Agthia Group reports 14.7% YoY net revenue growth, 31.8% YoY group net profit growth during first half of 2024

Agthia Group reports 14.7% YoY net revenue growth, 31.8% YoY group net profit growth during first half of 2024
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Updated 14 August 2024
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Agthia Group reports 14.7% YoY net revenue growth, 31.8% YoY group net profit growth during first half of 2024

Agthia Group reports 14.7% YoY net revenue growth, 31.8% YoY group net profit growth during first half of 2024

Agthia Group PJSC, one of the region’s leading food and beverage companies, announced recently its results for the six-month period ending 30 June. 

Agthia delivered strong performance during H1 2024, on track to meet its full-year 2024 guidance. The group’s profitable growth across all four segments, combined with leveraging group-wide efficiencies, resulted in both Group EBITDA and Group net profit growing faster than revenue.

H1 2024 financial highlights

Group net revenue increased 14.7 percent year-on-year to AED 2.5 billion (11.2 percent growth from volume and 3.5 percent from pricing). Excluding AED 120 million one-off wheat trading sales in agri-business recorded in Q1 2024, the year-on-year net revenue growth was 9.3 percent. This was primarily driven by a continued shift of the group’s product portfolio towards higher growth segments in key target markets, along with innovations. Notably, 45 percent of Agthia's growth in H1 2024 came from innovation alone (excluding one-off in Q1 2024). Group revenue, adjusted for the impact of currency devaluation in Egypt (AED -144.5 million), increased by 21.3 percent year-on-year. Despite the FX impact, Agthia’s Egyptian businesses combined delivered 20.3 percent year-on-year revenue growth in AED terms during the reporting period.

Snacking

Revenue rose 19.5 percent year-on-year, led by the strong performance of the coffee segment, where Abu Auf continued to gain both volume and value share in the local market for premium-branded coffee in Egypt. Abu Auf’s H1 2024 growth was further supported by the ongoing organic expansion of the retail chain, opening 44 new stores, including mobile kiosks, along Egypt’s North Coast. Additionally, the dates category continued to deliver strong growth driven by innovations across mid and high-value ranges, along with an expansion in date varieties and significant value growth across retail channels in the UAE and internationally (e.g. India, Bangladesh, and Morocco). Excluding the FX impact, the segment's revenue growth was 29.6 percent year-on-year.

Protein & Frozen

Revenue grew 7.2 percent year-on-year, despite the pressure from the EGP devaluation. Excluding the FX impact, the segment's revenue growth was 24.1 percent year-on-year. In Q2 2024, Agthia opened a new protein manufacturing plant in Jeddah. This facility offers local production with better economic advantages and positions Agthia as a domestic protein supplier in Saudi Arabia. With a AED 90 million investment, the facility boasts an annualized production capacity exceeding 7,000 tonnes and houses two production lines capable of producing over 50 stock-keeping units.

Water & Food

Revenue increased 4.0 percent year-on-year, with Al Ain bottled water retaining its market leadership position. This reflects an 8.3 percent year-on-year increase in total UAE water revenue growth, fueled by premiumization and innovation, including a significant growth of glass bottled water sales. Agthia increased UAE glass bottle water capacity, which will enable the Group to triple its production of glass bottled water in the mid-term in response to strong consumer demand. Additionally, continuous improvements in customer service quality within the Home and Office Delivery business led to strong growth of 9.9 percent year-on-year during the period. International business revenue also increased by 3.5% year-on-year, with notable performance in Oman and Kuwait.

Agri-Business

Revenue increased 25.4 percent year-on-year (+5.2 percent excluding one-off wheat trading in Q1 2024). This was primarily driven by strong performance in Feed, which reflected effective sales execution, performance in Abu Dhabi Agriculture and Food Safety Authority’s compound feed program, and related new product development.

Group net profit grew 31.8 percent year-on-year to AED 190.0 million during H1 2024, with net profit margin standing at 7.5 percent, reflecting a 98bps expansion, notwithstanding FX headwinds and the introduction of income tax in the UAE.

Strong balance sheet

Agthia’s balance sheet remains robust with cash and equivalents of AED 0.4 billion and liquidity of AED 1.8 billion. The Group’s net debt to EBITDA ratio of 1.6x (net debt of AED 1.2 billion) was slightly up compared to December 2023.

Proposed cash dividends

In line with the group’s semi-annual dividend policy, Agthia’s board of directors has recommended the distribution of AED 85.7 million as an interim cash dividend (equivalent to 10.31 fils per share). This represents a 25 percent year-on-year increase. The dividend payment is subject to shareholder approval at Agthia’s next AGM.

