Regional F&B growth, portfolio diversification boost Agthia's prospects
Agthia Group PJSC, headquartered in Abu Dhabi, is a prominent food and beverage company operating across the Middle East, North Africa and beyond. The company's diverse portfolio includes products such as water, flour, animal feed, dairy and processed foods, catering to both regional and international markets.
Launched in 2004, the company was listed on the Abu Dhabi Securities Exchange (ADX) in 2005. It is majority owned by General Holding Corporation, or Senaat, which is part of the Abu Dhabi Development Holding Company (ADQ).
The company's operations are divided into two main divisions. The Agri Business Division focuses on the production and distribution of essential staples like flour and animal feed, supporting both local and regional agricultural sectors. The Consumer Business Division spans multiple industries, including the manufacture and distribution of bottled drinking water, water-based drinks and juices. In the food segment, the company produces a diverse range of products, from tomato and chili paste to fruit concentrates, frozen vegetables, fresh dairy products and frozen baked goods.
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With assets spread across the UAE, Oman, Egypt and Turkey, Agthia's reach extends far beyond its home market, supplying products to customers throughout the GCC, Turkey, the wider Middle East and international markets.
Its international portfolio of integrated businesses provides high-quality and trusted food and beverage products, including 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, Al Ain Frozen Vegetables) and fresh and frozen baked goods (Grand Mills).
Strategic growth drivers
Investment analysis
Agthia reported revenues of AED4.91 billion in its fiscal year 2024, marking a 7.75% increase from the previous year's AED4.56 billion. Net profit for the same period rose to AED322 million, compared to AED300 million.
The consistent growth underscores Agthia's robust market position and effective operational strategies.
Growth prospects
The UAE and the wider region's rising population growth, consumer preference for high-quality and healthy foods, and a strong government focus on food security are fuelling Agthia's growth. The company benefits from strong government support and is looking to expand its business in the key markets of Saudi Arabia and Egypt, among others. In addition, it enjoys strong growth potential in its home market of the UAE.
In 2024, it expanded its regional footprint with the launch of a state-of-the-art protein manufacturing facility built at an investment of AED90 million in Jeddah Industrial City 1. It also raised its stake in Abu Auf Group, an Egyptian healthy snacks and coffee brand, to 80% to take advantage of the country's strong economic and population growth.
This forms part of a strategy to diversify its revenue portfolio, extend its footprint in the MENA region and beyond, and develop value-added food and beverage brands. The company has set external guidance to raise revenues to AED 6 billion by the end of 2025, compared to AED 4.9 billion in 2024, and improve its net profit margin to between 8.5% and 10% in 2025. The company aims to accomplish this by bolstering its core base, including strengthening the water business, building up flour and feed, expanding geographical reach, and shifting the portfolio mix towards higher-margin categories.
Relative valuation
Agthia Group currently has a Relative Valuation Rating of 9, significantly above the FTSE ADX General index average rating of 5.9.
The company's current price-to-sales ratio, trailing price-to-earning (P/E) ratio and forward PE multiples are all currently at or near their five-year lows.
Based on price-to-sales, Agthia currently trades at a 6% discount to its Food & Tobacco industry group peers. On average, the company has traded at a 42% discount over the past five years.
Based on trailing P/E, Agthia currently trades at a 0.6% premium to its Food & Tobacco industry group peers. On average, the company has traded at a 0.3% premium over the past five years.
Based on forward P/E, Agthia currently trades at a 9% discount to its Food & Tobacco industry group peers. On average, the company has traded at a 38% discount over the past five years.
Fiscal position
Agthia maintains a solid fiscal position, with total assets amounting to AED6.6 billion as of December 31, 2024. The company's equity attributable to shareholders stands at AED2.9 billion, indicating a strong equity base. This financial stability positions Agthia well for future investments and expansion initiatives.
Return on equity
For the year ending December 31, 2024, Agthia's return on equity was approximately 10.2%, reflecting the company's efficient utilisation of shareholder funds to generate profits.
According to analysts, Agthia demonstrates strong financial performance, promising share growth potential, a solid fiscal foundation and a respectable return on equity.
