Agthia Group reports 32% net profit growth in Q1 – Gulf Today

Agthia Group reports 32% net profit growth in Q1 – Gulf Today

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Agthia Group (Agthia), said that its net profit grew 32% year-on-year to Dhs127.6 million. The Group net profit margin expanded by 63bps to stand at 8.8%, notwithstanding FX headwinds and the introduction of income tax in the UAE.

This came as the Group announced today its results for the three-month period ending 31 March 2024.

In a statement, Agthia said the Group delivered strong performance during Q1 2024, on track to meet its full-year 2024 guidance. The Group’s profitable growth across the Snacking, Water & Food, and Agri-Business segments, combined with leveraging group-wide efficiencies, resulted in both Group EBITDA and Group net profit growing faster than revenue.

The Group net revenue increased 22.6% year-on-year to Dhs1.45 billion (5% growth from volume and 5.1% from pricing), with strong performance across all segments, despite challenging global macroeconomic conditions. The Group revenue, adjusted for the impact of currency devaluation in Egypt (Dhs -42.5 million), increased by 26.2% year-on-year. Q1 2024 revenue was positively impacted by Dhs 120 million in one-off commodity trading sales in the Agri-Business. Excluding this one-off, Group net revenue increased by 12.4% year-on-year.

Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, commented: “Agthia’s remarkable performance