UAE food giant Agthia reveals how it handled supply chain pressure to deliver Q1-2026 profits

Dubai: ADQ subsidiary Agthia Group said its bottled water, food and agri-business operations helped support growth in the first quarter of 2026. This is as businesses across the region dealt with geopolitical tensions, shipping disruptions and pressure on logistics networks.

The Abu Dhabi-based food and beverage company reported a 3.3 per cent rise in net revenue to Dh1.3 billion during the quarter, while EBITDA increased 4.1 per cent to Dh193.3 million. Net profit climbed 12.5 per cent year-on-year to Dh96.9 million, according to official figures.

The ADX-listed food giant said its performance was supported by 'stronger margins, operational continuity and growth across core business segments,' even at the peak of the offensive stage of the US-Israel-Iran war in March 2026.

Agthia Managing Director and CEO Salmeen Alameri told Gulf News the company’s ability to maintain supply and keep operations running across markets was one of the defining features of the quarter.

“What stood out most positively was the strength and consistency of execution across the Group,” Alameri said.

“In a more complex regional context, our teams stayed focused, our operations remained fully functional, and we maintained uninterrupted supply across our markets.”

He also said that agility and preparedness are no longer optional things for businesses today.

“The speed at which regional pressures can affect logistics and operating conditions is always a reminder that agility and preparedness are not optional, they are fundamental to how we run the business,” he said.

Water and food businesses lead growth

Agthia said its water and food division remained a major contributor during the quarter, helped by strong performance in UAE bottled water and home and office services.

Protein and frozen food operations also recorded progress, while agri-business continued supporting overall group performance, including through food security-related programmes in the UAE.

The company said its snacking division is still undergoing what it described as an “active reset”, which the company says it is aimed at improving margins and future growth quality, without providing additional details.

However, the group also delivered a 22.5 per cent increase in e-commerce revenue, which now accounted for 7.2 per cent of underlying revenue.

Consumer demand  

Alameri said consumer demand patterns across the UAE and wider GCC did not change sharply during the conflict period, although buyers became more focused on reliability and availability.

“What we saw was a market that remained active, but understandably more attentive to reliability, availability, and trusted brands,” he said.

“In periods like this, continuity matters.”

Logistics, sourcing pressures

Like many regional companies with cross-border operations, Agthia said it had to closely manage sourcing, shipping routes, inventory and logistics during the quarter.

Alameri said the company’s broad operating footprint and inventory levels helped it avoid disruptions.

“The environment required careful management of sourcing, logistics, inventory, and routing,” he said.

“That said, Agthia was well positioned to navigate this period because of our diversified portfolio, strong operating footprint, high inventory levels and disciplined planning processes.”

The company said it remained operational throughout the quarter and continued supplying customers across markets.

What does 2026 look like

Agthia said transformation projects across the business are beginning to contribute more visibly to operational performance and margins.

Alameri said innovation initiatives had not slowed despite external pressures.

“In our view, innovation becomes even more important in periods of pressure because it supports relevance, differentiation, and future growth,” he said.

He added that innovation contributed “meaningfully to growth across the portfolio” during the first quarter.

Agthia also said the second phase of its Saudi protein facility is now operational, adding further production capacity.

Looking ahead, Alameri said the company remains focused on improving operating performance, margins and capital allocation by the end of 2026.

“Success by the end of 2026 means more than delivering growth,” he said.

“It means showing that we have continued to improve the quality of the business.”