UAE food giant Agthia confirms first interim dividend after H1-2024 profit surges 32%
ADX-listed Agthia's board proposes 10.31 fils a share as payout for H1-24
Dubai: The Abu Dhabi F&B giant Agthia plans to release Dh85.7 million – or 10.31 fils a share – as interim dividend for H1-2024 after a healthy 14.7 per cent revenue rise to Dh2.52 billion. There was higher growth on the net profit side, at 31.8 per cent, to Dh190 million.
Incidentally, this will be the first interim dividend payment by the ADX-listed company. The stock has gained more than 30 per cent year-to-date.
Agthia shareholders will also be liking the margins generated by the company for the period, at 7.5 per cent from a 98 basis point expansion. This came ‘notwithstanding FX headwinds (at its Egypt operations) and the introduction of income (corporate) tax in the UAE’, the company said in a statement.
“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,” said Alan Smith, Group CEO.
“We continue our efforts to drive sustainable long-term growth by investing in our brands, capturing synergies and driving efficiency gains.”
More coming in from Saudi Arabia
Going forward, the UAE firm will be looking to generate more gains from its overseas operations. In July, it formally launched a Dh90 million protein facility in Jeddah, thus '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," said Smith.
We continue our efforts to drive sustainable long-term growth by investing in our brands, capturing synergies and driving efficiency gains
Agthia already has an extensive presence in the Egyptian marketplace, where despite the currency there going through a devaluation, its businesses delivered 20.3 per cent year-on-year revenue growth in AED terms during the reporting period.
Snacking drives up numbers
Agthia customers in the UAE and elsewhere sure are snacking a lot more. The UAE company's snacking operations drove revenue gains of 19.5 per cent year-on-year, led by the 'strong performance of the coffee segment'. Its Abu Auf retail brand 'continued to gain both volume and value share in the local market for premium-branded coffee in Egypt'.
In the dates category, Agthia kept its 'strong growth' trajectory, helped by 'innovations' across mid and high-value ranges. Plus, there was an 'expansion in date varieties and significant value growth across retail channels in the UAE and internationally (India, Bangladesh, and Morocco, etc).