Agthia Group PJSC, a leading food and beverage company, released its financial results for the first half of 2023. Despite facing challenges such as currency headwinds in Egypt and demand fluctuations due to earlier Ramadan and Eid holidays, the Group achieved double-digit EBITDA growth, demonstrating strong profitability in the Snacking and Water segments, effective profit protection measures in Egypt, and efficient production and distribution practices.
Key Financial Highlights:
- Group net revenue increased by 10.3 percent year-on-year to AED 2.2 billion, driven by a 3.6 percent growth from pricing and 6.7 percent from volume. The growth was supported by a robust performance in dates, Flour, Food Portfolio, and international Water segments, counteracting adverse impacts from currency devaluation in Egypt and competitive markets in Jordan and Saudi Protein.
- Adjusting for the impact of currency devaluation in Egypt, Group net revenue surged by 20 percent year-on-year. Snacking and Agri segments reported 45 percent and 12 percent growth, respectively, while Protein and Frozen grew by 21 percent excluding currency impact. Water and Food segments achieved a growth of 6 percent.
- EBITDA increased by 18.3 percent year-on-year to AED 318.8 million, showing strong growth across Snacking and Water segments. The Group’s focus on profit protection in Egypt and cost efficiencies contributed to the positive outcome.
- Group net profit rose by 6.6 percent year-on-year to AED 144 million, driven by a higher interest rate environment compared to the previous year.
Agthia Group maintains a strong balance sheet with AED 0.6 billion in cash and equivalents after prepaying AED 579 million of debt this year. The net debt to EBITDA ratio decreased from 2.3x as of December 2022 to 1.9x.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, expressed confidence in the management’s ability to create value and consolidate businesses, positioning the Group as a leading food and beverage company in the MENA region and beyond.
Alan Smith, Group Chief Executive Officer, highlighted the successful product launches, enhanced leadership team, and venture capital fund for research and development, setting the stage for sustainable growth amid economic challenges characterized by inflation and currency volatility. Smith praised the dedication and support of all colleagues in achieving a strong performance in the first half of the year.
