Agthia Group Sees Remarkable 32% Net Profit Increase In First Quarter Of 2024

Agthia Group PJSC ("Agthia" or "the Group") reported a 32% year-on-year increase in net profit, reaching AED 127.6 million for the first quarter of 2024. The Group's net profit margin expanded by 63 basis points to 8.8%, despite facing foreign exchange challenges and the introduction of income tax in the UAE.

The Group's net revenue rose by 22.6% year-on-year to AED 1.45 billion, driven by a 5% growth in volume and a 5.1% increase in pricing. Adjusted for currency devaluation in Egypt, which had a negative impact of AED 42.5 million, the revenue increased by 26.2% year-on-year. A one-off commodity trading sale in the Agri-Business segment contributed AED 120 million to Q1 2024 revenue. Excluding this one-off, net revenue grew by 12.4% year-on-year.

Agthia's performance was strong across its Snacking, Water & Food, and Agri-Business segments. The Group leveraged efficiencies across its operations, resulting in both EBITDA and net profit growing faster than revenue.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, stated, "Agthia’s performance in the first quarter reinforces our growth story and underscores our leadership's dedication to delivering sustainable growth across all business lines." He added that the Group remains committed to profitable growth through investments in capabilities and innovation.

Alan Smith, Group CEO of Agthia, commented on the results: "Building upon last year's exceptional results, Agthia continues to show strength into the new quarter. Our revenue growth outpaces guidance, reflecting successful business strategies." He highlighted that enhanced profitability demonstrates the Group's focus on operational efficiency amidst global economic challenges.

The Group's strategic vision aims to establish Agthia as a leading food and beverage company in the MENA region and beyond. This vision is supported by ongoing investments in capabilities and innovation.

Financial Highlights

The Group's focus on operational efficiency and strategic investments positions it well for continued growth and value creation for shareholders in the forthcoming quarters.

With inputs from WAM