Agthia Group Announces Significant Revenue And Profit Increases In First Half Of 2024

Agthia Group PJSC (Agthia or the Group) reported its financial results for the first half of 2024, ending on 30 June. The Group achieved robust performance, aligning with its full-year 2024 targets. Profitable growth across all four segments and enhanced group-wide efficiencies led to faster growth in both Group EBITDA and net profit compared to revenue.

Group net profit surged by 31.8% year-on-year to AED 190.0 million during H1 2024, with a net profit margin of 7.5%, reflecting a 98bps increase despite FX challenges and the introduction of income tax in the UAE. Additionally, Group net revenue increased by 14.7% YoY to AED 2.5 billion.

The board of directors has proposed an interim cash dividend of AED 85.7 million (equivalent to 10.31 fils per share), in line with Agthia’s semi-annual dividend policy. This represents a 25% increase from the previous year, pending shareholder approval at the next AGM.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, stated: "Agthia continues to deliver strong performance, solidifying our growth momentum in the first half of the year. Our unwavering commitment to strengthening our business and achieving our long-term goals remains clear. This quarter’s results underscore our resilience and strategic focus on driving sustainable value across our diverse portfolio. Going forward, we are well-positioned to seize opportunities in the MENA region and beyond, leveraging our strengths in innovation, digitalization, and operational excellence."

Alan Smith, Group Chief Executive Officer of Agthia Group, commented: "Agthia delivered solid top and bottom-line results in the first half of the year, reaffirming our ability to navigate effectively challenging and dynamic operating environments. Our teams maintained their focus and agility in the execution of our long-term growth strategy, and we continue our efforts to drive sustainable long-term growth by investing in our brands, capturing synergies and driving efficiency gains."

The company’s profitable growth was evident across all four segments it operates in. Leveraging group-wide efficiencies played a significant role in this achievement.

The positive financial outcomes reflect Agthia's strategic focus on innovation, digitalisation, and operational excellence.

Agthia's resilience is highlighted by its ability to maintain profitability despite external challenges such as foreign exchange headwinds and new tax regulations.

The proposed dividend distribution aligns with Agthia’s commitment to delivering value to shareholders while maintaining a strong financial position.

Overall, Agthia's performance during H1 2024 demonstrates its capability to achieve sustainable growth through strategic investments and operational efficiencies.

With inputs from WAM