Agthia Group PJSC has reported AED 1.3 billion in net revenue for the first quarter of 2025, reflecting an 11.4% decline year-on-year. The dip comes as the Group laps a strong comparative quarter that included one-time wheat trading gains and faces ongoing pressure from Egypt’s currency devaluation and operational issues in its dates business.
Adjusted Growth and Market Resilience
Despite the reported revenue contraction, Agthia noted that underlying business performance remains robust. Adjusting for the AED 120 million wheat trading activity in Q1 2024 and the impact of the Egyptian pound’s sharp devaluation last March, the Group’s revenue would have seen a year-on-year increase of 5.2%.
Group EBITDA fell 20.2% year-on-year to AED 185.7 million, with a margin of 14.5%, highlighting challenges in specific product segments. Net profit stood at AED 86.1 million for the quarter, with a 6.7% margin. The introduction of the UAE’s Pillar II corporate tax framework increased Agthia’s effective tax rate to 19.3%, up from 13.5% in the same period last year, putting additional pressure on profitability.
Strategic Investments in Snacking and Water
Agthia continued to advance its portfolio strategy in Q1 by boosting its shareholding in Abu Auf from 70% to 80%. The move enhances integration in the Snacking segment and reinforces the Group’s commitment to long-term category growth aligned with evolving consumer preferences.
In a parallel move, the Board of Directors approved the acquisition of Riviere, a major player in the UAE’s bottled water sector focused on the HoReCa (Hotels, Restaurants, and Cafés) channel. This acquisition also strengthens Agthia’s direct-to-consumer offering and bolsters its market position in the Water category.
Solid Financial Position Supports Growth
Agthia concluded the quarter with a net debt-to-EBITDA ratio of 2.4x and AED 321 million in cash and equivalents. The Group’s sound balance sheet positions it to continue investing in strategic priorities while navigating near-term headwinds and capitalising on long-term growth opportunities across its diversified portfolio.