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Group Net Revenue at AED 1.3 billion; underlying growth of 5.2% YoY Group EBITDA at AED 185.7 million; with EBITDA Margin of 14.5% Net Profit at AED 86.1 million; Net Profit Margin at 6.7% The dates business continues to face lingering challenges from the 2024 harvest, with proactive efforts underway to mitigate the impact Abu Dhabi, UAE – Agthia Group PJSC ('Agthia' or 'the Group'), one of the region's leading food and beverage companies, today announced its financial results for the three-month period ending 31 March 2025. The Group reported AED 1.3 billion in revenue for Q1 2025, reflecting a year-on-year decline of 11.4%, with the quarter lapping the one-time wheat trading activity (AED 120 million), the significant devaluation of the Egyptian currency (EGP) in March 2024, and the carryover of the short-term operational challenges in the dates business. 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To strengthen ESG governance and transparency, Agthia launched a Smart ESG Platform integrating over 150 KPIs, enabling real-time audits and streamlined reporting across the business. Alan Smith, Group Chief Executive Officer of Agthia Group, commented: 'Over the course of the past two decades, our ability to navigate a dynamic operating environment has been tested multiple times. We have the utmost confidence in the resilience of our business and our ability to withstand short-term pressures in some segments, and while we acknowledge the short-term pressures in select segments, we are not defined by them. What stands out this quarter is the continued strength in Water and Agri-Business, the operational momentum across our diversified portfolio, and the solid groundwork we're laying for the future. We are focused on disciplined execution, integrating recent acquisitions, and accelerating synergies that drive long-term value creation. Our increased ownership in Abu Auf and the acquisition of Riviere are testament to our commitment to reinforcing leadership in high-potential verticals. Agthia is in a strong position to deliver sustainable, profitable growth and continued value for all our stakeholders.' Agthia ended the quarter with a Net Debt-to-EBITDA ratio of 2.4x and AED 321 million in cash and equivalents - maintaining a strong financial position that supports continued investment in strategic priorities and growth opportunities. The Group's Q1 2025 financial results are available at and on the Abu Dhabi Securities Exchange ( About Agthia Agthia Group PJSC (ADX: AGTHIA) is one of the region's leading food and beverage companies headquartered in Abu Dhabi and part of ADQ, one of the largest holding companies in the Middle East. Established in 2004, Agthia has evolved into a diversified, multi-category F&B leader with a strong regional footprint across the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey, and Jordan. The Group's integrated portfolio includes market-leading brands across four key categories: Water & Food (Al Ain Water, Al Bayan, VOSS, Alpin, SunRice, Campa Cola), Snacking (Al Foah, BMB, Abu Auf, Al Faysal Bakery & Sweets), Protein and Frozen (Nabil Foods, Atyab, Al Ain Frozen Vegetables), and Agri-Business (Grand Mills, Agrivita). With more than 12,000 employees across its operations, Agthia's products reach consumers in over 60 markets worldwide.
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Group EBITDA declined 20.2% year-on-year to AED 185.7 million, with a margin of 14.5%, reflecting ongoing pressures in specific categories. Net Profit for the quarter stood at AED 86.1 million, with a margin of 6.7%. Profitability was also impacted by the implementation of the Pillar II corporate tax in the UAE, which raised the Group's effective tax rate to 19.3%, up from 13.5% in the same period last year. Performance by Segment: Water & Food: Revenue increased by 10.6% year-on-year, driven by strong growth in bottled water and Home and Office Services (HOS) across the UAE, Turkey, and KSA. Al Ain Water continued to cement its market leadership, securing high-profile B2B contracts including Marriott Group UAE. Segment EBITDA grew 17.6%, supported by SG&A efficiencies and resulting in a 104bps margin expansion to 17.5%. Agri-Business: Reported revenue declined year-on-year, reflecting the absence of wheat trading activity recorded in Q1 2024. Excluding the trading activity, the segment delivered 2.9% revenue growth. Agri-Business EBITDA increased by 16.1%, with a margin expansion of 708bps, supported by favorable commodity dynamics and disciplined cost control. Snacking: Revenue declined 8.2% year-on-year, mainly due to lower sales in the Dates business. Dates business profitability was impacted by the sale of specific excess inventory at reduced prices. Whilst the global dates market remains robust, Agthia continues to reset the business in preparation for the 2025 harvest season. These challenges will persist through Q2 2025. Abu Auf also faced margin pressure due to higher coffee input costs, while BMB delivered strong double-digit EBITDA growth on the back of revenue momentum and cost optimization, reflecting the value of a diversified