Agthia proposes 14.4% higher dividend after H1 profit jumps 147%

Dubai: Abu Dhabi-based Agthia Group has recommended a 14.4% increase in its interim dividend after first-half net profit more than doubled and cash generation improved.

The food and beverage company proposed an interim cash dividend of 11.792 fils per share for the six months ended June 30, marking a second consecutive increase in shareholder returns.

Net profit rose 147.4% year-on-year to Dh121.4 million during the first half of 2026, while revenue increased 7.4% to Dh2.6 billion.

Earnings before interest, tax, depreciation and amortisation climbed 35.8% to Dh310.5 million, with the EBITDA margin expanding by 250 basis points to 11.9%.

Revenue growth included one-off sales through the UAE food security programme, reflecting the group’s role in supporting national food supplies.

Cash flow strengthens balance sheet

Agthia generated Dh521.4 million in free cash flow during the first half, reversing an outflow recorded a year earlier.

The group reduced its net debt-to-EBITDA ratio to 1.8 times from 2.9 times at the end of December 2025 and closed June with Dh869.6 million in cash.

Total assets increased to Dh6.5 billion by the end of the reporting period.

The proposed increase follows a 10% rise in the dividend recommended for the second half of 2025.

Second-quarter earnings improve

Agthia reported second-quarter revenue of Dh1.3 billion, representing an increase of 11.9% from the same period last year.

Quarterly EBITDA rose 172.5% to Dh117.2 million, while the EBITDA margin expanded by 542 basis points to 9.2%.

Net profit for the three-month period reached Dh24.5 million.

Water and food lead growth

Revenue from Agthia’s Water and Food division increased 38.9% during the second quarter.

Al Ain, which Agthia described as its first billion-dirham brand, increased its bottled water value market share by two percentage points compared with the same period last year.

The Protein and Frozen division recorded revenue growth of 22%, led by a 32.5% increase at Nabil. Atyab revenue rose 8.1%, while production continued to increase at the group’s Saudi protein facility.

Agri-Business revenue advanced 11% following stronger demand for animal feed, with Agrivita feed sales increasing 23.3%.

Abu Auf maintained its expansion during the quarter, reporting a 23.7% increase in revenue, while the group continued restructuring work across its Al Foah and BMB snacking businesses.