Agthia plans acquisitions and mergers

Mubarak Al Mansouri, Head of the snacks and authorities relations division at Agthia Holding Group, stated: The group is planning acquisitions and mergers within the close to future.

Al Mansouri, in stories to Al Bayan, stated that the rise in income within the first quarter of 2024 was pushed by a 17.5% progress in quantity and a 5.1% improve in costs this got here after the success of the assorted departments.

Growth plans

Relating to the corporate’s plans for growth within the coming interval, he stated: We’ve a steadiness of 483 million dirhams in money on the steadiness sheet, which we are able to use to finance mergers and acquisitions, in addition to a excessive fee of curiosity 8.2 instances. , and we even have a group absolutely specialised in mergers and acquisitions who’re at all times on the lookout for progress alternatives throughout the sector, we often give attention to markets with massive inhabitants bases and consumption traits that’s continually rising.

He stated: The Agthia Group considers Saudi Arabia a vital market, because it represents nearly half of the inhabitants and gross home product within the Gulf Cooperation Council nations, and is it is a market we already serve by three of our divisions (meals, protein and water), and it makes industrial sense to develop the vary and improve capability.

He defined that when it comes to the newest developments relating to acquisitions and mergers, we’ve got elevated our share within the Abu Auf Group by 10%, bringing the Agthia Group’s complete share in Abu Auf to 70%. BMB”, which operates within the discipline of wholesome snacks, with the goal of increasing the snack meals sector. As well as, we lately merged the remaining minority shares in Egypt’s Atyab Firm for the manufacturing of hen and processed meat, and Agthia Group now absolutely owns Atyab Firm.

Relating to the affect of the present geopolitical tensions and transport costs on Agthia’s operations, he burdened that the present geopolitical state of affairs has not affected Agthia Group, and stated: We consider that the disturbances within the Purple Sea are momentary, as Agthia Group operates in a big space. variety of geographically numerous markets, and its portfolio is very diversified. This ensures our means to take care of any state of affairs. Nevertheless, as a precaution we’ve got elevated our inventory protection to make sure that all of our gadgets can be found, and presently have 6 months of inventory protection.

He stated: We’ve a protein enterprise unit in Jordan (Nabil) that focuses its enterprise 50% domestically, and 50% on exports all through the GCC nations, and its work will serve gross sales channels , meals companies and fast service eating places in Jordan and the GCC markets. We even have Al-Faisal Bakery and a water retail enterprise in Kuwait.

And naturally, we’ve got our enterprise within the water sector in Saudi Arabia, which turned worthwhile final 12 months. In consequence, revenues from the worldwide enterprise within the water and meals sector elevated 8.3% 12 months on 12 months, with distinctive efficiency. in Kuwait (+ 21.0%) and Sultanate of Oman (+ 14.2%) Relating to the protein sector in Jordan, we’ve got seen extra competitors and a few client pressures, which had a detrimental affect on our enterprise within the first quarter of 2024. With the launch of the protein facility in Jeddah, we count on this section to contribute positively to our income and profitability metrics.

He stated: Agthia Group leads the water sector within the United Arab Emirates with the biggest market share in comparison with its rivals. Consistent with new client traits, Agthia Group continued its formidable progress path by strengthening its presence within the sector’s predominant markets, and increasing into value-added sectors, with the group continues to give attention to constructing capabilities and supporting the values ​​of innovation. and sustainability, in addition to the group’s plans associated to mergers and acquisitions.

Relating to Agthia’s plan for digital transformation, Mubarak Al Mansouri stated: Our journey in direction of digital transformation within the Agthia Group is continuing at full velocity, and we’ve got 45 totally different initiatives presentation all through the group through the 12 months 2023, with a give attention to enhancing buyer expertise and industrial foundations, making the group “Agthia is a data-driven group linked to clients, all of whom guarantee secure and dependable digital and technological operations.

He stated: Within the first quarter, we launched a number of technological initiatives aimed toward enhancing the well being and security of our staff, and innovation performs an important function in reaching Agthia Group’s imaginative and prescient of is a number one group within the discipline of meals and drinks within the Center East and North Africa area and past by 2025. The Central Innovation Devoted group has a group, which coordinates innovation initiatives between items enterprise, R&D and exterior innovation. Within the first quarter of 2024, we achieved a income of AED 47.8 million from innovation alone.