Latest news with #AgthiaGroup
Al Bawaba
a day ago
- Business
- Al Bawaba
UAE Investors Flock to Food, Retail & Hospitality Stocks Ahead of Holiday Surge
As the UAE prepares for the Eid holidays, local equity markets are experiencing a familiar seasonal trend: a shift in investor focus toward food, retail, and hospitality stocks, driven by an anticipated surge in consumer spending and sales in the UAE are forecast to reach $10 billion this year, highlighting the economic significance of the festive period. Food and beverage producers, particularly Agthia Group, are already witnessing increased demand for staples such as dates, flour, and bottled water — key items during Ramadan and Eid celebrations. Agthia, listed on the ADX, reported an 8.1% year-on-year revenue increase in a recent quarter, largely fueled by strong seasonal sales."Investors have become more attuned to the predictable earnings rhythm driven by Eid-related consumption," said Josh Gilbert, Market Analyst at eToro. "We typically see a spike in food and retail performance leading into the holiday, and this often shows up in market movements."Retailers such as Union Coop (DFM-listed) and Lulu Group (ADX-listed) have benefited from increased foot traffic, gift-buying, and promotional campaigns. Union Coop has seen consistent holiday-driven growth since its listing in 2022, while Lulu Group has leaned into the festive momentum with store expansions and targeted hospitality sector is also capitalizing on the Eid travel boom. Abu Dhabi National Hotels (ADX: ADNH) and other listed hotel operators reported significant increases in occupancy, with some Emirates peaking at over 95% during Eid al-Fitr 2025. This surge is driven in part by intra-GCC tourism and a rise in domestic 'staycations,' bolstering hotel revenues, RevPAR, and margins."The UAE's strong macroeconomic conditions, supported by elevated oil prices and a post-COVID tourism rebound, are reinforcing these seasonal trends," added Gilbert. "Tourism now contributes nearly 9% to the UAE's GDP, and festive periods like Eid deliver a clear economic and market impact."Equity traders have taken note. In the run-up to Eid, shares of consumer-focused companies often see increased trading volumes and positive price action. In one pre-Eid trading session, Dubai's consumer staples index jumped more than 2% in a single day, underscoring how investors reposition their portfolios toward holiday beneficiaries. While overall liquidity may dip during the holiday week, the run-up to Eid continues to offer a meaningful — if temporary — catalyst for UAE equities. As the festive period kicks off, companies in the food, retail, and hospitality sectors are once again in the spotlight, supported by strong consumer sentiment and investor interest.
Khaleej Times
a day ago
- Business
- Khaleej Times
UAE investors flock to food, retail and hospitality stocks ahead of holiday surge
As the UAE prepares for the Eid holidays, local equity markets are experiencing a familiar seasonal trend: a shift in investor focus toward food, retail, and hospitality stocks, driven by an anticipated surge in consumer spending and tourism. Retail sales in the UAE are forecast to reach $10 billion this year, highlighting the economic significance of the festive period. Food and beverage producers, particularly Agthia Group, are already witnessing increased demand for staples such as dates, flour, and bottled water — key items during Ramadan and Eid celebrations. Agthia, listed on the ADX, reported an 8.1 per cent year-on-year revenue increase in a recent quarter, largely fueled by strong seasonal sales. 'Investors have become more attuned to the predictable earnings rhythm driven by Eid-related consumption,' said Josh Gilbert, market analyst at eToro. 'We typically see a spike in food and retail performance leading into the holiday, and this often shows up in market movements.' Retailers such as Union Coop (DFM-listed) and Lulu Group (ADX-listed) have benefited from increased foot traffic, gift-buying, and promotional campaigns. Union Coop has seen consistent holiday-driven growth since its listing in 2022, while Lulu Group has leaned into the festive momentum with store expansions and targeted promotions. The hospitality sector is also capitalising on the Eid travel boom. ADX-listed Abu Dhabi National Hotels and other listed hotel operators reported significant increases in occupancy, with some emirates peaking at over 95 per cent during Eid Al Fitr earlier this year. This surge is driven in part by intra-GCC tourism and a rise in domestic 'staycations,' bolstering hotel revenues, RevPAR, and margins. 'The UAE's strong macroeconomic conditions, supported by elevated oil prices and a post-COVID tourism rebound, are reinforcing these seasonal trends,' added Gilbert. 'Tourism now contributes nearly 9 per cent to the UAE's GDP, and festive periods like Eid deliver a clear economic and market impact.' Equity traders have taken note. In the run-up to Eid, shares of consumer-focused companies often see increased trading volumes and positive price action. In one pre-Eid trading session, Dubai's consumer staples index jumped more than 2 per cent in a single day, underscoring how investors reposition their portfolios toward holiday beneficiaries. While overall liquidity may dip during the holiday week, the run-up to Eid continues to offer a meaningful — if temporary — catalyst for UAE equities. As the festive period kicks off, companies in the food, retail, and hospitality sectors are once again in the spotlight, supported by strong consumer sentiment and investor interest.
