Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.comAGTHIA GROUP PJSC | Third Quarter 2022 Results
Strong double-digit profit growth in a peak cost environment
▪ Q3 Group revenue +20% YoY with strong growth across key Protein and Snacking segments
▪ Q3 Group gross profit +14.6% YoY with gross margin broadly in line with H1’22
▪ Q3 Group EBITDA +23% YoY reflecting strong cost discipline and productivity gains
▪ Q3 Group net profit1 +14% YoY, notwithstanding a higher interest rate environment versus the comparable period
▪ Q3 Group free cash flow +12% YoY; H1’22 dividend per share of 8.25fils approved in the quarter
Agthia Group PJSC (AGTHIA:UH) today announces its third quarter results for the three months ending 30 September
2022.
Financial highlights
Q3 revenue growth reflected robust pricing (price and volume growth of 12% and 8% respectively) and was
underpinned by strong demand in Protein and Snacking and market leadership in UAE bottled water. Year-to-date
revenue growth was +39.5% YoY, with 13% from pricing and 27% from volume.
Revenues (AED MN) FY 2021 % YoY Q3 2022 % YoY 9M 2022 %YoY
Protein & Frozen 655.5 433.2% 308.1 38.6% 878.5 135.7%
Snacking 540.1 3579.0% 182.5 68.7% 599.3 79.4%
Water & Food 940.6 -4.8% 237.7 0.7% 712.5 -0.3%
Total Consumer Business 2,136.3 89.7% 728.3 28.6% 2,190.4 54.1%
Agri-Business 931.3 -0.4% 225.2 -1.5% 758.8 9.6%
Total Group 3,067.6 48.8% 953.5 19.9% 2,949.2 39.5%
▪ Consumer business (CBD) revenue contribution increased year-on-year from 71% to 76% of group total, in line
with our strategy to diversify into high growth consumer goods categories.
- Protein & Frozen: Q3 revenue growth (+39%) reflected good portfolio and channel management, with 11%
from pricing and an additional month contribution from Atyab compared to the prior year. On a constant
currency basis, adjusting for the recent devaluation in the Egyptian pound, Q3 sales growth was 56% YoY with
volume growth of 28%.
- Snacking: Revenue growth of 69% YoY was underpinned by high-teens volume growth in our dates business
as well as expansion of the retail footprint. BMB, consolidated from the start of 2022, generated revenue of
AED 55.3m.
- Water & Food: Flat revenue growth YoY reflected lower aggregate demand across the UAE as post-pandemic
outbound travel accelerated over the summer months, and a more subdued performance in our Community
Support Division (CSD) channel. A planned focus on innovation and premiumization helped underpin our
market leading position2 in UAE bottled water across retail, with good growth in both Food Service and our 5-
gallon home delivery subscription base. High single digit growth in international markets was encouraging,
with the benefits of our recent restructuring in KSA expected to materialize in 2023.
1 Group net profit attributable to shareholder (excluding minorities)
2 27.9% value share across the retail channel in the UAE based on AC Nielsen retail audit for bottled water excluding mineral water – MAT August
2022 submission
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com▪ Revenue from our Agribusiness was marginally down in Q3 YoY reflecting lower demand during the summer
months, albeit up 9.6% YoY on a year-to-date basis. Proactive management of mix in the quarter supported
stronger profitability YoY, offsetting significant inflationary pressures across key commodities, with gross profit
growth year-to-date more than twice that of revenue.
Q3 Group gross profit increased 14.6% YoY to AED 268.1m. Gross margin of 28.1% was broadly in line with H1’22,
despite peak raw material pricing in the quarter, testament to group-wide initiatives on product and channel mix,
sourcing, and production. On a year-to-date basis, growth in gross profit kept pace with revenue growth, up 35.1% YoY
to AED 843.3m, with margin -93bps despite the challenging cost environment.
Gross Profit (AED MN) FY 2021 % YoY Q3 2022 % YoY 9M 2022 % YoY
Protein & Frozen 177.5 650.2% 77.6 25.8% 226.3 127.0%
Snacking 178.7 nm 57.6 68.0% 184.3 87.5%
Water & Food 376.1 -5.4% 88.3 -6.4% 266.4 -8.0%
Total Consumer Business 732.4 74.3% 223.4 17.5% 677.0 38.8%
Agri-Business 234.6 1.5% 47.2 2.8% 174.1 20.9%
Central costs (10.3) -3.4% (2.5) 15.3% (7.8) 1.2%
Total Group 956.7 49.3% 268.1 14.6% 843.3 35.1%
- Protein & Frozen: 26% growth in absolute gross profit to AED 78m driven by volume growth and pricing,
while margin contracted 257bps as we balanced higher input costs versus market share.
- Snacking: 68% growth in absolute gross profit to AED 58m with margin maintained in line with the prior year.
- Water & Food: Gross margin decline of 280bps driven by YoY softness in Q3 volumes due to the holiday
season, and peak input costs on PET and fuel.
- Agribusiness: Gross margin improvement of 88bps YoY driven primarily by an improved mix.
▪ Group EBITDA up 23% YoY to AED 127.5m, with EBITDA margin +37bps to 13.4% reflecting productivity gains and
good cost control (SG&A expense as a proportion of revenue -205bps YoY).
▪ Group net profit3 of AED 40.5m, up 14% YoY, despite an increase in interest and amortization charges and higher
minority interest versus the prior comparable period. Net profit outturn included management’s review of income
tax provisions relating to our Egyptian operations.
▪ Strong profitability and proactive management of working capital (8 days improvement in cash conversion cycle)
underpinned good profit to cash conversion with Group free cash flow of AED 199m, up 12% YoY.
