The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
ABU DHABI / WAM
Agthia Group on Tuesday announced that the group’s net revenue reached AED3.07 billion for 2021, equivalent to 49% year-on-year growth compared to same period last year, following the consolidation and integration of key acquisitions into the business.
The Group’s net profit stood at AED216 million compared to AED34 million in the previous year, in which AED83 million of one-off costs were incurred as a result of a strategic review of the Company’s balance sheet.
The substantial improvement to net income was underpinned by the addition of Al Foah, Al Faysal Bakery, Nabil Foods, and Atyab alongside key cost optimisation initiatives and pricing that mitigated the impact of higher raw material costs and additional M&A related fees.
The Group’s total assets as of December 31, 2021, reached AED6.4 billion following the consolidation of new assets into the business, up from AED3.1 billion as recorded for the previous year. Total shareholders’ equity stood at AED2.8 billion for the period, increasing from AED1.9 billion in 2020.
In line with the semi-annual policy, Agthia’s Board of Directors has recommended an 8.25 percent cash dividend for the second half of 2021, equivalent to AED0.0825 per share and, once approved by shareholders, total dividends distributed for the year will amount to AED130.6 million, an increase from AED118.8 million in 2020. Commenting on the announcement, Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said, “Our results for 2021 are a testament to the soundness of our strategy and the quality of its execution.â€
The milestones achieved reflect our dedication to the ongoing transformation efforts across our primary verticals as we build a more efficient organisation that will enhance value creation and improve productivity.”
Alan Smith, CEO of Agthia Group, said, “In 2021, our primary focus was the consolidation of our CBD, which almost doubled versus the previous year, due to our targeted approach towards strategic acquisitions. Our M&A activity throughout 2021 showcases our ongoing commitment to evolving the business into growth accretive consumer goods categories with the acquisition and consolidation of four new entities across the protein and snacking segments, contributing a healthy AED1.07 billion to sales.”