The CEO said major acquisitions expanded Agthia’s profits
RIYADH: Agthia Group PJSC, one of the leading food and beverage companies in the region, achieved a 58 percent increase in net revenue by more than one billion dirhams ($272 million) in the first quarter of 2022, after the success of its strategy to enter into new project. Markets and acquisitions of new food companies.
The company’s quarterly results reflect the change in its business position last year when it acquired five companies, including Al Foah, Al Faisal Bakeries and Sweets, Nabil Foods, Atyab and BMB Group.
During 2021, we set our strategy to diversify our business. We have diversified our revenues by moving into higher margin consumer goods categories and relying less on the commodity portfolio. And to do that, we need to grow,” CEO Alan Smith told Arab News.
We are keen to explore opportunities in the Saudi market.
Alan Smith, CEO
Not surprisingly, the company’s international business in the first quarter of 2022 amounted to 51 percent of its revenue. Revenues increased during the same period by 58% compared to the first quarter of 2021.
“This revenue growth was driven by our revenue diversification and newly acquired business consolidation, combined with industry-leading cost optimization initiatives and an unparalleled ability to boost productivity.” Smith said.
He added, “In the first quarter of 2022, our focus primarily focused on the seamless integration of the entities acquired in 2021.”
The Group’s net profit attributable to shareholders was AED 82 million for the first quarter, an increase of 64% compared to the first quarter of 2021.
Laying eyes on new markets
After diversifying and acquiring major food and water companies, the company has now set its sights on new markets in the Middle East.
What we are focusing on now is to continue to look at the potential that the MENAP market holds. “We are looking for business opportunities that fit within our overall strategy,” Smith said.
The company has made significant investments in Egypt, Jordan and the United Arab Emirates. Additionally, it intends to increase its presence in Saudi Arabia.
He noted, “The Kingdom of Saudi Arabia is a large consumer market, and increasing our footprint here is part of our five-year strategy, and we are keen to explore opportunities in the Saudi market.”
He added: “The ambitious Vision 2030 is exciting for everyone. There was a big shift in the second half of last year, with more people coming out. And I think this is a trend that will continue to grow.”
According to the group CEO, the company has done well in the Kingdom in terms of protein (Nabil) and snacks (BMB) and is still keen to do more business. There is scope to improve the water class through restructuring to ensure better performance.
“We see plenty of room for further growth as Agthia continues to pursue full integration as a top priority in 2022,” Smith said.
What’s Next? The company has not stopped window shopping for new companies. His team is constantly looking for new opportunities to suit the group’s appetite.
“We spend a lot of time measuring the performance of those organizations, whether it’s people or capacity. We also spend a lot of time identifying potential synergies,” Smith concluded.