During H1 2024, the group's net revenue grew 14.7% year-on-year to AED 2.5 billion, with 11.2% of this growth coming from volume and 3.5% from pricing. H1 2024 Group EBITDA grew 19.9% YoY and Group net profit grew 31.8% YoY. Innovations accounted for 45% of Agthia's growth in the first half of 2024. In light of the substantial surge in profit growth, we are pleased to announce a 25% increase in our interim dividends, subject to AGM approval. This decision underscores our robust financial position and commitment to delivering value to our shareholders. 

"All our segments have seen positive revenue growth in H1 2024. Revenue growth in H1 was driven by a 19.5% increase in snacking and a 5.2% increase in agri-business, excluding the one-off. The Group delivered a 5.7% year-on-year revenue growth during the traditionally slower Q2 which was driven by 4% growth in volume and 1.6% growth in prices. Our snacking business delivered the highest growth in EBITDA margin of 330 bps, followed by our water business that achieved 193 bps of margin growth, and protein and frozen that achieved 143 bps of margin growth in H1 2024." According to Alan Smith, CEO of Agthia Group. 

Agthia enjoys relatively low leverage compared to peers, with a Net Debt/EBITDA ratio of 1.6x, providing significant debt capacity for future M&A activities, up to 4x. As of the end of June 2024, our net debt was AED 1.2 billion, 2.7% lower than H1 2023, and we have AED 403 million in cash available for funding M&A. Our interest coverage ratio stands at 7.7x, among the highest in the sector, enabling us to secure favorable borrowing terms from supportive lending banks and achieve a strong yield on cash, maintaining low net borrowing costs. We consistently evaluate our capital structure, making adjustments as needed, supported by strong cash generation that allows for flexible investments in growth. If external financing becomes necessary, we will consider all options, choosing the most appropriate based on a cost versus return-analysis.

The current situation in the region is distressing, and our heartfelt sympathies go out to the affected individuals and families. Despite the geopolitical challenges, Agthia remains unaffected due to its operations in numerous geographically diverse markets and highly diversified
portfolios, which enable us to navigate any situation. As a precaution, we have increased our stock coverage ratio to ensure the availability of all supplies, currently maintaining six months of physical wheat coverage.

"Our Egyptian businesses achieved a solid 20.3% year-on-year revenue growth in AED terms during H1 2024, despite the negative impact of EGP devaluation. Export revenue from Egypt reached AED 50.7 million, a 53.6% year-on-year increase. Agthia’s underlying growth in local currency across our Egyptian assets remains robust. Egypt is a strategically important market due to favorable long-term socio-demographics and structural demand for Protein, Coffee, and Snacking products, as well as its potential as a cost-efficient manufacturing hub for key regional and international export markets. We believe that establishing an export hub in Egypt is a key hedging mechanism against currency volatility. Additionally, we see strong opportunities to scale up into new markets, such as the GCC and North Africa, several of which have supportive trade agreements." added the CEO.

Our protein business in Jordan, Nabil, is equally focused on domestic and GCC exports, serving retail, food service, and QSR channels in both regions. In Kuwait, we operate Al Faysal Bakery and a water business, while our water business in Saudi Arabia became profitable last year. In H1 2024, our international water and food segment saw a 3.5% year-on-year revenue increase, with strong performances in Oman (+10.6%) and Kuwait (+7.6%). Despite market headwinds in Jordan affecting our protein and frozen segments, Nabil achieved a 2.2% year-on-year revenue growth in Q2 2024, primarily driven by volume, thanks to continuous innovation and new product introductions.

At the core of our innovation efforts is a dedicated Central Innovation Team that coordinates initiatives across business units, R&D, and external partners. Innovations accounted for 45% of Agthia's growth in the first half of 2024 (excluding a one-off in Q1 2024). Key highlights since the beginning of the year include: in Snacking, Abu Auf launched instant coffee jars, and espresso beans, and expanded its snacking portfolio with savory flavored popcorn, crackers, coated peanuts, protein bars, and nut bars, while Date Crown introduced an organic date range; in Protein & Frozen, Nabil brand premium products were launched in Jordan, including high-quality beef and chicken burgers, and a new range of frozen potato varieties in the UAE; and in Agri-Business, we introduced two new specialty flour products to meet specific client needs and launched the new Agrivita Dairy Premix in response to UAE farmers’ growing demand for improved animal nutrition.