Full-year guidance maintained

Considering both the ongoing momentum across Agthia’s business and the continuing impact of currency headwinds on the Group’s Egyptian operations, Agthia anticipates full-year 2024 revenue growth between 10 percent and 12 percent, with a 40-60bps increase in EBITDA margin and a 30-50bps increase in Group net profit margin.

Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said: “Agthia continues to deliver strong performance, solidifying our growth momentum in the first half of the year. Our unwavering commitment to strengthening our business and achieving our long-term goals remains clear. This quarter's results underscore our resilience and strategic focus on driving sustainable value across our diverse portfolio. Going forward, we are well-positioned to seize opportunities in the MENA region and beyond, leveraging our strengths in innovation, digitalization, and operational excellence.”

Alan Smith, group chief executive officer of Agthia Group, said: “Agthia delivered solid top and bottom-line results in the first half of the year, reaffirming our ability to navigate effectively challenging and dynamic operating environments. Our teams maintained their focus and agility in the execution of our long-term growth strategy, and we continue our efforts to drive sustainable long-term growth by investing in our brands, capturing synergies and driving efficiency gains. 

“In early July, we officially launched our state-of-the-art protein facility in Jeddah, solidifying our position and establishing one of the key growth drivers for Agthia in the largest market in the GCC. The results of the first half of the year build a strong foundation for Agthia, and we reiterate our full-year guidance. We are also pleased to confirm our first interim dividend payment, intending to return approximately AED 85.7 million to shareholders in September 2024.”


‘Jeddah Construct’ spotlights innovative products and services

‘Jeddah Construct’ spotlights innovative products and services
Updated 01 October 2024
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‘Jeddah Construct’ spotlights innovative products and services

‘Jeddah Construct’ spotlights innovative products and services

The inaugural edition of Jeddah Construct, the largest construction event in the western province, opened its doors, welcoming visitors until Oct. 1 at the Jeddah International Exhibition and Convention Center.

Powered by Big 5 Construct Saudi, the event was opened by a delegation from the Jeddah Center for Exhibitions and Events, with Ben Greenish, executive vice president — construction at dmg events, and Muhammed Kazi, senior vice president — construction at dmg events, joining the opening ceremony.

“We are thrilled to open the first edition of Jeddah Construct, building on our decade-long legacy in the Kingdom of Saudi Arabia with Big 5 Construct Saudi. The event covers the entire construction value chain, bringing together 200 exhibitors from over 25 countries and presenting a wide range of products, services, systems and solutions. With $613 billion worth of mega-projects driving Jeddah’s built environment forward, we are looking forward to supporting the evolving demands of Jeddah’s construction landscape,” said Kazi. 
He added: “The event features products and services under 16 key product sectors, hosting a blend of local and international exhibitors and providing a veritable platform for business engagements.”

The exhibition halls featured key steel exhibitors at the forefront of structural innovation. Exhibitors presented a wide range of advanced steel products, from cutting-edge materials to sustainable structural systems, designed to meet the growing demands of Jeddah’s construction sector.

One of the key players and leaders in the steel tubes and pipes market locally and regionally, Al-Yamamah Steel Industries presented a range of steel tubes for structural purposes, scaffolding tubes and steel pipes for pressure services. Kirby Building Systems showcased a wide range of customized, cost-effective steel building solutions, which included pre-engineered steel building, sandwich panels, curved beams, deep decking panels as well as standing seam panels renowned for their longevity and durability.

Other steel giants showcasing their products and systems included Himalaya Steel Group, Framecad International, Cypex, Baz Steel and Icon Egypt.

The outdoor exhibition area at Jeddah Construct opened with a display of the top heavy machinery exhibitors, offering attendees an impressive showcase of the latest in construction equipment and technologies.

XCMG Trading Company, one of the largest construction machinery companies in China, presented its customized series of skid-steer loaders, excavators and backhoe loaders, specialized in the early stages of construction, including digging, hauling and excavating. Another exhibitor, NAZ Industries, brought its latest tipper and flatbed trailers and semi-trailers with lower weight, which streamline operations, reduce downtime and enhance productivity, meeting the unique needs of mega-construction projects.

Other exhibitors included Essa Dakhil Allah Almarwani Trading Company, Alton Trading Company and Al-Wady Al-Akhdar Al-Momaiaz Factory.

Day 1 of CPD-certified Construct Talks, sponsored by Himalaya Steel, welcomed industry leaders, subject matter experts and decision-makers to share practical insights and innovative strategies addressing the pressing needs and emerging trends of the construction industry in Jeddah.

