#Abu Dhabi #UAE #beverage industry #Agthia Group #UAE Food

Agthia Group Thrives with Impressive Revenue Growth Amid Economic Challenges

In the rapidly evolving food and beverage industry, Agthia Group PJSC has showcased remarkable resilience and financial performance. Reporting its third-quarter results for 2026, the company, recognized as a key player in the UAE market, has effectively navigated a challenging economic landscape characterized by increasing operational costs and supply chain disruptions.

Financial Performance Highlights

Agthia Group's financial results reflect a continued commitment to growth and profitability. In the third quarter of 2026, the company achieved a revenue milestone, reaching AED 1.3 billion. This figure marks a staggering 14.4% increase compared to the same period last year, even after accounting for AED 104.7 million in one-off sales. The underlying growth rate stands at a robust 5.2%, a testament to the strategic measures implemented by management.

The company's profitability metrics further highlight its strong performance. EBITDA surged by 39% to AED 123.1 million, while net profit jumped dramatically to AED 33.2 million, up from AED 4.1 million in the previous year. This is particularly notable given the prior-year quarter was affected by impairment charges in the snacking segment. Over the first nine months of the year, Agthia’s revenue increased by 9.6% to AED 3.9 billion, and its net profit almost tripled to AED 154.6 million.

Segment-by-Segment Analysis

Agthia reported remarkable growth across its business segments. The Water and Food category grew by an impressive 36.7%, bolstered by one-off food security sales reported in Q3. Excluding these sales, the UAE Water revenue increased by 8%, led primarily by a 12.9% rise in Home and Office Services, further supplemented by growth in Turkey and Kuwait. However, the segment experienced margin pressures due to elevated costs in PET, freight, and distribution.

In terms of Agri-Business, the segment posted a 10.5% revenue increase, driven primarily by an 18.3% spike in feed sales. However, EBITDA declined by 39.3% to AED 31.4 million due to rising input costs and distribution expenses.

The Snacking segment, on the other hand, continues to enhance profitability. With the gross margin increasing by 613 basis points, the segment achieved a positive EBITDA of AED 23.8 million, a significant turnaround from the previous year's loss that included prior impairment charges. Abu Auf, a noteworthy player within the segment, reported a revenue growth of 21.7% and expanded its store count.

CEO’s Insights on Future Prospects

Khalifa Sultan Al Suwaidi, Chairman of Agthia's Board, noted the strain on supply chains across the region and commended Agthia for its steadfast commitment to market resilience. Al Suwaidi expressed confidence in the management’s ability to transform the business, ensuring long-term value for stakeholders and communities alike.

Salmeen Alameri, Managing Director and CEO of Agthia Group, emphasized the measures taken over the past year to strengthen the company’s operational framework. He stated, “We are dedicated to protecting our business against intensified input and logistics pressures, while simultaneously fostering innovation and digital capabilities that will redefine our competitive landscape.”

Conclusion

As Agthia Group moves forward, its strategic focus and operational discipline set a strong foundation to navigate the uncertainties of the food and beverage market. The company remains committed to delivering robust growth and further optimizing its portfolio to best serve its stakeholders and consumers in the region. With sustained momentum and adaptability, Agthia's trajectory remains one to monitor in the upcoming fiscal periods.