Abu Dhabi food and beverage company Agthia Group has reported a 13 per cent annual rise in its profit for the first quarter of this year, underpinned by its growing and diversified portfolio amid challenging economic scenarios.
Net profit attributable to equity holders for the three months ended March hit Dh92.3 million ($25.1 million), Agthia - which is part of investment company ADQ, said on Tuesday in a filing to the Abu Dhabi Securities Exchange, where its shares trade.
Revenue for the quarter grew nearly 4 per cent year on year to about Dh1.33 billion, while earnings before interest, taxes, depreciation and amortisation - a key metric of profitability - added 4.1 per cent to Dh193.3 million.
"In a complex regional context, we responded with agility, maintained uninterrupted supply, and continued to manage our operations with focus and consistency," said Salmeen Alameri, managing director and chief executive of Agthia.
"At the same time, the transformation actions underway across the group are beginning to translate more clearly into performance, supporting improved operating efficiency, stronger margin delivery and a more resilient earnings profile."
Water and food remained Agthia's main growth driver on the strength of its bottled water unit. Its protein and frozen arm also accelerated as the company's facility in Saudi Arabia entered the second phase of its operations, while e-commerce revenue jumped 22.5 per cent to contribute 7.2 per cent of underlying revenue.
Agthia's agri-business, meanwhile, received a boost through its participation in food security-related programmes in the UAE, which is a priority for the government.
“The first quarter reinforced the importance of resilience, discipline and long-term perspective in navigating a more complex operating environment," Agthia board chairman Khalifa Al Suwaidi said.
"Agthia’s performance reflects the strength of the group’s fundamentals, the relevance of its role in supporting the broader food security agenda, and the focus with which it continues to execute against its strategic priorities.”
Agthia has continued to expand its presence in the region, with overseas operations in Egypt, Jordan, Kuwait and Saudi Arabia, and serves 60 markets.
Among the group's most notable brands are Al Ain frozen food and water, Al Foah dates and Grand Mills Bakeries.
Shares of Agthia settled about 1.1 per cent higher at Dh3.62 at the ADX on Tuesday.
