Agthia Group’s shareholders approve dividend payment of Dh90m for 2019

The company reported a 2 per cent increase in its full-year revenue for 2019

Agthia reported a  drop in its first-half net profit on Tuesday.​​ Delores Johnson / The National

Agthia Group's shareholders approved a dividend payment of Dh90 million for the year ended December 31, 2019.

The total amount is equivalent to 15 per cent of the company’s issued capital, the food and beverage firm said in a statement to Abu Dhabi Securities Exchange, where its shares trade.

Agthia, known for brands like Al Ain and Al Bayan water, reported a two per cent increase in its full-year revenue for 2019 of Dh2.04 billion on the back of geographic expansion and diversification of products. However, net profit attributable to shareholders slid 35 per cent to Dh137m as a battle for market share cut into its margins.

“Our revenue growth demonstrates Agthia’s strength, led by our diversified product portfolio and increase in geographic footprint,” Jamal Salem Al Dhaheri, Agthia Group acting chief executive, said.

“Despite the competitive and aggressive activity in various segments, we continue to lead the market share against a backdrop of price promotions and changing consumer habits.”

Mr Al Dhaheri replaced Tariq Al Wahedi as the acting chief executive of Agthia earlier this year. He is also the chief executive of Senaat, the Abu Dhabi industrial conglomerate that owns Agthia and other companies including Emirates Steel, Ducab and Arkan Building Materials.

Established in 2004, Agthia owns assets in the UAE, Oman, Saudi Arabia, Egypt and Turkey. It manufactures a variety of brands in different categories including water, juices, flour, animal feed, processed fruits and vegetables, dairy and frozen baked products.

The company’s total assets increased marginally to Dh3.12bn as of December 31, compared to Dh2.96bn at the end of 2018, after implementing new accounting standards.