Agthia Reports Strong Financial Results and Increased Dividend for H1 2026
Agthia Group PJSC, a key player in the food and beverage industry in the region, has recently released its financial results for the first half of 2026, showcasing notable improvements driven by strategic restructuring efforts. The company's performance highlights a growing cash generation capacity, a healthier balance sheet, and an interim dividend increase of 14.4%.
In the first half of 2026, Agthia achieved a significant revenue increase of 7.4%, reaching 2.6 billion AED compared to the same period last year. This growth was largely influenced by one-off sales tied to the UAE's food security program. Notably, the company reported an EBITDA rise of 35.8%, totaling 310.5 million AED, elevating its EBITDA margin by 250 basis points to 11.9%. The net profit soared to 121.4 million AED, marking a remarkable 147.4% increase year-on-year.
The second quarter alone saw a revenue surge of 11.9%, with earnings climbing to 1.3 billion AED. EBITDA for this quarter jumped by 172.5% to 117.2 million AED, and the net profit reached 24.5 million AED. Significantly, Agthia has turned around its cash flow situation, generating 521.4 million AED in free cash flow, a remarkable recovery from the outflows seen in the previous year.
The positive financial trends can be attributed to the effective implementation of Agthia's restructuring strategy, which included portfolio realignment alongside coping with external challenges and cost pressures. The core business segments, particularly in water and food, have demonstrated robust growth during this period. Al Ain, Agthia's flagship bottled water brand, has shown remarkable performance, capturing an additional 2.0 percentage points of market share in the bottled water segment.
Protein and frozen food sectors also witnessed impressive growth, with Nabil leading the charge with a 32.5% rise. The Agri-Business segment surged due to high demand for animal feed, with Agrivitafeed reporting a 23.3% increase in revenue.
In terms of transformation, Agthia continues to focus on the restructuring of its Snacking division, laying down foundations for long-term value creation. The company maintained its growth trajectory in its Abu business, which noted a 23.7% increase in revenue year-over-year.
The board of directors has proposed an interim cash dividend of 11.792 fils per share, reflecting a 14.4% increase from the previous year. This marks the second consecutive period of dividend hikes, signaling the board's confidence in Agthia's long-term value creation. Chairman Khalifa Sultan Al Suwaidi emphasized that these increased payouts signify the disciplined management of Agthia and its ability to provide returns to shareholders even amidst a challenging economic landscape.
Managing Director Salmeen Alameri noted that the transformations initiated in 2025 are yielding tangible results, contributing to higher earnings, improved margins, and enhanced cash generation, which in turn fortifies the company's financial standing during pivotal times.
Furthermore, Agthia's Chief Financial Officer, Jeroen Nijs, pointed out the substantial improvement in the company’s financial profile, with a reduction in net debt to EBITDA ratio from 2.9x to 1.8x. With liquid assets of 870 million AED, Agthia is well-prepared to navigate ongoing regional challenges and continue its strategic transformation initiatives aiming for enhanced shareholder returns.
In conclusion, Agthia Group’s progress in the H1 2026 results not only highlights its resilience but sets a positive tone for future endeavors, reinforcing its position as a market leader and its commitment to pursuing growth while ensuring shareholder satisfaction.
Financial Performance Overview
In the first half of 2026, Agthia achieved a significant revenue increase of 7.4%, reaching 2.6 billion AED compared to the same period last year. This growth was largely influenced by one-off sales tied to the UAE's food security program. Notably, the company reported an EBITDA rise of 35.8%, totaling 310.5 million AED, elevating its EBITDA margin by 250 basis points to 11.9%. The net profit soared to 121.4 million AED, marking a remarkable 147.4% increase year-on-year.
The second quarter alone saw a revenue surge of 11.9%, with earnings climbing to 1.3 billion AED. EBITDA for this quarter jumped by 172.5% to 117.2 million AED, and the net profit reached 24.5 million AED. Significantly, Agthia has turned around its cash flow situation, generating 521.4 million AED in free cash flow, a remarkable recovery from the outflows seen in the previous year.
Strategic Initiatives and Growth Areas
The positive financial trends can be attributed to the effective implementation of Agthia's restructuring strategy, which included portfolio realignment alongside coping with external challenges and cost pressures. The core business segments, particularly in water and food, have demonstrated robust growth during this period. Al Ain, Agthia's flagship bottled water brand, has shown remarkable performance, capturing an additional 2.0 percentage points of market share in the bottled water segment.
Protein and frozen food sectors also witnessed impressive growth, with Nabil leading the charge with a 32.5% rise. The Agri-Business segment surged due to high demand for animal feed, with Agrivitafeed reporting a 23.3% increase in revenue.
In terms of transformation, Agthia continues to focus on the restructuring of its Snacking division, laying down foundations for long-term value creation. The company maintained its growth trajectory in its Abu business, which noted a 23.7% increase in revenue year-over-year.
Dividend and Future Outlook
The board of directors has proposed an interim cash dividend of 11.792 fils per share, reflecting a 14.4% increase from the previous year. This marks the second consecutive period of dividend hikes, signaling the board's confidence in Agthia's long-term value creation. Chairman Khalifa Sultan Al Suwaidi emphasized that these increased payouts signify the disciplined management of Agthia and its ability to provide returns to shareholders even amidst a challenging economic landscape.
Managing Director Salmeen Alameri noted that the transformations initiated in 2025 are yielding tangible results, contributing to higher earnings, improved margins, and enhanced cash generation, which in turn fortifies the company's financial standing during pivotal times.
Furthermore, Agthia's Chief Financial Officer, Jeroen Nijs, pointed out the substantial improvement in the company’s financial profile, with a reduction in net debt to EBITDA ratio from 2.9x to 1.8x. With liquid assets of 870 million AED, Agthia is well-prepared to navigate ongoing regional challenges and continue its strategic transformation initiatives aiming for enhanced shareholder returns.
In conclusion, Agthia Group’s progress in the H1 2026 results not only highlights its resilience but sets a positive tone for future endeavors, reinforcing its position as a market leader and its commitment to pursuing growth while ensuring shareholder satisfaction.
Topics Consumer Products & Retail）
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