The company operates in four main categories, namely Water & Food, Agri-Business, Protein & Frozen, and Snacking.
In a press statement released in February, Agthia’s Water & Food business achieved a 7.4% revenue growth in the fiscal year ending December 31, 2024 (FY24), with the Al Ain brand maintaining its market-leading position.
The category’s performance was driven by strategic premiumisation and a strong focus on value-added innovations, resulting in a 137bps expansion in EBITDA margin for FY24.
“Looking at all four categories, it’s very difficult for me to pick one child because all of them have huge potential in the market for various reasons. For instance, the way water is positioned today — hydration is more than just quenching thirst.
“The UAE is a country where everyone consumes packaged water, be it a small bottle or a five-gallon bottle. And as the population continues to grow, the market opportunity is massive,” Ahmed Yahya, President – Water & Food of Agthia, told FoodNavigator-Asia.
While market fluctuations are normal, the company’s long-term goal is to double its revenue over the next five years.
“That’s where we work towards — how can we, through organic and inorganic growth, keep expanding Agthia as a business? We doubled our revenue from AED2.1bn in 2020 to AED4.9bn in 2024. Our target is similarly to double our growth in the coming five years.”
According to Yahya, 80 to 90% of Agthia’s revenue were derived from the UAE five years ago. Today, about half of it come from the UAE and half from other markets.
“We have gone big in Egypt and Lebanon, which is growing. We now have businesses across the GCC, including Saudi Arabia, Kuwait, and Oman. We are open to opportunities in new markets as well as existing markets because there’s still a lot to achieve [in these markets. Our mission is to spread the goodness of UAE’s better-for-you products.”
Yahya emphasised that the company’s strategy is built around a growth mindset, tapping into the “right opportunity for the right market”.
“The strategy is built around strong brands, taking the right talent to the right places, and bringing the right food to the right market. In a lot of these markets, we will require a partner. The partnerships can have multiple variations. It can be a co-man, a joint venture, a merger and acquisition (M&A), or a strategic partner.
“We are always looking for the right partner to expand because we believe that partners do bring a lot to the party. Rather than just trying to do everything alone, it’s better to combine forces.”
Leveraging a large portfolio
Additionally, Yahya also touched on the growth potential of other categories.
In particular, the Snacking segment achieved 14.7% revenue growth in FY24, led by Egypt-based healthy snacks brand and specialty food retailer Abu Auf, which delivered a 33.3% revenue growth in AED despite the impact of EGP devaluation.
Abu Auf’s performance is said to be bolstered by product innovation and the launch of 59 new stores last year.
“Gone are the days of two- or three-meal occasions. Now, it’s all about snacking. Even the doctors are recommending it to control diet and weight. A lot of times, snacking is a treat but where we play is better-for-you.
“We are not just giving you empty calories. We’re giving you a treat but without anything that makes you feel bad. When you eat our dates, confectionery or other Middle Eastern snacks that we have, it’s a guilt-free indulgence.”
As for the Protein & Frozen category, the growth opportunity lies in consumer lifestyles that are spurring demand for convenience and time-saving options.
“Frozen products, such as burgers and nuggets, cater to households where both parents are working or people who don’t want to go out for a meal. Why do you need to go outside when you can get the same restaurant-style taste at home?
“We have leverage because of our portfolio. Taking dates for example, we have natural, basic dates, and we have chocolate dates and nuts-filled dates etc. These offerings provide consumers with a choice. I think that’s where we connect well with the younger population, who are also very interested in our products today.”
