Acquisitions result in 86% profit increase at Abu Dhabi food and beverage group Agthia

Abu Dhabi food and beverage group Agthia reported a 86 per cent increase in first-quarter profit after the addition of the Al Foah dates and the Al Faysal bakery and sweets businesses.

Net profit to shareholders grew to Dh49.6 million ($13.5m) for the first quarter, up from Dh26.6m in the same period last year. Revenue rose by 17 per cent to Dh665.5m, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

“With the company’s strong fundamentals, we were able to leverage the opportunities we had to deliver exceptional results for the first quarter of this year,” said chairman Khalifa Al Suwaidi.

“Motivated by this success, we take to the future with great confidence and are strengthening our protein and Egypt business with a new strategic acquisition in Ismailia Investments. This is in continuation of the group’s pursuit to becoming an F&B leader in our region and beyond as part of our recently announced 2025 strategic plan.”

Agthia is a food and beverage business majority owned by industrial holding company Senaat, which is itself owned by state holding company ADQ. It employs more than 4,000 people. The group produces bottled water brands Al Ain, Bayan and Alpin, and operates the Grand Mills bakery line and the Agrivita animal feed unit.

Agthia’s acquisition of Al Foah, which was completed in January this year, added Dh137m to the company’s top line during the quarter.

Although its share base expanded as a result of the acquisition, earnings per share for the quarter still grew by 57 per cent on the previous year, Agthia said.

Last month, the company’s shareholders approved a cash dividend of 16.5 per cent, a 10 per cent increase on the previous year and equating to a total dividend of Dh118.8m.

“Our agile reaction and robust performance enabled us to achieve an exceptional expansion in our consumer segment, led by positive contributions from Al Foah and Al Faysal Bakery & Sweets,” said chief executive Alan Smith.

“All indications are pointing towards improving overall business conditions for the rest of the year. We remain optimistic but cautious, in light of the seasonality in some of our businesses, reduced tourism in the region and continued lockdowns in some of our key markets.”

Agthia’s acquisition of Al Foah, which was completed in January, added Dh137m to the company’s top line