#Abu Dhabi #UAE #revenue growth #EBITDA #Agthia Group

Agthia Group Reports Robust Revenue Growth

In a recent announcement, Agthia Group PJSC (AGTHIA:UH), one of the Middle East's prominent food and beverage companies, has reported a notable increase in revenue for the third quarter of 2026. Despite facing a challenging operating environment, characterized by rising costs, the company showcased resilience and strategic fortitude in its financial performance.

Group Financial Performance

According to the earnings report, Agthia witnessed a remarkable 14.4% increase in revenue from the previous year, reaching AED 1.3 billion for the third quarter. This growth includes AED 104.7 million attributed to one-off sales. When viewed from an underlying perspective, the company's growth was a solid 5.2%. The strong execution of business strategies led to an impressive boost in profitability, with EBITDA surging by 39.0% to AED 123.1 million. Furthermore, net profit jumped to AED 33.2 million, a significant rise from the previous year’s figure of AED 4.1 million, impacted by impairment charges in the Snacking segment.

Over the first nine months of 2026, Agthia's revenue recorded a growth of 9.6%, totaling AED 3.9 billion, with EBITDA rising 36.7% to AED 433.6 million. Notably, net profit has nearly tripled, reaching AED 154.6 million. Agthia's financial standing remains robust, reflected in a positive free cash flow of AED 212.1 million for this nine-month period, a turnaround from an outflow during the same period last year. The company’s net debt-to-EBITDA ratio improved to 2.4x, down from 2.9x at the end of 2025, while cash reserves stood at AED 536.2 million.

Segment Performance

Diving into the individual performance of its core segments, Agthia's Water and Food categories reported a remarkable 36.7% growth in revenue, significantly aided by one-off food security sales in Q3 2026. Excluding these one-off sales, revenue from the UAE Water segment still demonstrated a strong ascent of 8.0%, led by a rise of 12.9% in Home and Office Services, with notable support in international markets from Turkey and Kuwait. However, increased costs related to PET, freight, and distribution have exerted pressure on segment margins.

In the Agri-Business sector, a 10.5% revenue growth was realized, with feed sales increasing by 18.3%. Nevertheless, the segment faced challenges with EBITDA declining by 39.3% to AED 31.4 million, primarily due to escalating input costs and higher distribution expenses.

On a brighter note, the Snacking category has shown robust profitability growth, with improvements across all businesses in the third quarter leading to an expansion of gross margin by 613 basis points. Abu Auf, a major brand under Agthia, experienced growth of 21.7% in revenue, along with a net addition of 69 stores this year, capturing an additional 1.0 percentage point of the market share in ground coffee. Furthermore, segment EBITDA stood at AED 23.8 million, a turn around from a loss experienced in the previous year.

The Protein and Frozen division reported a 25.1% revenue growth in Q3 2026, attributed to strong performance across all businesses, particularly Nabil, which saw a growth of 25.3%. The recently expanded Saudi Arabia facility has significantly boosted protein sales in the kingdom, marking a notable achievement for Agthia.

Future Outlook

Chairman Khalifa Sultan Al Suwaidi emphasized the importance of resilient food companies during the challenging times faced by regional supply chains, commending Agthia’s adaptability and commitment to its markets. He expressed his satisfaction with the management's ongoing transformation efforts, which focus on creating long-term value for shareholders and the communities served.

Meanwhile, Salmeen Alameri, Managing Director and CEO of Agthia Group, reiterated the company's progress in strengthening its portfolio and operational infrastructure. He acknowledged the challenges posed by rising input and logistics costs, affirming that the organization is undertaking decisive actions to safeguard its interests moving forward. Agthia's investment in innovation, data analysis, and digital capabilities will be pivotal in navigating the current volatility in the market. With strong foundations now established, Agthia appears well-positioned to continue driving growth despite ongoing economic challenges.