Agthia Reports Impressive Financial Growth: H1 2026 Insights and Interim Dividend Raise

Agthia Group Reports Strong Financial Results for H1 2026

Agthia Group PJSC, one of the leading food and beverage companies in the Middle East, has announced an impressive set of financial results for the first half of 2026. The company's results reflect a successful multi-year transformation strategy aimed at enhancing its operational efficiency and market position.

Superior Financial Performance

In the first half of 2026, Agthia reported a revenue increase of 7.4% year-on-year, totaling AED 2.6 billion. This growth was significantly supported by strategic one-off sales tied to the UAE's food security program. Notably, the group's EBITDA surged by 35.8%, reaching AED 310.5 million, and improved its EBITDA margin by 250 basis points to 11.9%. The net profit saw a striking increase of 147.4%, amounting to AED 121.4 million.

The second quarter of 2026 further demonstrated the group's solid performance, with revenue climbing by 11.9%, and EBITDA exploding by 172.5% to AED 117.2 million. The net profit for this quarter reached AED 24.5 million, contributing to the company's remarkable financial resilience amidst external challenges.

Robust Cash Flow and Decreased Debt

Agthia's financial health is further reflected in its positive free cash flow of AED 521.4 million, a turnaround from a cash outflow a year earlier. The company has successfully reduced its net debt-to-EBITDA ratio from 2.9x in December 2025 to 1.8x, showcasing effective debt management amid operational challenges. As of June 30, 2026, Agthia holds AED 869.6 million in cash, further strengthening its balance sheet and overall financial position.

Segmented Business Performance

The transformation initiatives undertaken by Agthia have shown promising results across its core business segments. The company's water and food divisions led the revenue growth in the second quarter, with a stellar 38.9% increase. Al Ain, Agthia’s flagship bottled water brand, maintained its top position in the market, increasing its value share by 2 percentage points year-on-year.

The protein and frozen food segments also performed admirably, growing by 22.0%, with Nabil brand leading the charge with a 32.5% increase. The agricultural business segment grew by 11.0%, propelled by high demand for feeds, while the snacking division focused on transforming various brands for long-term gains, evidenced by Abu Auf's revenue rise of 23.7% over the previous year.

Increased Shareholder Returns

As a testament to its robust performance, Agthia’s Board of Directors has recommended an interim cash dividend of 11.792 fils per share, marking a 14.4% year-on-year increase. This recommendation signifies the group's commitment to rewarding its shareholders and reflects the financial discipline steering Agthia's growth.

Khalifa Sultan Al Suwaidi, Chairman of the Board, remarked on the importance of the dividend increase, stating it demonstrates the board's confidence in the company's long-term value amidst a challenging market environment. The managing director, Salmeen Alameri, highlighted that the ongoing transformation is yielding tangible outcomes, characterized by improved earnings and cash generation.

Moreover, Agthia has progressed in its sustainability efforts, achieving a significant 26.7% reduction in emissions year-on-year, thus aligning its operational practices with contemporary environmental standards.

Conclusion

Agthia Group’s strong financial results for H1 2026 underline its effective transformation strategies, resilience in overcoming challenges, and dedication to shareholder value. With an emphasis on strategic growth and sustainability, Agthia positions itself confidently for continued success in the competitive food and beverage sector.