• Agthia continues to sustain market leadership across core categories
  • Flour business outperforms on higher domestic volume, export sales and wheat trading
  • Positive top-line momentum in food segment, 5-gallon HOD business and Kuwait operations

Abu Dhabi - Agthia Group PJSC, one of the region’s leading food and beverages companies, today announced H1 2020 financial results for the period ending 30 June 2020. The Group posted AED 42 million in net profit, as well as net revenues of AED 1.09 billion.

Reinforced by the Group’s resilience and agility navigating challenges imposed by the COVID-19 pandemic, along with the new technological innovations launched to serve the community, the company grew revenues 2.6 percent over the same period last year and sustained market leadership across core categories.

In the UAE, the Group’s distinguished water portfolio, Al Ain Water, Al Bayan, and Alpin, preserved a leading market position in the retail channel with respective volume and value shares at 29.1 and 26.1 percent. Notably, Al Ain Water, Agthia’s flagship brand, ranked number one most chosen beverage brand in the UAE and number six most chosen FMCG brand as per Kantar’s Brand Footprint Ranking 2020. Our 5-gallon home and office distribution (HOD) business, grew by 8 percent year-on-year on elevated demand particularly from homes.

The Group’s Food category also demonstrated strong growth with net revenue up by 27 percent driven by boosted demand for Trading Items and TP&FV in both UAE and Egypt in response to COVID-19.

The Flour segment in the Agri business recorded AED 265 million in revenue, a 29 percent growth in top-line versus last year on higher domestic volume, export sales and wheat trading. In contrast, Animal Feed revenues lagged 7 percent behind last year on lower grain sales and lessened local demand amid new controls to restrict commercial farms from trading subsidized animal feed in the open market.

H.E. Khalifa Sultan Al Suwaidi, Chairman of Agthia Group and Chief Investment Officer at ADQ, said: “As a regional leader, Agthia responded quickly to address the current market challenges by applying cost-cutting initiatives and re-allocating resources. With the company’s recent appointment of a new board and its robust balance sheet, Agthia is set to embark on its next chapter while maintaining its unwavering commitment to grow shareholder value.”

Alan Smith, Agthia Group CEO, said: “In the face of challenges brought on by the COVID-19 pandemic, we have been quick to reprioritize resources across the Group’s flexible supply chain to ensure business continuity and product availability at the right cost. This has resulted in positive revenue growth for Agthia and sustained market leadership in core categories. Agthia continues to showcase its strength in the water segment in the UAE despite headwinds in some key channels and demonstrated exceptional agility to achieve growth in volumes of our 5-gallon HOD business. Our performance was also bolstered by strong growth in the flour business and a remarkable performance in the food segment.”

Smith added, “Furthermore, we continued to stand by the consumer trust and loyalty in our brands as we increased security stocks of essential F&B products, accelerated our e-commerce presence, doubled the number of trucks for home delivery to cater to consumer needs whilst adhering to the highest standards of quality and safety. Agthia’s success is further underscored by our enhanced agri-business profitability and cost optimization.”

Agthia Group’s total assets stood at AED 3.2 billion as of 30 June 2020, increasing 3.4 percent versus year-end 2019 in tandem with the upsurge in cash balance and higher receivables following the sales tilt towards Modern Trade channel.

The Company’s audited Financial Statements along with the Directors’ Report are available at the Company’s website www.agthia.com and at www.adx.ae

-Ends-

About Agthia 

Agthia Group is a leading Abu Dhabi based food and beverage company. Established in 2004, the Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “AGTHIA”. Through Senaat, the Agthia Group is part of ADQ, one of the region’s largest holding companies with a diverse portfolio of major enterprises spanning key sectors of Abu Dhabi’s non-oil economy.

The Company’s assets are located in the UAE, Saudi Arabia, Kuwait, Oman, Egypt and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East. More than 4,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products: Water (Al Ain, Al Bayan, Alpin Natural Spring Water, Bambini); Flour (Grand Mills); Animal Feed (Agrivita); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait); Processed Food (Al Ain Tomato Paste, Frozen Vegetable); Ambient and Frozen Bakery (Grand Mills). For more information: www.agthia.com | corpcoms@agthia.com | Tel: 971 2 506 0600.

Media Inquiries:
Mia Khalil
Mia.khalil@havasprme.com 

Georges Geagea
Georges.geagea@havasprme.com  

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2020

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.