Al Bawaba
2 days ago
- Business
- Al Bawaba
Eid Powers UAE Markets at 95% Hotel Occupancy and $10B in Sales
Each year, as the UAE heads into the Eid holidays, a familiar pattern tends to emerge across local equity markets. Investors start turning their attention to food, retail and hospitality stocks, anticipating a seasonal uplift in spending and activity. Consumer sentiment typically builds and peaks around Eid, with retail sales in the UAE forecast to hit $10 billion this year. This isn't just anecdotal, it shows up in the numbers. For instance, Agthia Group, a major player in food and beverages, often sees a spike in demand for staples like dates, flour and bottled water during holy periods in the UAE. In 2023, the company reported a strong Q2 before revenue softened in Q3, largely because the Eid-driven sales bump had passed. That kind of seasonal fluctuation has become a regular feature of Agthia's earnings rhythm, and investors are increasingly attuned to also benefit from this surge in pre-Eid shopping, according to Josh Gilbert, Market Analyst at eToro. Union Coop, one of the UAE's largest grocery chains, consistently reports higher footfall and sales leading into the holiday. Although only listed since 2022, the market's response to its seasonal performance has already been positive. Lulu Group, which listed on ADX last year, is another name that has leaned into festive demand with targeted promotions and store expansions. For investors, this seasonality has helped support upward momentum in the sector, particularly when paired with broader macro stocks tell a similar story. Eid is a high season for travel and leisure, and hotel operators tend to post stronger numbers off the back of it. Abu Dhabi National Hotels (ADNH) typically sees occupancy levels rise across its portfolio, and this year was no exception – hotel occupancy in some Emirates peaked at over 95% during Eid. These demand spikes often translate into improved RevPAR and profit margins, which can support share price moves around this macroeconomic conditions in the UAE have helped support seasonal equity trends around Eid. Elevated oil prices have boosted government spending and consumer confidence, while the post-COVID rebound in tourism and the job market has further fuelled festive demand. With tourism now contributing close to 9% of GDP, the influx of visitors during Eid has directly lifted retail sales and hotel occupancy. Household spending has remained resilient, especially during key cultural moments like Eid. For investors, this macro backdrop reinforces the case for stronger earnings across consumer-facing sectors during the festive period, which can often correlate to strong share price the Eid holidays approach each year, UAE equity markets tend to reflect a predictable seasonal shift. Investors often increase their focus on consumer-facing sectors in anticipation of festive surges in spending and travel. Trading activity gravitates toward food, retail, and hospitality shares that stand to benefit most from holiday demand. Macro drivers take a backseat during this period, as sector-specific trends dominate investor the weeks around Eid, consumption of food and consumer goods spikes as families prepare celebrations. This seasonal lift directly benefits UAE-listed food producers and retailers. Agthia Group – an ADX-listed food & beverage firm – often experiences strong demand for staples like flour, bottled water, and especially dates, a traditional delicacy. Notably, Agthia's revenues jumped 8.1% year-on-year in a recent quarter, driven by robust sales of dates, flour and other core the retail side, chains such as Union Coop (DFM) enjoy higher footfall and sales fueled by holiday promotions and gift-buying. Retailers typically launch Eid campaigns with steep discounts, and malls see some of their highest footfall and sales volumes of the year during the festive period The anticipation of strong Eid sales often leads to upward moves in these stocks and heavier trading volumes in the run-up to the holiday, as investors position for a potential earnings boost in the consumer Uptick Lifts Hospitality StocksEid is also a peak season for travel and tourism in the Gulf. Many families across the region take advantage of the days off for vacations or 'staycations,' resulting in a sharp uptick in UAE hotel occupancy and leisure spending. During Eid al-Fitr 2025, for example, hotel occupancy in some emirates nearly hit full capacity – Ajman peaked at 95.8% on the holiday night Intra-GCC tourism typically soars over Eid, bolstering hospitality and entertainment businesses; destinations like the UAE attract regional tourists and see a surge that boosts hotel revenues, retail sales and visitor spending This trend has direct implications for Abu Dhabi National Hotels (ADX: ADNH) and other listed hospitality operators, which tend to report higher occupancies and RevPAR during and even restaurant stocks often trade actively around this season, as investors anticipate that festive tourism flows and dining-out plans will translate into improved quarterly results. Importantly, these seasonal consumption and travel patterns don't go unnoticed in the markets. Every Eid, market participants re-calibrate portfolios toward the beneficiaries of holiday spending, and the effect can be seen in short-term equity performance. For instance, consumer-focused stocks have at times led the market higher just before an Eid break – on one pre-Eid trading session, Dubai's consumer staples sector index jumped over 2% in a single day While overall liquidity can taper off during the holiday week, investor interest in names like Agthia, Union Coop and ADNH tends to spike ahead of Eid as traders seek to capitalize on seasonal demand drivers. In summary, the Eid period injects a notable, if temporary, catalyst into UAE equities, with food, retail, and hospitality shares enjoying a seasonal tailwind in both sentiment and trading activity.