▪ Strong balance sheet with Cash & Equivalents of AED 1.2bn and liquidity of AED 1.9bn; Net debt to EBITDA of 1.3x.
Strategic highlights
We made good progress through the quarter in expanding our capabilities and driving efficiencies.
3 Group net profit attributable to shareholder (excluding minorities)
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.comExpanding capabilities
▪ Our acquisition of a majority stake in healthy snacks and coffee company, Auf Group, remains on track and will
enhance our footprint in the attractive Egyptian snacking market and broaden our branded consumer product
portfolio. Ahead of final regulatory approvals, during the quarter we undertook a detailed assessment of the short
and medium-term growth, operational and cost synergies across all Agthia Business Units.
▪ Finalized our 5-year digital roadmap. Devised in conjunction with Bain & Company, this roadmap is intended to
transform Agthia from a product-led to data-led consumer centric organization through 1) creating a digital
ecosystem to deliver breakthrough customer experiences and insights across all channels, thereby driving brand
equity 2) leveraging data as a strategic asset to increase digital revenue streams, new channels to market and
grow customer lifetime value and 3) implementing digital tools to optimize operational and process synergies
across the Group.
▪ Progressed our sustainability-focused partnership with RECAPP, with 356 tons of recyclables collected so far this
year, and a five-fold increase in PLA volumes compared to the prior year. Our 5-year sustainability plan will be
finalized in the coming weeks.
Driving efficiencies
▪ Accelerated the growth trajectory of our Al Foah dates business through our international sourcing and contract
farming program, which enables us to improve date variety and extend sourcing beyond the UAE.
▪ Agreed a strategic long-term lease covering the assets and operations of our Frozen Bakery business with the
Middle East operations of La Lorraine, a Belgian-based Bakery Group with over 80 years of milling and bakery
experience.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented:
“Agthia’s strong performance this quarter demonstrates both its resilience and continued progress in integrating
acquired companies, leveraging synergies, and maintaining a profitable core. In conjunction with its clear strategic
priorities, proven execution, and strong Executive Team, I am confident that Agthia will continue to deliver value for
all stakeholders in both the near and longer-term as it transforms into a leading Food & Beverage company in the
MENAP region and beyond”.
Alan Smith, Group Chief Executive Officer, commented:
“Despite a period characterized by significant and evolving external challenges, our strong performance during Q3 is
testament to the tireless efforts and agility of all our colleagues across the Group. Our strategy to acquire, integrate
and grow attractive businesses in value-add categories continues to bear fruit. We will continue to make the right
investments to deliver quality and profitable growth, supported by the financial resources that our robust balance
sheet and strong liquidity provide, and I remain excited by the growth opportunity ahead as we continue our journey
to becoming a leading regional Food and Beverage company”.
-End of announcement –
Khalifa Sultan Al Suwaidi
Chairman
08 November 2022
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.comConference Call details
The Consolidated Interim Financial Statements for the Nine Months ended 30th September 2022 will be available
through the following link on Agthia Website: https://www.agthia.com/investors/quarterly-results/.
A conference call for analysts and investors will be held at 5:00pm UAE time on November 9th 2022. The presentation
accompanying the call will be available on Agthia Group’s website under the Investors section:
https://www.agthia.com/investors/results-call-materials/
Investor Relations Enquiries
Agthia Group PJSC:
Roger Tejwani, Director of Investor Relations
+971 56 400 4596
Sahar Srour, Senior Investor Relations Manager
+971 56 680 4872
Agthia Group PJSC and its management may make certain statements that constitute “forward-looking statements” with respect to the financial
condition, results of operations and business of the Group. These statements can be identified by the fact that they do not relate strictly to historical or
current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,”
“goals,” “believes,” “continues” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and
“could.” Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Agthia Group PJSC to be materially different from any future results, performance or achievements expressed or
implied by these forward-looking statements. Examples of such statements include, but are not limited to, comments with respect to: 1. outlook for the
markets for products; 2. expectations regarding future product pricing; 3. outlook for operations; 4. expectations regarding production capacity and
volumes; 5. objectives; 6. strategies to achieve those objectives; 7. expected financial results; 8. sensitivity to changes in product prices; 9. sensitivity to
key input prices; 10. sensitivity to changes in foreign exchange rates; 11. expectations regarding income tax rates; 12. expectations regarding
compliance with environmental regulations; 13. expectations regarding contingent liabilities and guarantees; 14. expectations regarding the amount,
timing and benefits of capital investments. Although Agthia Group PJSC believes it has a reasonable basis for making these forward-looking statements,
readers are cautioned not to place undue reliance on such forward-looking information. By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts and other
forward-looking statements will not occur. These factors include, but are not limited to: 1. assumptions in connection with the economic and financial
conditions in the UAE, Middle East, and globally; 2. effects of competition and product pricing pressures; 3. effects of variations in the price and
availability of manufacturing inputs; 4. various events which could disrupt operations, including natural events and ongoing relations with employees;
5. impact of changes to or non-compliance with environmental regulations; 6. impact of any product liability claims in excess of insurance coverage; 7.
impact of future outcome of certain tax exposures; 8. effects of currency exposures and exchange rate fluctuations. The above list of important factors
affecting forward-looking information is not exhaustive. Additional factors are noted elsewhere and reference should be made to the other risks
discussed in filings with UAE securities regulatory authorities. Except as required by applicable law, Agthia Group PJSC does not undertake to update
any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company, whether as a result of
new information, future events or otherwise, or to publicly update or revise the above list of factors affecting this information.
Agthia Group PJSC
P.O.Box 37725, 17th Floor, Al Reem Island, Abu Dhabi, UAE. • T +971 2 5960600. •. F +971 2 6726070 • www.agthia.com

Sentiment: positive