Agthia Group Reports Strong Financial Position and Increased Dividend for H1 2026

Agthia Group Strengthens Financial Performance in H1 2026

Agthia Group PJSC (AGTHIA: UH), a leading agribusiness in the region, has recently announced its financial results for the first half and second quarter of 2026, highlighting significant progress in its long-term transformation strategy. This results in strengthened cash generation, a healthier balance sheet, and an impressive 14.4% increase in the interim dividend.

As a part of its transformation, Agthia has undertaken efforts to adapt its portfolio amid external challenges and rising cost pressures. In the first half of 2026, the group's revenue saw a year-on-year increase of 7.4%, totaling 2.6 billion AED. This growth is attributed to the successful execution of the UAE's food security program that facilitated sales spikes. The EBITDA surged by 35.8%, reaching 310.5 million AED, with the EBITDA margin widening by 250 basis points to 11.9%. Moreover, net profit reached 121.4 million AED, showcasing a remarkable 147.4% growth compared to the previous year.

The second quarter alone reflected an even more robust performance, with revenue climbing by 11.9% to 1.3 billion AED. EBITDA in this quarter experienced a remarkable increase of 172.5%, totaling 117.2 million AED, and the EBITDA margin likewise expanded significantly by 542 basis points to achieve a rate of 9.2%. The group reported a net income of 24.5 million AED for the quarter.

A standout feature of this financial period is Agthia's return to positive free cash flow, amounting to 521.4 million AED, which contrasts sharply with a negative cash flow reported a year earlier. The net debt to EBITDA ratio improved to 1.8 from 2.9 in December 2025, illustrating the prudent fiscal management by the company. By June 30, 2026, Agthia reported total cash holdings of 869.6 million AED.

The overall asset base for the group continued to grow, reaching an all-time high of 6.5 billion AED by the end of the first half of 2026. The strong growth profile was driven by impressive performance across the key segments. Notably, the water and food segment led the way, driven by Al Ain, Agthia’s flagship brand which surpassed 1 billion AED in revenue and fortified its leadership position in the bottled water market, gaining 2.0 percentage points of market share year-on-year.

The protein and frozen products sector also recorded a robust growth of 22.0% in Q2,2959317266 bolstered by notable performance from brands like Nabil (+32.5%). Contributions from Atyab also improved, with a year-on-year increase of 8.1%, enhanced by the startup of the group’s protein facility in Saudi Arabia. The agribusiness sector grew by 11.0%, supported by strong demand for animal feed, with Agrivita sales jumping by 23.3%.

During this quarter, the 'Convenience Food' division maintained its focus on transforming the operations of Al Foah and BMB, laying the groundwork for long-term value creation, while Abu Auf sustained a healthy growth trajectory, tracking a 23.7% increase in revenue for Q2 2026.

In acknowledgment of its strong performance, Agthia's board has recommended the issuance of an interim cash dividend of 11.792 fils per share for the six months ending June 30, 2026, representing a 14.4% increase from the previous year. This marks a second consecutive period of dividend growth, following a previously recommended increase of 10.0% for the second half of 2025.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, stated, "The increase in the interim dividend for the second consecutive period underscores the robust management of the Agthia group and the board's confidence in its long-term value. Even amid challenging circumstances, the group has generated the cash flows necessary to reward its shareholders and fund its growth."

Meanwhile, Salmeen Alameri, Managing Director and CEO of Agthia Group, remarked, "The transformation efforts initiated a year ago are yielding significant results, with increased revenues, improved margins, and enhanced cash generation bolstering our balance sheet. We have ensured uninterrupted supply chains, supported our customers, and further advanced the UAE Food Security Program at a critical juncture. We have also expedited our sustainability initiatives, achieving a 26.7% reduction in emissions relative to the previous year."

Agthia’s CFO, Jeroen Nijs, added, "The financial standing of Agthia has markedly improved during H1 2026. In addition to the revenue uptick, we have also generated positive free cash flow of 521 million AED, while improving our net debt-to-EBITDA ratio from 2.9 to 1.8. With 870 million AED in cash and cash equivalents, Agthia is well-positioned to navigate current regional disruptions and continue implementing its strategic transformation programs while improving returns for shareholders."