The Abu Dhabi-listed food and beverage group reported a 9.6 per cent rise in revenue to Dh3.9 billion despite higher input, freight and distribution costs.
Agthia Group’s net profit surged 190.9 per cent year-on-year to Dh154.6 million in the first nine months of 2026, supported by improved operating performance and progress in its business transformation, even as rising input and logistics costs continued to weigh on underlying profitability.
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The Abu Dhabi-listed food and beverage company reported a 9.6 per cent increase in revenue to Dh3.9 billion during the January-to-September period, while earnings before interest, taxes, depreciation and amortization climbed 36.7 per cent to Dh433.6 million.
In the third quarter of 2026, Agthia’s revenue rose 14.4 per cent year-on-year to Dh1.3 billion, including Dh104.7 million in one-off sales.
Excluding these sales, underlying revenue growth stood at 5.2 per cent.
Quarterly Ebitda increased 39 per cent to Dh123.1 million, while net profit reached Dh33.2 million, compared with Dh4.1 million in the same period last year, when earnings were affected by impairment charges in the snacking business.
The group also reported stronger cash generation, with free cash flow reaching Dh212.1 million during the first nine months, reversing an outflow recorded in the corresponding period of 2025.
Net debt-to-Ebitda improved to 2.4 times from 2.9 times at the end of December 2025, while cash and bank balances stood at Dh536.2 million as of September 30.
Agthia’s Water & Food segment recorded revenue growth of 36.7 per cent in the third quarter, supported partly by one-off food security sales.
Excluding these transactions, the UAE water business grew 8 per cent, driven by a 12.9 per cent increase in Home and Office Services revenue.
International operations in Turkey and Kuwait also contributed to growth.
However, higher polyethylene terephthalate ,freight and distribution costs weighed on the segment’s margins.
The Agri-Business division reported a 10.5 per cent increase in revenue, supported by an 18.3 per cent rise in feed sales.
Despite the revenue growth, segment EBITDA declined 39.3 per cent to Dh31.4 million as input and distribution costs increased.
Khalifa Sultan Al Suwaidi, Chairman of Agthia’s Board, said recent disruptions had placed significant pressure on regional supply chains, highlighting the importance of resilient food companies.
Salmeen Alameri, Managing Director and CEO of Agthia Group, said the company’s transformation was beginning to be reflected in its financial results.
He said Agthia was taking action to protect its operations as input and logistics pressures intensified, while investing in innovation, data and digital capabilities.
Chief Financial Officer Jeroen Nijs said improvements in cash flow, working capital and leverage had strengthened the group’s financial flexibility.
However, he cautioned that elevated input, freight and distribution costs were expected to continue affecting the business in the near term.
Agthia also reported an 18.1 per cent year-on-year increase in e-commerce sales during the third quarter, with online channels accounting for 7.6 per cent of underlying revenue.
Source: Khaleej Times