Abu Dhabi F&B giant Agthia zooms to a healthy Dh3b in 2021 revenues

Dubai: Agthia, the UAE’s biggest food and beverage company, hit revenues of Dh3 billion plus for 2021 from a 49 per cent increase on 2020, helped by a series of acquisitions outside of its home market. Net profit for the period was at Dh216 million against 2020's Dh34.5 million, as demand for its brands picked up after 2020’s COVID-19 disruptions.

Among its categories, protein and snacking provided heft to the 2021 numbers with Dh1.07 bilion, and this is also where the acquisitions of regional businesses played a part. The consumer business’ share to the Agthia’s top-line nearly doubled versus 2020 numbers, benefitting from the widening of the revenue streams. On the downside, profitability was hampered by global inflation in grain prices, while freight costs continued to put pressure on margins, "which we were addressing through operational efficiencies and pricing adjustments".

Two of Agthia's recent deals – for Nabil Foods and Atyab – provided revenue support for nine- and five months, respectively. “In terms of integration, the newly added entities promote greater diversity of our portfolio to create a more dynamic and agile business model,” said Alan Smith, CEO.

The Abu Dhabi group’s assets were at Dh6.4 billion as of end December last, increasing significantly following the financial consolidation of Al Foah, Al Faysal Bakery, Nabil Foods, Atyab, and BMB Group.