Agthia's growth story continues in 2024, fueled by innovation and market leadership

Zawya

27-02-2025

Group EBITDA Declines 1.5% YoY to AED 679 million
Group Net Profit Increases 7.4% YoY to AED 322 million
Board Recommends 19.0% YoY Increase in FullYear Dividends to AED 175 million (Subject to AGM Approval)
Abu Dhabi, UAE – Agthia Group PJSC ('Agthia' or 'the Group'), one of the region's leading food and beverage companies, today announced its audited financial results for the fiscal year ending 31 December 2024.
Agthia sustained its growth momentum in 2024, with strong topline expansion across Snacking, Agri-Business, and Water & Food. While operational challenges in the dates business impacted short-term performance, the Group's fundamentals remain strong, and the company is well-positioned to create long-term value across its diverse businesses and markets. Total revenue rose 7.7% to AED 4.9 billion, with underlying growth at 16.7% when adjusted for Egypt's currency devaluation. While EBITDA saw some pressure, strong performances from Abu Auf and core UAE businesses helped offset the impact. Net profit climbed 7.4% to AED 321.8 million, with earnings per share up 7.9%, reinforcing Agthia's resilience in navigating macroeconomic pressures while delivering shareholder value.
Water & Food revenue grew 7.4%, with UAE water up 9.6%. Over the past three years, the segment has consistently expanded, solidifying Al Ain Water's strength as the market leader. A focus on premiumization and innovation further expanded the segment's EBITDA margin by 137bps.
Agri-Business saw 8.6% growth, strengthening Agthia's leadership in flour and animal feed, supported by efficiency gains and digitalization resulting in an expansion of the segment's EBITDA margin by 327bps.
Protein & Frozen upheld market leadership in Jordan and Egypt despite a challenging macro-environment. While revenue declined 1.7% (+20.1% excluding EGP devaluation), strategic pricing and efficiencies resulted in EBITDA margin growing by 65bps. Expansion initiatives gained momentum with the launch of an IQF strawberry line in Egypt, supporting Agthia's Egypt export strategy, and the Saudi protein facility, which is ramping up capacity to strengthen Agthia's foothold in the GCC's largest market.
Snacking led growth, with revenue up 14.7%, driven by Abu Auf's strong 33.3% increase and fueled by product innovation and 59 new store openings. The dates business grew 11%, but operational setbacks resulted in an oversupply position leading to margin dilution, increased customer exposure risk, and an inventory write-down that impacted the segment's overall profitability. While some residual effects are expected in the first half of 2025, Agthia Group is taking proactive measures to restore profitability and drive long-term growth.
Agthia continued to strengthen Egypt's role as a key export hub, with export revenue surging 52% year-on-year to AED 105.3 million in 2024 supported by the new IQF strawberry line. Despite currency challenges, Agthia's Egyptian businesses combined grew 8.1% (in AED terms) led by Abu Auf's rapid retail expansion and product innovation, further demonstrating the strength of its diversified portfolio.
With product innovation contributing AED 159 million to Agthia's 2024 revenue growth, the Central Innovation Team continues to enhance collaboration across business units, R&D, and external partners. Abu Auf expanded its coffee portfolio and introduced a diverse range of new snacks, while Nabil launched premium burgers and a frozen potato range. In Agri-Business, the introduction of specialty flour products and the Agrivita Dairy Premix addressed evolving customer needs, reinforcing Agthia's commitment to product excellence and market-driven innovation.
Agthia continued to enhance customer experience and operational efficiency through its digital roadmap. In 2024, the Group launched a B2B Customer Portal, expanded e-commerce across leading regional platforms, and improved its Home & Office Services app, driving a 55% surge in e-commerce revenue, now representing 5.4% of total revenue (excluding wheat trading). AI-powered solutions, including Microsoft Copilot for customer service and a proprietary Dates AI Recognition Model, developed in collaboration with MBZUAI and Contango/Next50, streamlined operations and optimized Agthia's value chain. Additionally, AI-driven safety technology was introduced across multiple facilities, reinforcing Agthia's commitment to employee safety and digital excellence.
Agthia continued to advance its sustainability leadership in 2024, achieving a 6.3% reduction in CO2 emissions. Additionally, sustainability-driven cost optimization initiatives delivered total savings of AED 8.97 million, including AED 3.3 million in savings from reduction in packaging. Agthia remains at the forefront of circular economy practices, with its commitment to environmental responsibility recognized with Gold at the Gulf Sustainability Awards for Best Sustainable Product, and Bronze for Best Circular Economy Practice for its recycled PET (polyethylene terephthalate) water bottles. Further strengthening its environmental agenda, the Group joined the UAE Alliance for Climate Action (UACA) and signed an agreement with Emirates Nature-WWF to drive long-term sustainability initiatives.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented: 'Agthia's growth strategy remains strong, underpinned by solid fundamentals and a clear vision for long-term value creation. Despite macroeconomic challenges and short-term setbacks in the dates business, we continue to execute with discipline, leveraging our diversified portfolio, operational resilience, and commitment to innovation to drive sustainable growth. We have proposed an increase in dividends, reaffirming our commitment to delivering on our fundamentals and reinforcing confidence in our long-term strategy and vision. As the UAE strengthens its position as a global economic hub, Agthia remains aligned with the nation's ambitions, reinforcing its leadership across the region and beyond.'
Alan Smith, Group Chief Executive Officer of Agthia Group, added: 'Agthia's investments in innovation and digitalization are paying off, helping us sharpen execution and strengthen our core businesses. Our businesses have delivered strong results and retained their market leadership. While the dates business faced operational setbacks, we are taking proactive steps to address these challenges and improve overall performance. Our growth story is a testament to the hard work, agility, and growth mindset of our employees, whose dedication drives our ability to adapt, innovate, and lead in a dynamic market. As we approach the final year of our 2025 strategy, we remain focused on building on this momentum, ensuring we stay ahead of evolving market needs while reinforcing Agthia's position as an industry leader.'
With a robust financial position, strong cash reserves, and a Net Debt-to-EBITDA ratio of 1.5x, Agthia remains well-positioned for sustainable growth and strategic expansion.
Agthia's Board of Directors has proposed a full-year cash dividend of 21.03 fils per share, totaling AED 175 million, a 19.0% increase from 2023. This includes a second-half dividend of 10.72 fils per share, pending AGM approval, in line with the Group's semi-annual dividend policy. An interim dividend of 10.31 fils per share (AED 85.7 million) was already paid for the first half of the year.
The Group's preliminary results are available on the Group's website www.agthia.com and at www.adx.ae
About Agthia
Agthia Group PJSC 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'. Agthia Group PJSC is part of ADQ, one of the region's largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi's diversified economy. The Group's assets are located in the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey, and Jordan. Agthia offers a world-class portfolio of integrated businesses providing high-quality and trusted food and beverage products for consumers across the UAE, GCC, Turkey, the wider Middle East, South America and Asia. More than 12,000 employees are engaged in the manufacturing, distribution, and marketing of various products in categories such as Water & Food (Al Ain Water, Al Bayan, Alpin Natural Spring Water, VOSS, Al Ain Food & Trading Items); Snacking (Al Foah, Al Faysal Bakery & Sweets, BMB, Abu Auf); Protein and Frozen (Nabil Foods, Atyab, Al Ain Frozen Vegetables); and Agri-Business (Grand Mills, Agrivita).