snacking portfolio. Protein & Frozen: Revenue declined 15.7% year-on-year, impacted by continued softness in Egypt and lower exports from Jordan. Segment EBITDA Margin was impacted by higher raw material costs at Nabil and Al Ain Egypt, as well as by temporary fixed-cost pressure during the ramp-up at the new KSA facility. However, Atyab delivered a 158bps improvement in EBITDA margin, reflecting strong operational execution. With Phase II of the KSA facility underway, performance is expected to improve as the project completes in the beginning of 2026. During the quarter, Agthia increased its stake in Abu Auf from 70% to 80%, deepening integration within the Snacking segment and underscoring the Group's strong belief in its long-term growth potential. The move reflects Agthia's continued focus on scaling high-opportunity categories aligned with evolving consumer trends. In parallel, the Group's Board approved the acquisition of Riviere, a leading bottled water HOS player in the UAE, further expanding Agthia's direct-to-consumer footprint and strengthening its leadership in the Water category. Innovation remains a key driver of Agthia's growth and transformation journey, contributing AED 45 million to Q1 2025 performance. Led by its Central Innovation Team, Agthia continues to foster collaboration across business units. In Snacking, Abu Auf introduced espresso-machine capsules and expanded its snacking portfolio with new chocolate varieties, while Zadina launched date-sweetened pistachio kunafa chocolate and premium kunafa stuffed dates and wafers. In Water & Food, Al Ain Water revamped its premium glass packaging to elevate shelf presence and appeal. In Protein & Frozen, Atyab relaunched a range of cold cuts range, with 2 new SKUs introduced, aiming to boost supermarket visibility and support overall range. Meanwhile, Meatland re-launched its Luncheon range with a refreshed packaging design and more competitive pricing to drive growth in the Tier-2 Luncheon segment. Agthia also advanced its digital transformation efforts in Q1 2025, enhancing both customer experience and operational efficiency, driving a 18.7% surge in e-commerce revenue, now representing 5.6% of total Group revenue. Agthia continued to advance its sustainability roadmap in Q1 2025, achieving an 8.5% reduction in absolute water consumption. The Group partnered with the Authority of Social Contribution - Ma'an and Khubza Bakery on the 'A Million Pieces of Bread' initiative during Ramadan, as part of the UAE's Year of Community campaign. It also earned Gold recognition as Sustainable Brand Owner of the Year 2025 for its 100% recyclable monolayer flexible packaging for 'Freakin' Wholesome roasted walnuts stuffed dates pouch'. To strengthen ESG governance and transparency, Agthia launched a Smart ESG Platform integrating over 150 KPIs, enabling real-time audits and streamlined reporting across the business. Alan Smith, Group Chief Executive Officer of Agthia Group, commented: 'Over the course of the past two decades, our ability to navigate a dynamic operating environment has been tested multiple times. We have the utmost confidence in the resilience of our business and our ability to withstand short-term pressures in some segments, and while we acknowledge the short-term pressures in select segments, we are not defined by them. What stands out this quarter is the continued strength in Water and Agri-Business, the operational momentum across our diversified portfolio, and the solid groundwork we're laying for the future. We are focused on disciplined execution, integrating recent acquisitions, and accelerating synergies that drive long-term value creation. Our increased ownership in Abu Auf and the acquisition of Riviere are testament to our commitment to reinforcing leadership in high-potential verticals. Agthia is in a strong position to deliver sustainable, profitable growth and continued value for all our stakeholders.' Agthia ended the quarter with a Net Debt-to-EBITDA ratio of 2.4x and AED 321 million in cash and equivalents - maintaining a strong financial position that supports continued investment in strategic priorities and growth opportunities. The Group's Q1 2025 financial results are available at and on the Abu Dhabi Securities Exchange ( About Agthia Agthia Group PJSC (ADX: AGTHIA) is one of the region's leading food and beverage companies headquartered in Abu Dhabi and part of ADQ, one of the largest holding companies in the Middle East. Established in 2004, Agthia has evolved into a diversified, multi-category F&B leader with a strong regional footprint across the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey, and Jordan. The Group's integrated portfolio includes market-leading brands across four key categories: Water & Food (Al Ain Water, Al Bayan, VOSS, Alpin, SunRice, Campa Cola), Snacking (Al Foah, BMB, Abu Auf, Al Faysal Bakery & Sweets), Protein and Frozen (Nabil Foods, Atyab, Al Ain Frozen Vegetables), and Agri-Business (Grand Mills, Agrivita). With more than 12,000 employees across its operations, Agthia's products reach consumers in over 60 markets worldwide. For more information, please visit or, email us on corpcoms@
