UAE food and beverage giant Agthia reported a strong performance for the first half of 2021, following a blitz of investments and cost optimisation strategies.
Net profit went up by 61 percent to 67.9 million dirhams ($18.5 million), while revenues grew 21 percent to 1.32 billion compared to the same period in 2020.
“Agthia’s H1 performance has been driven by acquisition synergies, acceleration of transformation and additional cost optimization,” said Alan Smith, CEO of Agthia Group.
The Group, whose products include bottled drinks, completed the acquisition of Nabil Foods last May, marking its first foray into the processed meat industry.
Earlier, it had acquired 100 percent stake in Al Faysal Bakery and Sweets, one of Kuwait’s leading industrial bakeries, and entered into a strategic deal with date processing and packaging firm Al Foah.
In a statement, the company said it is well positioned to harness regional growth opportunities with the recent consolidations of Al Foah, Al Faysal Bakery and Nabil Foods under its consumer business division (CBD).
“With the addition of the three acquisitions, net revenue contribution by CBD increased by 20 percent year on year to 65 percent with the agri-business division contributing the remaining 35 percent of the group’s revenue,” Agthia said.
As of June 30, 2021, the company’s total assets stood at 4.6 billion dirhams, up 46 percent from year-end 2020. Shareholders’ equity stood at 2.7 billion for the same period.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021