Zawya
18-05-2025
- Business
- Zawya
Alan Smith, Chief Executive Officer of Agthia Group, shares insights
Alan Smith, Chief Executive Officer of Agthia Group, shares insights, highlighting the group's financial performance for the first quarter of 2025. Agthia Group PJSC - one of the region's leading food and beverage companies, today announced a resilient first-quarter performance, with underlying Group revenue growing by 5.2% year-on-year when excluding the impact of non-recurring factors such as last year's one-off wheat trading activity and the devaluation of the Egyptian pound. This underlying growth highlights the strength and resilience of Agthia's core business amidst a dynamic operating environment. Despite short-term pressure, Agthia continues to invest in its future allocating AED 25.1 million to capex and AED 129.2 million to increase its stake in Abu Auf raising its share from 70% to 80%, deepening vertical integration in the snacking segment. In May 2025, Agthia strengthened its leadership in the UAE water market through the strategic acquisition of Riviere, a prominent player in home water delivery segment. This milestone move significantly expands our household customer base tripling our reach and deepens our market penetration in a key growth category. said Smith. In this regard, Alan Smith, Chief Executive Officer of Agthia Group, stated: 'we continue to see strong performance across key verticals. BMB delivered a solid 8.4% growth in revenue, driven by rising exports to the United States and continued consumer demand for its premium snack portfolio. Abu Auf also maintained its growth trajectory, recording a 4.3% revenue increase in AED terms; however, the devaluation of the Egyptian Pound significantly impacted the reported figure, which in local currency terms stood at a notable 48.9%. Excluding the one-off wheat trading activity in Q1 2024, our Agri-Business delivered a solid underlying performance, achieving revenue growth of 2.9%. The Water and Food segment remained a core contributor, growing 10.6% year-on-year. Within the UAE, water revenues increased by 6.1%, while our international water portfolio showed strong momentum particularly in Turkey, which grew by 9.9%, and Saudi Arabia, where we achieved 4.8% growth. Meanwhile, the Protein segment saw a 15.7% decline in revenue due to continued pressure in the Egyptian market and a temporary slowdown in export sales from Nabil in Jordan. This was partially offset by the growth coming from our new protein facility in Saudi Arabia, which commenced operations in July 2024. Our combined operations, comprising Nabil export from Jordan and our new facility in KSA, delivered a robust 17.2% sales growth within the Kingdom, underscoring the strategic importance of our expansion in this key regional market.' And commenting on how the US tarrifs would affect Agthia's operation Smith said: While Agthia's direct exposure to the U.S. market remains limited accounting for approximately 1% of our total revenue ongoing trade protectionist measures, particularly tariffs on essential commodities, may pose indirect challenges to global supply chains. As a diversified group operating across multiple segments and geographies, we remain vigilant in monitoring global trade dynamics to proactively address and mitigate any potential cost implications. Our sourcing strategy is built on diversification, trusted supplier partnerships, and a strong regional presence, which collectively grant us the flexibility to navigate fluctuations in commodity pricing and availability. In parallel, we continue to optimize procurement processes, manage inventory efficiently, and explore alternative markets to reinforce our supply chain resilience. Despite potential volatility in global trade, our operational agility and cost discipline ensure that we are well-positioned to uphold the value we deliver to both our shareholders and our consumers.
Zawya
14-05-2025
- Business
- Zawya
Growth in core segments partially offsets segment-specific headwinds
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. Excluding the impact of EGP devaluation and the wheat trading activity recorded last year, Group revenue would have recorded an increase of 5.2% year-on-year. 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.
