Agthia Group’s Net Revenue Grows to $1.24 Billion in 2023

The Abu Dhabi-based Agthia Group, one of the leading food and beverage companies in the region, reported a strong fiscal performance in 2023, surpassing guidance ranges with Group net revenue growing over 12% year-on-year to reach $1.24 billion. The Group’s EBITDA margin expanded 113bps to 15.1%, with strong growth in profitability from Snacking and Water & Food.

The Group also reported a growth in underlying Group net profit margin of 80bps to 7.5% and its balance sheet remained robust with cash and equivalents of $163.37 million, the company said in a filing with Abu Dhabi Securities Exchange.

At the annual general meeting of Agthia Group, which was held in Abu Dhabi on Wednesday, the shareholders approved the Group’s financial results for the fiscal year ended 31 December 2023, in addition to all other recommendations put forth by the Board of Directors, including the allocation of cash and stock dividends.

The Board of Directors had earlier recommended a cash dividend payment of 18.5 fils per share for the year, in addition to bonus shares at the rate of 5% of share capital, on the basis of Agthia’s strong financial performance in 2023.

The Group has already paid an interim cash dividend of 8.25 fils per share ($17.78 million) for the six months ending on 30 June 2023, aligning with its semi-annual dividend policy. Total dividends distributed for the year amounted to $39.89 million, reflecting a 12% increase compared to the cash dividend distributed in 2022.

More Benefits for Shareholders

Agthia Group Chairman Khalifa Sultan Al Suwaidi said that he was proud to witness the tangible outcomes of Agthia’s strong financial performance in 2023. Through the provision of both cash and stock dividends, the company anticipates enabling its shareholders to further benefit from its financial success and growth.

“This strategic choice aligns with our enduring commitment to prioritising shareholder value and to realizing our strategic vision beyond 2025. We are continually inspired by the visionary leadership of the UAE, which constantly challenges norms and demonstrates the extraordinary results achievable through a clear vision and flawless execution,” Al Suwaidi noted.

Agthia Group’s CEO Alan Smith said that the company delivered against all its key growth drivers and executed with a consistent focus on supporting our go-to-market teams delivering for its customers, and leading with innovation to accelerate our growth, now and in the future in 2023.

He also said that Agthia has entered the new year with very strong foundations, and clear strategic growth plans in place. While the macroeconomic and geopolitical contexts are shifting, our business is now well-positioned and more resilient than ever.

“This gives us confidence in our ability to navigate unforeseen disruptions and we remain committed to expanding our capabilities, driving innovation and efficiencies, fostering growth, and advancing sustainable value creation for all stakeholders,” Smith added.