Agthia Group PJSC, one of the region’s leading food and beverage companies, held its 17th Annual General Meeting (AGM) virtually on Thursday, April 7, 2022. At the AGM, the shareholders approved the Board of Directors’ proposal for a cash dividend of 8.25%, equivalent to 8.25fils per share, in line with the Group’s semi-annual dividend policy. Total dividends distributed for the year amounted to AED 130.6 million, a 9.9% increase relative to the AED 118.8 million distributed in 2020.
The shareholders also approved the appointment of Ms. Sharmila Jennifer Murat as a board member, replacing Mr. Saifuddin Rupawala who resigned from the board to focus entirely on running LuLu. Other resolutions submitted and approved by shareholders include approval of the board of directors’ report, directors’ remuneration, auditors’ report, and financial statements for 2021. The directors and auditors were also discharged from any liability for the year 2021, while Deloitte were appointed as the auditors for the financial year 2022.
Agthia recently reported a Group net revenue of AED 3.07 billion – a 49% growth y-o-y, boosted by the inclusion and financial consolidation of Al Foah, Al Faysal Bakery, Nabil Foods and Atyab. The Protein segment contributed 21%, Snacking segment 18%, Water / Beverage and other Food items segment 31% and Agri segment 30% to 2021 Group revenues.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “2021 was a transformational year for Agthia, in which we announced our growth strategy targeted to achieve the goal of becoming a regional leader in F&B by 2025. Despite ongoing market volatility and challenging economic headwinds, we continued our disciplined and methodical execution which has led to our commercial growth, geographical expansion, and an increase in our human capital. We have built a strong, progressive, and sustainable business that is opening up new markets and providing high-quality products to more people.”
Alan Smith, Chief Executive Officer of Agthia Group, said: “Agthia’s prudent acquisition strategy throughout 2021 was vital to creating value for both shareholders and stakeholders across the Group, by unlocking additional revenue streams and profits. We expect next year, having established the four verticals of our operating model, to each contribute 25% to the business, and achieve our target of 75% of income being generated by consumer-based products. 2022 will be the year we fully reap the benefits of acquisitions made in line with our 2025 strategy. We have laid meaningful foundations in transitioning the company towards a more consumer product-based business, which we expect to deliver a significant impact on our performance over the next 12-month period. Success will be driven by the value we all add as we continue to implement the strategy and continue to build Agthia’s position as a leading food and beverage company.”
In terms of financial performance:
- The Consumer Business Division observed robust growth and contributed towards 70% of total group revenues, a 15% increase in contribution compared to 2020.
- The Protein & Frozen and Snacking segments contributed AED 656 million and AED 540 million respectively to the top-line, driven by the addition of the four new businesses to Agthia’s growing portfolio.
- Water and Beverage, and Other Food items, recorded revenues of AED 941 million. The bottled water segment in the UAE – which includes Al Ain Water, Al Bayan, Voss, and Alpin – continued to demonstrate resilience and preserved market leadership for the year, standing respectively at 26% for volume and 23% in value shares.
- Agri-business division revenues of AED 931 million in 2021 were flat versus 2020, which included a one-time World Food Program order in Q1 2020. On profitability, global inflation in grain prices and freight costs continued to put pressure on margins which are being addressed through operational efficiencies and pricing adjustments.
The Group’s total assets as of 31st December 2021 reached AED 6.4 billion following the consolidation of new assets into the business, up from AED 3.1 billion as recorded for the previous year. Total shareholders’ equity stood at AED 2.8 billion for the period, increasing from AED 1.9 billion in 2020.
The Group’s financial statements and the Corporate Governance Report for the year 2021 can be accessed through the ADX website: www.adx.ae and the company’s website: www.agthia.com.
