#Abu Dhabi #UAE #dividend increase #Financial Growth #Agthia Group

Agthia's Financial Strength in H1 2026

Agthia Group PJSC, a leader in the regional food and beverage sector, has unveiled impressive results for the first half of 2026. The company's multifaceted transformation efforts have begun to yield positive outcomes, allowing Agthia to report a 14.4% increase in its interim dividend and a substantial improvement in its overall financial health.

A Comprehensive Review of Financials

During the first six months of 2026, Agthia reported total revenues of 2.6 billion AED, reflecting an annual growth of 7.4%. This revenue increase was significantly bolstered by extraordinary sales under the UAE's food security program. Moreover, the company's EBITDA surged by 35.8% to reach 310.5 million AED, with an EBITDA margin increasing by 250 basis points to 11.9%. The net profit was remarkable as well, hitting 121.4 million AED—a staggering 147.4% year-on-year growth.

In the second quarter alone, Agthia's revenues rose by 11.9% to 1.3 billion AED, while EBITDA soared by 172.5% to 117.2 million AED. The net profit for this quarter stood at 24.5 million AED, underlining the impactful changes initiated by the company in its operational strategies.

Positive Cash Flow and Debt Management

One of the key highlights was the significant free cash flow, which reached 521.4 million AED, a striking turnaround from the previous year’s cash outflow. Agthia also improved its net debt-to-EBITDA ratio from 2.9x at the end of 2025 to 1.8x, showcasing its aggressive debt management strategy. By the end of H1 2026, the company held 869.6 million AED in cash.

Growth Across Key Segments

Agthia’s growth was not merely a result of external factors; the company made substantial headway in its internal business segments. Notably, the water and food division witnessed a remarkable revenue increase of 38.9% in Q2, primarily attributed to the Al Ain brand reaching the significant milestone of 1 billion AED in revenue. In the protein and frozen foods segment, Nabil led the charge with a growth of 32.5%, while Atyab managed an 8.1% increase in sales year-on-year.

Agribusiness also outperformed expectations with an 11.0% increase in sales, driven by high demand for feed, including a notable 23.3% rise in Agrivita feed sales. Snack segment operations are focusing on transforming businesses like Al Foah and BMB to build long-term value, while Abu Auf maintained a strong growth trajectory with a 23.7% increase in Q2 2026.

Shareholder Confidence Reflected in Dividends

Agthia's Board of Directors recommended an interim cash dividend of 11,792 fils per share for the six-month period ending June 30, 2026, marking a 14.4% increase from the previous year. This consistent rise in dividends illustrates the disciplined management and long-term value-driven approach of the group.

Khalifa Sultan Al Suwaidi, Chairman of Agthia, noted that the dividend increase confirms the board's confidence in the company's long-term prospects despite external challenges. Salmeen Alameri, the CEO, emphasized the tangible results of the transformation initiated a year ago, delivering higher profits, expanding margins, and improved cash generation, all essential for a solid financial foundation.

Commitment to Sustainability

In addition to financial metrics, Agthia is also prioritizing sustainability, achieving a 26.7% reduction in its emissions year-on-year. This commitment not only aligns with the company's operational goals but also reinforces its role in advancing the national food security agenda at a critical time.

Jeroen Nijs, the company's CFO, concluded by affirming Agthia's strong financial positioning, prepared to navigate regional disruptions and drive strategic transformation initiatives while enhancing profitability for its shareholders.