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- Flour business outperforms on account of domestic and international sales
- Agthia witnessed growth in key categories, including 5-gallon HOD business and food segment, despite headwinds
Abu Dhabi, UAE – Through Senaat, Agthia Group PJSC, the leading food and beverages company and part of ADQ – one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy – today announced preliminary and unaudited results for the fiscal year ending 31 December 2020. The Group posted AED 34.5 million in net profit, as well as net revenues of AED 2.06 billion. Agthia grew its revenues by 1.1% year-on-year on account of growth in key categories including the flour business, 5-gallon Home and Office Delivery (HOD) business and food segment.
The consumer-business contributed 55 percent to Agthia’s top-line, driven by the growth in the 5-gallon Home and Office Delivery (HOD) business in the UAE, the food segment business in both the UAE and Egypt, along with its operations in Kuwait. Despite the descent in volume on lower consumption due to restrained tourism and COVID-19 impact on the food service channel, Agthia maintained its no. 1 position in the bottled water category. In the retail channel, Agthia’s water portfolio including Al Ain Water along with Al Bayan and Alpin retained their market leadership with volume and value shares at 27 and 24 percent, respectively.
On the front of Agthia’s Agri-business, composed of Grand Mills Flour and Agrivita Animal Feed, the flour business outperformed as volumes recorded strong growth in domestic and international sales. Meanwhile, the Animal Feed sales remained flat despite the decrease in local demand amid new restrictions related to trading subsidised animal feed in the open market.
Khalifa Sultan Al Suwaidi, Chairman, Agthia Group, said: “2020 caps another successful year for Agthia in terms of delivering on our strategic priorities and further growth of the Group, despite headwinds. The Group demonstrated great agility and resilience while navigating the pandemic this past year to uphold and safeguard shareholder value. Furthermore, in support of our growth agenda, we underwent major changes including the appointment of a new board, CEO and new top team additions along with the sign-off of the distribution agreement with VOSS and the progress made in value-creating target acquisitions of Al Foah Company and Al Faysal Bakery & Sweets.”
Alan Smith, Chief Executive Officer of Agthia Group, said: “In 2020, Agthia continued its growth momentum by investing in meeting the demands of our consumers in a challenging environment. Agthia has seen good momentum in the food and 5-gallon HOD business segments on growing volumes and cost efficiencies. The Group’s success has also been complimented by enhanced agri-business margins, particularly the flour business which beat estimates with strong growth in local and regional markets. While the Group’s net profit stood at AED 34.5 million, the normalized net profit of AED 117 million excludes the AED 82 million one-off aggregate recorded in the third quarter, post the strategic review exercise to improve the quality of earnings.”
Agthia Group’s total assets stood at AED 3.1 billion as of 31 December 2020, while total shareholder’s equity stood at AED 1.9 billion.
The Company’s preliminary results are available on the Company’s website www.agthia.com and on www.adx.ae.
© Press Release 2021
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