Abu Dhabi’s Agthia 2021 profit increases more than sixfold

The company's profit for the full year reaches $58.81m as revenue increased 49 per cent

Aghtia's net profit attributable to shareholders for the full year climbed to Dh216 million last year. Delores Johnson / The National

Abu Dhabi-based food and beverages company Agthia said its 2021 profit increased more than sixfold as revenue soared 49 per cent on the back of new acquisitions.

Net profit attributable to shareholders for the full year climbed to Dh216 million ($58.81m), the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue during the period reached Dh3 billion.

“Revenues in 2021 improved markedly following key strategic acquisitions in the Protein and Snacking segments,” Alan Smith, chief executive of Agthia Group, said. “This is indicative of Agthia’s ability to adapt to the fluidity of the market by identifying compelling opportunities to bolster and diversify our brand portfolio.”

Agthia, which is owned by Abu Dhabi's state holding company ADQ, has been on a deal-making spree in an effort to become the biggest food and beverage company in the region by 2025.

The total assets of the company more than doubled to Dh6.4bn by the end of 2021 as it completed a number of deals last year.

These have included the purchase of Kuwait's Al Faysal Bakery and Sweets, snacks maker BMB Group, Jordan's Nabil Foods and the world's largest date processing and packaging company, Al Foah.

It also completed the acquisition of a majority stake in Egypt-based meat processor Ismailia Investments – also known as Atyab – in September to expand its portfolio in the Arab world’s most populous country and get a foothold in the frozen food product market.

“2021 rounds off another exciting year of growth for Agthia as we continue to leverage our strong fundamentals to drive further operational efficiencies, promote agility and advance towards our strategic priorities for 2025," Khalifa Al Suwaidi, chairman of Agthia Group, said.

The contribution of consumer business to Agthia’s revenue almost doubled when compared to the previous year, primarily driven by acquisitions made by the company last year. Revenue from the water and beverage segment also improved especially during the second half of the year as hotels and restaurants saw higher footfall, it said on Wednesday.

Agthia will continue to look for new targets to acquire within the Mena region and Pakistan, as it seeks to deploy Dh1bn it has set aside for new deals, Mr Smith told The National in an interview in November.

“We are working on different options to see if there is anything that meets our kind of criteria that we set out in our strategy, good businesses accretive to Agthia, the right geographies, the right categories and also we typically look at whether they've got a good management team and strong brand.”

Agthia manufactures, distributes and markets a range of food and beverage products, including popular regional brands such as Al Ain Water and Al Foah dates.