Agthia Group PJSC (“Agthia” or “the Group”) announced today that its net profit surged by 32% year-on-year to AED 127.6M. Despite facing FX headwinds and the introduction of income tax in the UAE, the Group’s net profit margin expanded by 63 basis points to reach 8.8%.
The announcement coincided with the release of the Group’s results for the three-month period ending 31 March 2024.
In a statement, Agthia highlighted its strong performance during Q1 2024, remaining on track to meet its full-year 2024 guidance. Profitable growth across its Snacking, Water & Food, and Agri-Business segments, along with leveraging group-wide efficiencies, led to faster growth in both Group EBITDA and Group net profit compared to revenue.
The Group’s net revenue saw a significant increase of 22.6% year-on-year to AED 1.45B (with 5% growth from volume and 5.1% from pricing), demonstrating robust performance across all segments despite challenging global macroeconomic conditions. Adjusted for the impact of currency devaluation in Egypt (AED -42.5M), Group revenue increased by 26.2% year-on-year. Q1 2024 revenue was also boosted by AED 120M from one-off commodity trading sales in the Agri-Business. Excluding this one-off, Group net revenue grew by 12.4% year-on-year.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, remarked on the Group’s strong performance, emphasizing their commitment to sustainable growth and establishing Agthia as a premier food and beverage company in the MENA region and beyond.
Alan Smith, Group Chief Executive Officer of Agthia Group, expressed confidence in the Group’s continued progress, highlighting the successful execution of their business strategies and enhanced profitability despite ongoing global economic challenges. He credited the resilience and dedication of the team, affirming Agthia’s strong position for sustained growth and value creation for shareholders.