Agthia Group announces 61% increase in H1 2021 net profit

Khalifa Sultan Al Suwaidi, chairman of Agthia Group
Khalifa Sultan Al Suwaidi, chairman of Agthia Group

A Staff Reporter

Published: Tue 10 Aug 2021, 5:15 PM

Agthia Group has announced its H1 2021 financial results for the period ending June 30, 2021, recording a net profit of Dh67.9 million and total revenues of Dh1.32 billion, representing 61 per cent and 21 per cent year-on-year growth, respectively, compared to the same period in 2020.

The group remains well positioned to harness regional growth opportunities with the recent consolidations of Al Foah, Al Faysal Bakery & Sweets, and Nabil Foods under the Consumer Business Division (CBD). With the addition of the three acquisitions, net revenue contribution by CBD increased by 20 per cent y-o-y to 65 per cent with the agri-business division contributing the remaining 35 per cent of the group’s revenue.

Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said: “Agthia has delivered a solid financial performance in the first half of 2021, reflecting our strong resolve in the face of global economic disruption. As we enter the second half of the year, we look forward to delivering on our growth strategy to become an F&B leader in the MENAP region, while focusing on retaining our market leadership, financial resilience and delivering sustainable stakeholder value.”

Alan Smith, CEO of Agthia Group, said: “Agthia’s H1 performance has been driven by acquisition synergies, acceleration of transformation and additional cost optimization. We anticipate the momentum of this performance to continue over the coming months. The ability of our team to respond effectively to changing consumer behaviour and market dynamics, whilst focusing on effectively integrating our new businesses has been the cornerstone of this growth trajectory.”

The group’s consumer business division recorded Dh855 million in revenues. Q2 2021 also saw the water & beverage category return to growth vs the same period last year, driving H1 2021 revenue to Dh390 million, inspite of ongoing category pressure and discontinuation of the Capri Sun business last year. The group’s bottled water portfolio – Al Ain Water, Al Bayan, Voss and Alpin - sustained their market leadership in the UAE in both volume and value share at 27 per cent and 25 per cent, respectively.

The net revenue of the food segment, which includes tomato paste & frozen vegetables, bakery, dairy and trading items, increased by 12 per cent on the inclusion of Al Faysal Bakery & Sweets post consolidation towards the end of January 2021. Furthermore, Al Foah and Nabil Food together contributed Dh272.7 million to the top-line in the first half, despite the impact of seasonality and headwinds created by an oversupply of dates in KSA and the inclusion of Nabil Foods for only three months post consolidation in April 2021.

Within Agthia’s agri-business, revenues reached Dh463.5 million, lagging sales for the same period in 2020 which included a one-time World Food Program order.

The Group’s total assets as of June 30, 2021 stood at Dh4.6 billion, up 46 per cent versus year-end 2020 post consolidating the assets of Al Foah, Al Faysal Bakery and Nabil Foods during the period. Group shareholders’ equity stood at Dh2.7 billion for the same period, post issuing additional 191.6 million shares to complete Al Foah and Nabil Foods acquisitions.

In line with the semi-annual dividend distribution policy announced at the beginning of the year, Agthia Board of Directors has recommended a 8.25 fils dividends per share for the first half of 2021, subject to shareholders and regulatory approvals.

Agthia Group was also included in the Morgan Stanley Capital International (MSCI) Emerging Markets Small Cap Index effective as of close of May 27, 2021, after fulfilling all the listing conditions, which comprises of market capital, liquidity rates, and foreign inclusion factors, among others.

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