Abu Dhabi-based food and beverage company Agthia Group reported a sharp rise in first-half profit as stronger cash generation, improved margins and lower debt strengthened its financial position, enabling the company to raise its interim dividend for a second consecutive period.
The group said net profit for the six months ended June 30 reached Dh121.4 million, up 147.4 per cent year-on-year, while revenue increased 7.4 per cent to Dh2.6 billion. EBITDA rose 35.8 per cent to Dh310.5 million, with the EBITDA margin expanding by 250 basis points to 11.9 per cent.
Second-quarter performance was also stronger, with revenue rising 11.9 per cent to Dh1.3 billion. EBITDA climbed 172.5 per cent to Dh117.2 million, while net profit reached Dh24.5 million.
Agthia’s balance sheet improved significantly during the period. Free cash flow swung to a positive Dh521.4 million from an outflow a year earlier, while net debt-to-EBITDA fell to 1.8 times from 2.9 times at the end of 2025. The company ended June with Dh869.6 million in cash.
Reflecting the stronger financial position, the board recommended an interim cash dividend of 11.792 fils per share, up 14.4 per cent from a year earlier.
“Raising the interim dividend for a second consecutive period speaks to the discipline with which Agthia is being run and to the Board’s belief in its long-term value,” said Khalifa Sultan Al Suwaidi, chairman of Agthia. “Even in a demanding environment, the Group is generating the cash to reward shareholders and fund its own growth.”
The company said growth was driven by several core business segments. Water and Food revenue rose 38.9 per cent in the second quarter, supported by continued gains for the Al Ain bottled water brand. Protein and Frozen revenue increased 22 per cent, while Agri-Business revenue grew 11 per cent on stronger feed demand. Abu Auf, the group’s snacking brand, posted revenue growth of 23.7 per cent during the quarter.
Managing director and chief executive Salmeen Alameri said the company’s transformation programme was beginning to deliver results.
“The transformation we set in motion a year ago is delivering tangible results, with stronger earnings, expanding margins, and improved cash generation strengthening our balance sheet,” he said. “We maintained uninterrupted supply, supported our customers, and advanced the UAE’s food security agenda when it mattered most.”
Chief financial officer Jeroen Nijs said the company’s deleveraging and stronger liquidity position would help it navigate regional market challenges while continuing its strategic initiatives.
“With Dh 870 million of cash and cash equivalents, Agthia is well positioned to navigate the current regional disruption, execute our strategic transformation programs and enhance shareholder returns,” he said.
Source: Khaleej Times