#Abu Dhabi #UAE #revenue growth #Food And Beverage #Agthia Group

Agthia Group Reports Revenue Growth in Q3 2026

In a recent announcement, Agthia Group PJSC (AGTHIA: UH), a leading player in the food and beverage industry in the UAE, revealed its financial results for the third quarter and the first nine months of 2026. While the operational landscape remains challenging, Agthia has successfully accelerated its growth trajectory through robust management practices and strategic initiatives.

Financial Performance Overview

In the third quarter of 2026, Agthia reported a remarkable year-on-year revenue increase of 14.4%, totaling 1.3 billion AED. This figure includes approximately 104.7 million AED from non-recurring sales tied to food security initiatives. The underlying revenue growth, excluding one-time sales, was a commendable 5.2%. This upswing in revenues has not only improved the company's profitability but has also highlighted their strong financial foundation, despite facing heightened operational pressures.

Total EBITDA surged to 123.1 million AED, marking a significant 39.0% increase compared to previous quarters, with net profit reaching 33.2 million AED, a stark contrast to the 4.1 million AED recorded in the same quarter last year, which was negatively impacted by asset impairment costs in the snacks segment.

Throughout the first nine months of the year, Agthia's revenues rose by 9.6%, reaching 3.9 billion AED, while EBITDA grew by 36.7% to 433.6 million AED. The company's net profit dramatically increased nearly threefold, amounting to 154.6 million AED.

Segment Performance

The Water and Food segment experienced impressive revenue growth of 36.7%, much of it stemming from the food safety sales during the third quarter. Core water sales in the UAE grew by 8.0%, excluding exceptional sales, fueled largely by a 12.9% rise in home and office delivery services, with contributions also noted from Turkey and Kuwait's international sales. However, rising costs for PET, transportation, and distribution have put pressure on the segment's margins.

Meanwhile, the Agribusiness sector reported a revenue boost of 10.5%, primarily driven by an 18.3% increase in feed sales. However, the segment's EBITDA declined by 39.3% to 31.4 million AED, reflecting the strain from escalating input costs, coupled with increased distribution expenses.

The snacks division continued to enhance profitability during its restructuring phase, improving gross margin by 613 basis points with positive developments across all business lines in the third quarter. Notably, Abu Auf achieved a 21.7% increase in revenues and opened 69 new stores in the year, seizing 1.0% market share in the ground coffee space. The segment's EBITDA hit 23.8 million AED, recovering from a loss reported the previous year linked to asset impairment charges.

Agthia also saw significant growth in the Proteins and Frozen Products segment, witnessing a 25.1% increase in revenues, buoyed by advancements in all business units, particularly Nabil, which grew by 25.3%. The expansion of Agthia's facilities in Saudi Arabia nearly quadrupled protein sales in that region.

Leadership Insights

Khalifa Sultan Al Suwaidi, Chairman of the Board of Agthia, emphasized the resilience of food supply chains amid the pressures experienced in recent months. He commended Agthia's commitment to serving its essential markets and acknowledged the progress achieved by management in the company's transformation efforts aimed at delivering long-term value for shareholders and the communities in which Agthia operates.

Salmeen Alameri, CEO of Agthia Group, stated that the transformation strategy is making headway. Over the past year, they have fortified their product range and operational discipline, which is starting to yield positive results. He acknowledged the company's proactive measures in mitigating the impact of rising input and logistical pressures. Furthermore, initiatives focusing on innovation, data, and digital technology are being prioritized as key competitive strategies to navigate the volatile business environment seamlessly.