia is transforming its operations under a five-year growth strategy. Khushnum Bhandari / The National

Agthia, an Abu Dhabi-based food and beverage company, reported a nearly 10 per cent surge in its 2023 fiscal net profit as strong growth in its snacking and water businesses drove revenue.

The company reported a group net profit of Dh299.6 million ($82 million) in the January-December period. Revenue during the period surged 12.1 per cent to Dh4.6 billion, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.

“Agthia’s continued strong performance, despite a challenging economic environment, demonstrates the company’s ability to reap the rewards from its value-accretive merger and acquisition activities, leverage synergies across the group, prioritise innovation across its product portfolio and optimise its operations to maintain profitability,” said Khalifa Al Suwaidi, the company’s group chairman.

Agthia, owned by Abu Dhabi's state holding company 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.

The company is transforming its operations under a five-year growth strategy to become the region's top food and beverage company by 2025, aiming for an annual revenue of Dh6 billion.

The company’s snacking revenue grew 38 per cent year on year in 2023, led by date products, while its water and food division’s revenue surged 6 per cent on an annual basis.

Its total assets stood at Dh6.6 billion as of December 31, with total shareholders’ equity of Dh2.9 billion.

The Abu Dhabi-based company has also made several acquisitions in the past few years to expand its business, including buying Kuwait’s Al Faysal Bakery and Sweets, Jordan’s Nabil Foods, Egypt-based meat processor Ismailia Investments, better known as Atyab, and snacks maker BMB Group.

In July, it launched a $54 million corporate venture capital fund that aims to expand its innovation capabilities and create mutual value with the start-up community.

In December 2022, it bought a majority stake in Egyptian snacks and coffee producer Auf Group for an undisclosed amount.

“I am positive that Agthia can consistently deliver on its strategy of acquiring, integrating, and growing attractive businesses in value-add categories, as we continue to pursue our ambition to become a leading food and beverage company in the MENAP region and beyond,” Alan Smith, Agthia’s chief executive, said in a statement on Wednesday.

Mr Smith told The National last year: “We will keep developing the pipeline.

“We continue to look for the right opportunity at the right price, in the right market and in the right category.”