Abu Dhabi, UAE - Agthia Group PJSC, one of the region’s leading food and beverages companies, today announced its Q1 2020 financial results for the period ending 31st March 2020. The Group recorded total revenues of AED 571 million, representing a 12% year-on-year growth compared to the same period in 2019, as well as net profits of AED 27 million.
The Group’s Agri-business recorded AED 273 million in revenues, an increase of 21% year-on-year. The flour segment not only retained its market leading position across retail channels, but also achieved significant top-line growth of 52% to AED 154 million versus last year. This was mainly driven by strong domestic demand, increase in export sales, including a one-off order from the World Food Program, and higher wheat trading.
Within Agthia’s Consumer-business, revenues reached AED 298 million, a 6% year-on-year increase, where the food segment net revenues increased by 21% driven by trading items, as well as tomato paste & frozen foods in both UAE and Egypt, as consumers responded to the current pandemic situation. Additionally, the Water & Beverage category revenues reached AED 216 million. In the UAE, Agthia’s 5-gallon home and office distribution (HOD) business grew its top-line by 8% year-on-year, while the bottled water portfolio sustained its strong market leadership in both volume and value share at 29% and 26% respectively.
H.E. Khalifa Sultan Al Suwaidi, Chief Investment Officer at ADQ and Chairman of Agthia, said, “As we look ahead to further improve efficiency across the F&B sector, Agthia’s Q1 2020 financial results demonstrate the company’s robust and strategic response to the current challenging market conditions. Our agile supply chain and tried and tested business continuity strategy have also supported these strong results. It is even more important at times like these for us to reaffirm our commitment to align with the vision of the government and promote the wellbeing of people through our nutritious products.”
H.E. Eng. Jamal Salem Al Dhaheri, Acting Chief Executive Officer of Agthia, said, “We continue to produce positive results in core segments such as food and flour, as well as a dominant lead in market share across key categories such as water. This was the result of a number of factors, not least the implementation of our strategic business continuity plans, and a concerted programme of ensuring that all our Consumer Support Division (CSD) outlets have plentiful stocks of staple food and beverage products.”
Al Dhaheri added “We also carried out the successful launch of our online application “1971” embracing all our CSD product range, which speaks to the Group’s agility during such challenging times to enable our consumers to order our products from the comfort of their own homes. We have also increased stocks of food and beverages products and expanded home delivery service to better serve the community.”
Agthia Group entered 2020 with a continued focus on sustainability by launching the region’s first 100% plant-based water bottle, the Al Ain Plant Bottle. This was accompanied by a programme to introduce PET collection and recycling in partnership with Veolia, a global leader in optimized resource management.
The announcement of Agthia’s Q1 2020 results follows the conclusion of the company’s 15th Annual General Meeting held on April 16 virtually over video conference in Abu Dhabi, where shareholders approved a cash dividend of 15 percent for an amount of AED 90 million and elected new board members for the coming term.
© Press Release 2020
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