Abu Dhabi, UAE— Agthia Group’s net profit increased 6.6 percent year-on-year to $39.21 million in the first half of 2023.
Its net revenue increased 10.3 percent year-on-year to $600 million (3.6 percent growth from pricing and 6.7 percent from volume) reflecting a strong volume and value performance from dates, underpinned by premiumisation and innovation, and good growth in Flour, our Food Portfolio, and international Water, which cushioned the adverse impact of currency devaluation in Egypt, price-elasticity in Saudi Protein and a more promotional and competitive landscape in Jordan.
Adjusting for the impact on revenue of currency devaluation in Egypt ($54 million), its net revenue increased +20 percent year-on-year, with growth of 45 percent and 12 percent respectively from the Snacking and Agri segments, 21 percent growth from Protein and Frozen excluding currency impact, and 6percent growth from Water and Food. LFL revenue, including Abu Auf in the prior comparable period, increased 3.1percent year-on-year in AED terms.
EBITDA growth was ahead of revenue, up 18.3 percent year-on-year to $87 million (+31percent excluding currency headwind), reflecting strong growth in profitability across snacking and water, a laser focus on profit protection in Egypt, as well as further group-wide production and distribution economies.
In water and food, strong growth across the international footprint, as well as cost efficiencies in Saudi and UAE water countered a lower margin mix and commodity inflation in the agri-business.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented: “Agthia’s results for the first six months of the year further demonstrate the management’s ability to successfully consolidate value-accretive businesses and leverage synergies while maintaining a profitable core, across all economic cycles. I am confident that Agthia will continue to create value for all stakeholders as it progresses its strategy to become a leading food and beverage company in the MENA region and beyond.”
Alan Smith, Group Chief Executive Officer, commented: “The efficiencies we continue to generate across our portfolio are enabling us to accelerate investment in capacity, sustainability, and digital excellence, while maintaining a robust balance sheet. An economic backdrop characterized by inflationary headwinds and currency volatility has required us to remain disciplined and agile in our execution, and I am grateful for the continued support and dedication of all our colleagues across the Group in achieving this strong first half performance.”