The Abu Dhabi-headquartered F&B company continues to gain positive top-line momentum in food segment
Agthia Group, one of the region’s leading food and beverages companies, recently announced preliminary and unaudited results for the fiscal year ending 31 December 2019.
The Group posted US$ 37.3mn in net profit, as well as net revenues of US$ 545mn (AED 2.04bn). Agthia grew its revenues by 2% year-on-year on geographic expansion and product category diversification.
The consumer-business contribution to Agthia’s top-line increased to 56 percent versus 54 percent from the previous year. Agthia’s 5-gallon Home and Office Delivery (HOD) business in the UAE, Food segment along with international operations in the Kingdom of Saudi Arabia (KSA) and Kuwait drove the consumer business’s top-line growth.
On the local front, the company’s water portfolio consisting of UAE’s popular Al Ain Water, as well as Al Bayan, and Alpin retained market leadership with volume and value shares at 29 and 27 percent, respectively.
With regard to Agthia’s Agri-business, composed of Grand Mills Flour and Agrivita Animal Feed, the Flour business outperformed despite pulled out subsidy environment, as volumes recorded strong growth in export sales, retail penetration specifically in the Northern Emirates, as well as wheat trading.
“Agthia’s 2019 financial results are a testament to the company’s agility in the ability to maintain leading market share and grow revenues against headwinds. This is underscored by Agthia’s resilience and commitment to uphold and protect shareholder value,” commented Eng. Dhafer Ayed Al Ahbabi, Chairman, Agthia.
“Our success is also supported by the flour business beating the zero-subsidy competitive environment along with the vigorous performance in the food segment and international markets,” remarked Eng. Tariq Ahmed Al Wahedi, CEO, Agthia Group.
Agthia Group’s total assets stood at US$ 840mn (AED 3.1bn) as of 31 December 2019, increasing marginally compared to the same time last year.
