UAE food group Agthia is reaping the rewards of recent acquisitions, posting a strong 17% revenue increase for the first-quarter compared to the same period in 2020.
The Abu Dhabi-based group added UAE date company Al Foah and Kuwait’s Al Faysal Bakery and Sweets to its first-quarter, posting its strongest year-on-year revenue growth in recent years.
This year’s first-quarter growth of 17% to 665.5 million dirhams ($181.2 million) is stronger than the company’s Q1 2020 growth of 12%, 2019’s rise of 3.4%, and 2018’s 3.7%.
CEO Alan Smith described the additions of Al Foah and Al Faysal in a statement on Tuesday (April 4) as “positive contributions for the rest of the year”.
The company’s consumer business posted 430.5 million dirhams in revenues. Al Faysal contributed to the 23.5% increase in revenue for the group’s food segment and Al Foah added 137 million dirhams to the top-line from January through March.
Agthia’s water and beverage business earned the group 192 million dirhams in revenue, with the five-gallon home and office distribution business growing the top-line by 4% year-on-year, said the company.
In agri-business, revenues reached 235 million dirhams, lower than the 273 million dirhams it earned in Q1 2020. Agthia said last year’s first-quarter revenue in this segment was driven by a one-time order from the World Food Program.
Agthia’s annual revenues grew from 2018 to 2020 but its profits did not follow in the same upward direction. The group initiated big changes in 2020, including naming Alan Smith as its new CEO in July and acquiring regional companies in an attempt to buy growth.
Announcing the company's first-quarter earnings, chairperson Khalifa Sultan Al Suwaidi referenced the group’s 2025 strategic plan, released last month, that focuses on expansion and growth into value-add categories through mergers and acquisitions.
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