Agthia Group PJSC, headquartered in Abu Dhabi, is a prominent food and beverage company operating across the Middle East, North Africa and beyond. The company's diverse portfolio includes products such as water, flour, animal feed, dairy and processed foods, catering to both regional and international markets.

Launched in 2004, the company was listed on the Abu Dhabi Securities Exchange (ADX) in 2005. It is majority owned by General Holding Corporation, or Senaat, which is part of the Abu Dhabi Development Holding Company (ADQ).

The company’s operations are divided into two main divisions. The Agri Business Division focuses on the production and distribution of essential staples like flour and animal feed, supporting both local and regional agricultural sectors. The Consumer Business Division spans multiple industries, including the manufacture and distribution of bottled drinking water, water-based drinks and juices. In the food segment, the company produces a diverse range of products, from tomato and chili paste to fruit concentrates, frozen vegetables, fresh dairy products and frozen baked goods.

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With assets spread across the UAE, Oman, Egypt and Turkey, Agthia’s reach extends far beyond its home market, supplying products to customers throughout the GCC, Turkey, the wider Middle East and international markets.

Its international portfolio of integrated businesses provides high-quality and trusted food and beverage products, including water (Al Ain, Al Bayan, Alpin Natural Spring Water, Bambini); flour (Grand Mills); animal feed (Agrivita); juices (Al Ain Fresh, Capri Sun); dairy (Yoplait); processed food (Al Ain Tomato Paste, Al Ain Frozen Vegetables) and fresh and frozen baked goods (Grand Mills).

Strategic growth drivers
Investment analysis

Agthia reported revenues of AED4.91 billion in its fiscal year 2024, marking a 7.75% increase from the previous year's AED4.56 billion. Net profit for the same period rose to AED322 million, compared to AED300 million.

The consistent growth underscores Agthia's robust market position and effective operational strategies.

Growth prospects
The UAE and the wider region’s rising population growth, consumer preference for high-quality and healthy foods, and a strong government focus on food security are fuelling Agthia’s growth. The company benefits from strong government support and is looking to expand its business in the key markets of Saudi Arabia and Egypt, among others. In addition, it enjoys strong growth potential in its home market of the UAE.

In 2024, it expanded its regional footprint with the launch of a state-of-the-art protein manufacturing facility built at an investment of AED90 million in Jeddah Industrial City 1. It also raised its stake in Abu Auf Group, an Egyptian healthy snacks and coffee brand, to 80% to take advantage of the country’s strong economic and population growth.

This forms part of a strategy to diversify its revenue portfolio, extend its footprint in the MENA region and beyond, and develop value-added food and beverage brands. The company has set external guidance to raise revenues to AED 6 billion by the end of 2025, compared to AED 4.9 billion in 2024, and improve its net profit margin to between 8.5% and 10% in 2025. The company aims to accomplish this by bolstering its core base, including strengthening the water business, building up flour and feed, expanding geographical reach, and shifting the portfolio mix towards higher-margin categories.

Relative valuation

  • Agthia Group currently has a Relative Valuation Rating of 9, significantly above the FTSE ADX General index average rating of 5.9.
  • The company’s current price-to-sales ratio, trailing price-to-earning (P/E) ratio and forward PE multiples are all currently at or near their five-year lows.
  • Based on price-to-sales, Agthia currently trades at a 6% discount to its Food & Tobacco industry group peers. On average, the company has traded at a 42% discount over the past five years.
  • Based on trailing P/E, Agthia currently trades at a 0.6% premium to its Food & Tobacco industry group peers. On average, the company has traded at a 0.3% premium over the past five years.
  • Based on forward P/E, Agthia currently trades at a 9% discount to its Food & Tobacco industry group peers. On average, the company has traded at a 38% discount over the past five years.

Fiscal position
Agthia maintains a solid fiscal position, with total assets amounting to AED6.6 billion as of December 31, 2024. The company's equity attributable to shareholders stands at AED2.9 billion, indicating a strong equity base. This financial stability positions Agthia well for future investments and expansion initiatives.

Return on equity
For the year ending December 31, 2024, Agthia's return on equity was approximately 10.2%, reflecting the company's efficient utilisation of shareholder funds to generate profits.

According to analysts, Agthia demonstrates strong financial performance, promising share growth potential, a solid fiscal foundation and a respectable return on equity.

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