Agthia affirms strategy to acquire, consolidate value accretive businesses

ABU DHABI / WAM

Agthia Group has emphasised on its strategy to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core.
This came as the group announced results for the fiscal year ending on December 31 in a statement recently.
According to the statement, the group’s gross profit increased 21% year-on-year to AED1.2 billion, with the 273bps decline in gross margin incorporating an additional AED270 million of commodity price inflation compared with the prior year. Its revenue footprint has expanded into 45 countries, with 51% of the revenue base now outside the UAE, compared with approximately 10% two years ago. The group’ net revenue increased 33% year-on-year to AED 4.07 billion (+97% on a 2-year basis), with 22% growth from volume and 11% from pricing.
The group’s net profit increased 14% year-on-year to AED247 million, with earnings per share +9% year-on-year (or +14% excluding the contribution and associated costs relating to Agthia Group’s acquisition of Abu Auf in Q4).
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said, “Agthia’s strong performance this past year, in a challenging external environment, clearly demonstrates management’s ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core.”