Agthia Group Reports AED 1.3 Billion In Q1 Revenue Amid Operational Challenges And Currency Devaluation

Agthia Group PJSC has released its financial results for the first quarter of 2025, ending on 31 March. The company reported AED 1.3 billion in revenue, which marks an 11.4% decrease compared to the same period last year. This decline is attributed to several factors, including a one-time wheat trading activity worth AED 120 million, the devaluation of the Egyptian currency in March 2024, and ongoing challenges in the dates business.

Despite these setbacks, if the effects of the Egyptian pound devaluation and last year's wheat trading were excluded, Agthia's revenue would have shown a year-on-year increase of 5.2%. The Group's EBITDA fell by 20.2% to AED 185.7 million, with a margin of 14.5%, due to pressures in certain categories. Net profit for the quarter was AED 86.1 million, with a margin of 6.7%.

During this period, Agthia increased its ownership in Abu Auf from 70% to 80%, enhancing its integration within the Snacking segment. This move demonstrates Agthia's commitment to expanding high-potential categories that align with changing consumer preferences. Additionally, the Group's Board approved acquiring Riviere, a prominent bottled water HOS player in the UAE.

This acquisition aims to broaden Agthia’s direct-to-consumer reach and solidify its leadership position in the Water category. These strategic investments reflect Agthia’s focus on scaling opportunities that promise long-term growth potential.

The implementation of Pillar II corporate tax in the UAE affected profitability by increasing Agthia’s effective tax rate from 13.5% last year to 19.3%. Despite these challenges, Agthia maintained a strong financial position with a Net Debt-to-EBITDA ratio of 2.4x and AED 321 million in cash and equivalents.

This robust financial standing supports ongoing investments in strategic priorities and growth opportunities for Agthia Group PJSC.

With inputs from WAM