ABU DHABI - Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced its first quarter results for the three months ending 31 March 2023.
The group's net profit1 increased 6.5% year-on-year to AED 97 million, with net profit margin down 44bps reflecting higher interest costs year-on-year (net profit / margin impact of AED -20 million / -168bps) and currency devalation in Egypt (AED -11million / -97bps).
Its net revenue increased 12.3% year-on-year to AED1.18 billion, with 6% from pricing and 6% volume growth, as increasing diversification by brand and geography enabled Agthia to optimiSe product and channel mix through the quarter. Group revenue growth, excluding the adverse currency headwind in Egypt, was 22.9% year-on-year.
Like-for-like (LFL) revenue growth, including Abu Auf in the prior comparable period, was +4.5% year-on-year in AED terms or + 20.3% year-on-year excluding the impact of EGP devaluation, with double-digit growth from Agri and Snacking, 24% growth from Protein excluding currency impact, and mid single-digit growth from Water & Food.
EBITDA growth was ahead of revenue, up 18.9% year-on-year to AED 188 million or +31.7% year-on-year excluding the impact of EGP devaluation, and was driven by strong growth in Snacking and Water profitability, as well as scale economies across production and distribution and continued cost discipline.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented: “Agthia’s continuing momentum in the first quarter of this year, notwithstanding a challenging external environment, is testament to its progressive leadership and seamless execution of its strategy to become a leading food and beverage company in the MENAP region and beyond. I am confident that Agthia will continue to create value for all stakeholders in both the near and longer-term as it continues its journey”.
Alan Smith, Group Chief Executive Officer, commented: “Strong and profitable growth in our first quarter across both legacy and acquired businesses, despite continuining inflationary and FX headwinds, is a result of the tireless efforts and agility of all our colleagues across the Group. I am very proud of the progress we are making and, on behalf of Agthia’s leadership team, would like to express my sincere thanks for their continued support and dedication. We continue to remain focused and agile in our execution, and I remain confident in the long-term growth trajectory of our business”.