In one of the sessions, Khalil Al-Saeedi, executive director of program delivery at Saudi Entertainment Ventures, stressed the importance of early collaboration among project teams for effective project planning and resource allocation, crucial for the successful delivery of projects. Fellow speaker Mohammed Abdel Jawad, project management expert and committee member at Project Management Institute — Saudi Arabia, shared valuable insights on the RACI matrix, which is imperative for resource assignments while visualizing roles and responsibilities within project teams.

The opening day featured an industry networking session hosted by the Chartered Institute of Building, bringing together construction stakeholders, professionals and thought leaders to engage in discussions and expand their professional network with some of the industry’s leading figures.


Al-Masane mine expansion to boost zinc & copper production

Al-Masane mine expansion to boost zinc & copper production
Updated 30 September 2024
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Al-Masane mine expansion to boost zinc & copper production

Al-Masane mine expansion to boost zinc & copper production

As part of its ongoing commitment to achieving sustainable growth, and in line with its strategic growth plan for 2025, Al-Masane Al-Kobra Mining Co. has completed the development of the Moyeath underground zinc and copper orebody and the Moyeath process plant. The development will contribute 400,000 tonnes per year of additional ore processing capacity to the business.

AMAK is a pioneer in the Saudi mining industry, and one of the largest producers of zinc, copper, gold and silver. The expansion project was inaugurated by Najran Province Gov. Jalawi bin Abdulaziz bin Musaed, on July 26, 2022.

The newly established processing unit, built to the highest global technical and quality standards, significantly improves the efficiency and quality of zinc and copper concentrate production. The total concentrate production for the business is expected to increase by approximately 80 percent for zinc and 40 percent for copper.

The total combined production will be 30-40 kt of copper concentrate, 60-80 kt of zinc concentrate, 25-35 koz of gold doré, and 40-50 koz of silver doré. Zinc and copper concentrates also contain approximately 10 koz of gold and 450-500 koz of silver.

AMAK CEO Geoff Day said: “Launched in 2022, this milestone project marks a pivotal achievement in our journey. Today, we proudly celebrate the completion of this expansion project — another value-adding step toward realizing our strategic growth objectives. It stands as a testament to our unwavering commitment to enhancing operational efficiency and unlocking new growth opportunities for the future, in line with the Kingdom’s Vision 2030.”

The improved operational efficiency and additional production capacity was designed to lower production costs, optimize output, and ultimately contribute to stronger margins, positioning the company for sustained growth and financial stability in the coming quarters.

The project’s completion aligns with AMAK’s strategic growth plan for 2025, announced earlier this month. This strategy focuses on several key pillars, including enhancing current growth opportunities, expanding existing primary and secondary sites, exploring new business opportunities such as launching a specialized exploration drilling company, acquiring additional exploration tenements, followed by efficiently assessing the new tenements and fast tracking them into development.


AlForno: a modern bistro experience in the heart of Makkah

AlForno: a modern bistro experience in the heart of Makkah
Updated 30 September 2024
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AlForno: a modern bistro experience in the heart of Makkah

AlForno: a modern bistro experience in the heart of Makkah

The city of Makkah witnessed a special event last week, with the grand opening of AlForno, a traditional yet modern bistro providing an exceptional dining experience that blends authenticity with innovation. The bistro is located in Jabal Omar Hyatt Regency Makkah, which is a one-minute walk from Al-Masjid Al-Haram.

The opening was attended by a diverse group of social media influencers, food enthusiasts, prominent journalists, and business leaders, all eager to discover the bistro’s unique dishes.

The evening began with a warm welcome for guests featuring traditional Hijazi singing (Al-Jasis), accompanied by welcome drinks and local desserts reflecting a variety of cultures while celebrating Saudi heritage. The ceremonial ribbon-cutting was performed by the hotel’s general manager and staff, along with several guests, adding a special touch to the event.

The opening ceremony included a dinner featuring a variety of innovative dishes prepared using locally sourced ingredients. The menu was carefully crafted to combine traditional flavors with modern techniques, providing guests with a truly unique dining experience. A special presentation was made to guests about the bistro’s philosophy and vision for delivering exceptional culinary experiences. Attendees had the opportunity to taste several signature dishes created by experienced professional chefs. Each dish tells a story inspired by the cultural heritage of Saudi Arabia, with a contemporary twist that reflects global influences.

The bistro’s vision aligns with the goals of Saudi Arabia’s Vision 2030, to enhance the culture of tourism and promote cultural experiences within the Kingdom. AlForno seeks to be a comprehensive cultural and tourist hub, bringing together pilgrims and travelers to share stories, and experiences, and create unforgettable memories.

