Agthia Group Reports 24% Year-on-Year Increase In Net Profit For First Nine Months Of 2024

Agthia Group PJSC has reported its financial performance for the first nine months of 2024, showcasing growth across all business areas. The Group highlighted that its strong results position it to achieve its annual targets, with both EBITDA and net profit surpassing revenue growth due to operational efficiencies and cost management.

The Group's net profit increased by 24.0% compared to the previous year, reaching AED 254.9 million in the first nine months of 2024. This demonstrates Agthia's ability to withstand a challenging economic environment. Despite facing currency devaluation in Egypt and new income tax in the UAE, the net profit margin improved by 78 basis points to 7.1%.

Agthia's net revenue rose by 10.3% year-on-year to AED 3.6 billion, with volume contributing 8.5% and pricing adding 1.8%. Strategic portfolio adjustments towards higher-growth segments and innovations accounted for 57% of total growth. Adjusted for currency devaluation in Egypt, revenue increased by 18.4% year-on-year.

Despite foreign exchange challenges, Agthia's Egyptian operations achieved a 10.6% revenue increase in AED terms during this period. This reflects the Group's strategic focus on innovation and high-growth areas, which have been pivotal in driving overall performance.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, stated: "Agthia's strong year-to-date performance reflects the strength of our diversified portfolio and strategic growth initiatives, even amidst global challenges such as currency fluctuations and inflationary pressures." He emphasized their ability to balance innovation with efficiency and sustainability.

Alan Smith, CEO of Agthia Group, commented: "We are making significant strides in protecting our core business, benefiting from value-accretive M&A, and investing in innovation and capabilities." He noted that despite external challenges like those in Egypt, they maintained robust margin improvements through efficiency gains.

Focus on Innovation and Sustainability

The Group has made substantial progress in enhancing its ESG agenda through strong governance and a unified culture around sustainability. Investments in brands and people have fueled sustainable growth while capturing synergies and improving operational efficiency.

The leadership remains committed to accelerating regional growth and strengthening market leadership. Their focus is on balancing innovation with operational resilience to deliver long-term value for stakeholders amid macroeconomic headwinds.

Agthia's strategic initiatives have positioned it well for future success by leveraging innovation and operational efficiencies while maintaining a focus on sustainability across its diverse portfolio.

With inputs from WAM