Agthia Group Reports 9M 2024 Results: Solid Revenue and Profit Growth Across All Segments
Agthia Group PJSC (“Agthia” or “the Group”), one of the region’s leading food and beverage companies, today announced its financial results for the first nine months of 2024, marking a period of solid growth across all its business segments. Agthia’s robust performance positions the Group to meet its full-year guidance, with Group EBITDA and Group net profit outpacing revenue growth as a result of operational efficiencies and disciplined cost management.
9M 2024 Financial highlights
Group net revenue increased 10.3% year-on-year to AED 3.6 billion with 8.5% of the growth driven by volume and 1.8% from pricing. This performance was bolstered by strategic portfolio shifts toward higher-growth segments and significant innovations, which accounted for 57% of the Group’s total growth. Group revenue, adjusted for the negative impact of currency devaluation in Egypt (AED 264.5 million), increased by 18.4% year-on-year. Despite the FX impact, Agthia’s Egyptian businesses combined delivered 10.6% year-on-year revenue growth in AED terms during the reporting period.
EBITDA growth outpaced revenue, up 15.5% year-on-year to AED 537.4 million, reflecting strong profitability growth across all segments, driven by a focus on profit protection in Egypt and group-wide efficiency initiatives. As a result, the Group’s EBITDA margin expanded by 68bps year-on-year, reaching 14.9%. Adjusting for the negative impact of the EGP devaluation, which amounted to AED 56.8 million, EBITDA growth would have been even more substantial at 27.8% year-on-year, with EBITDA margin expanding by 112bps to 15.3%.
Group net profit surged by 24.0% year-on-year to AED 254.9 million during the first nine months of 2024, demonstrating the Group’s resilience in navigating a challenging macroeconomic environment. The net profit margin expanded by 78bps to reach 7.1%, despite facing significant FX headwinds, namely from currency devaluation in Egypt, and the introduction of income tax in the UAE.
Strong balance sheet: Agthia’s balance sheet remains robust with cash and equivalents of AED 0.6 billion and total liquidity of AED 2.0 billion. The Group’s net debt to EBITDA ratio stands at 1.4x, with net debt totaling AED 1.1 billion.
Full-year guidance maintained: Building on the strong momentum across Agthia’s business and despite persistent currency headwinds impacting the Group’s Egyptian operations, Agthia anticipates full-year 2024 revenue growth between 10% and 12%, with a 40-60bps increase in EBITDA margin and a 30-50bps increase in Group net profit margin.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented: “Agthia’s strong year-to-date performance reflects the strength of our diversified portfolio and strategic growth initiatives, even amidst global challenges such as currency fluctuations and inflationary pressures. Our ability to balance innovation, operational efficiency, and sustainability positions us well to navigate macroeconomic headwinds while continuing to deliver long-term value for our stakeholders. These results highlight our resilience and strategic focus on driving sustainable value across our diverse portfolio. As we look ahead, our focus remains on accelerating growth across the region and fortifying our leadership in key markets.”
Alan Smith, Group Chief Executive Officer of Agthia Group, commented: “We are making significant strides in protecting our core business, benefiting from value-accretive M&A, and investing in innovation and capabilities. Our results for the first nine months of 2024 demonstrate Agthia’s operational resilience and relentless focus on executing our strategy. We’ve delivered solid revenue growth and expanded profitability across all segments, with 57% of our growth driven by innovation. Despite external challenges, particularly in Egypt, we’ve maintained robust margin improvement through efficiency gains and prudent cost management. Our teams have exhibited remarkable focus and agility, fueling sustainable growth through strategic investments in our brands and people, capturing synergies, and enhancing operational efficiency. I am especially proud of our advancements in our ESG agenda, which are underpinned by strong governance and a unified culture around sustainability.”