The bistro’s ambiance is warm and welcoming, featuring an interior design that combines modernity with tradition, making every guest feel at home. AlForno also provides a space for social interaction, allowing guests to enjoy shared experiences while dining.


Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom

Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom
Updated 30 September 2024
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Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom

Gulf Air inks deal with Almatar in first collaboration with OTA in Kingdom

Gulf Air, the national carrier of Bahrain, has entered into a strategic partnership with Almatar, a Saudi travel technology company, to enhance digital operations between the two entities.

As part of the partnership, Gulf Air will integrate its new distribution capability API with Almatar’s booking platform, enabling Almatar to offer Gulf Air’s products and services, such as seat selection, additional baggage options, refunds, and reissue services. This will provide travelers with a more advanced, flexible, and seamless booking experience.

The partnership marks a key milestone in the digital transformation journeys of both Gulf Air and Almatar. It makes Almatar the first online travel agency in Saudi Arabia to collaborate with Gulf Air, setting a new industry standard.

Jeffrey Goh, CEO of Gulf Air Group, said: “We are excited about this partnership that opens new digital distribution avenues for Gulf Air products. The integration of the NDC system with Almatar’s platform will enhance operational efficiency and improve the way the airline delivers exceptional services to our customers. Gulf Air is dedicated to adopting modern technology to offer flexible and user-friendly travel solutions, solidifying our competitive edge in regional and global markets.”

Youssef Abdullah Al-Rajhi, chairman of Almatar, added: “This agreement is a landmark in Almatar’s journey as a digital travel solutions provider. We are proud to collaborate with Gulf Air, the national carrier of Bahrain, one of the most reputable airlines in the region. We are also the first OTA company in Saudi Arabia to partner with Gulf Air, and the integration of NDC will enable us to expand our services and provide an advanced travel experience to our customers.”

He said the partnership with Gulf Air is a strategic move that strengthens Almatar’s market presence and helps it serve a broader customer base. It will significantly enhance the efficiency of online bookings and allow it to deliver high-quality services that meet the increasing demands of the travel industry.


GEN PLUS Group appoints Wael Mahdi as chief growth officer for MENA

GEN PLUS Group appointed Wael Mahdi as chief growth officer for the Middle East and North Africa region.
GEN PLUS Group appointed Wael Mahdi as chief growth officer for the Middle East and North Africa region.
Updated 30 September 2024
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GEN PLUS Group appoints Wael Mahdi as chief growth officer for MENA

GEN PLUS Group appointed Wael Mahdi as chief growth officer for the Middle East and North Africa region.

GEN PLUS Group, a global independent group of agencies, has announced the appointment of Wael Mahdi as chief growth officer for the Middle East and North Africa region. This key leadership role underscores the group’s commitment to expanding its presence in the region, with a particular focus on Saudi Arabia and its Vision 2030 transformation. GEN PLUS Group recently established its regional headquarters in Riyadh to support this mission.

Wael Mahdi brings over 20 years of experience in communications, media and journalism to his new role. He holds a bachelor of arts in political economy from the American University in Cairo and has held various senior positions at prominent organizations such as NEOM and the Saudi Research and Media Group, where he made a significant contribution across multiple outlets. His career also includes contributions to respected publications like Arabian Business, Alwatan, The National, and Asharq Alawsat, as well as nearly a decade with Bloomberg, where he covered business and energy news across the GCC.

Sofia Panayiotaki, CEO of GEN PLUS Group, said: “We are excited to welcome Wael Mahdi to our leadership team. His extensive experience in strategic communications and content creation will be invaluable as we strengthen our role in supporting Saudi Vision 2030 and helping brands in the Kingdom and the MENA region grow and thrive.”

Mahdi added: “I am thrilled to join GEN PLUS Group at such a pivotal time of growth and transformation in the region. I look forward to contributing to the group’s mission by driving impactful content and narratives that align with Saudi Arabia’s ambitious goals to spur economic activity and attract global investors.”

GEN PLUS Group is a global leader in integrated communications and holistic brand storytelling. With a diverse network of over 3,000 experts representing 67 nationalities, the group operates in more than 100 countries. GEN PLUS Group provides a comprehensive suite of services, including creative marketing, PR, digital strategy, social media and content development, all driven by its signature “PLUS” philosophy.

In Saudi Arabia, GEN PLUS Group empowers brands, and partners with groundbreaking projects and initiatives to support Saudi Vision 2030.