ABU DHABI, 2nd August, 2023 (WAM) -- Agthia Group PJSC today announced its results for the six months ending 30th June 2023. The Group delivered a strong performance during the first half - despite the currency headwind in Egypt and some demand phasing in Q2 from the earlier Ramadan and Eid holidays - with double-digit EBITDA growth 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.

Financial highlights

Group net revenue increased 10.3 percent year-on-year to AED 2.2 billion (3.6percent growth from pricing and 6.7percent 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 (AED -197 million), Group 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 AED 318.8 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 Snacking, strong pricing, favourable channel mix, and manufacturing efficiencies in our dates business was accompanied by double-digit EBITDA growth at BMB post channel and production optimisation in Saudi. 

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.  

Group net profit increased 6.6 percent year-on-year to AED 144 million, with the slower rate of growth relative to EBITDA reflecting the higher interest rate environment (interest costs + AED 34 million year-on-year) compared to the prior year.

Strong balance sheet: Agthia’s balance sheet remained robust with cash and equivalents of AED 0.6 billion post AED 579 million of debt prepaid in the year to date. The Group’s net debt to EBITDA ratio of 1.9x (net debt of AED 1.2 billion) was down from 2.3x as at December 2022.

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: “There is much to be proud of over the past six months, from innovative product launches into new, scalable markets and strengthening Agthia’s Board and Leadership Team, to launching a bespoke venture capital fund that will futureproof our research and development capabilities and offer additional avenues for profitable growth. 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.”