It will inaugurate its new factory in Saudi Arabia next year
Agthia reveals acquisitions of 2.3 billion dirhams
Agthia will invest about 90 million dirhams in its expansion plans in the Saudi market.
Photography: Ashok Verma
Alan Smith: "We have sufficient capacity to initiate acquisitions, and we have low levels of indebtedness."
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Agthia Group revealed that the total value of the acquisitions executed by the group exceeded 2.3 billion dirhams last year, while work is currently underway on a new acquisition deal in Egypt, in addition to expansion in Saudi Arabia in line with the goal of leading the regional market for the food and beverage sector by 2025.
Group CEO Alan Smith said that Agthia has a great opportunity to enhance its growth geographically, especially in Saudi Arabia and other markets such as Pakistan and Egypt, as it is moving forward towards acquiring 60% of the Egyptian Abu Auf Group, noting that this deal will consolidate the group's presence in Egyptian market.
Smith added that Agthia will invest about 90 million dirhams as part of its expansion plans in Saudi Arabia, to build a new industrial facility within the Al-Nabil Company for Food Industries in Jeddah, pointing out that it is targeted to start investment spending operations to construct the new factory in the coming months, while it is expected to operate. And start sales during the second half of next year.
He stated that investment spending operations on the new factory in Saudi Arabia are scheduled to continue until 2025, where the initial investments at that stage are estimated at 65 million dirhams, noting that the expansion in Saudi Arabia is a strategic investment in the largest market in the Gulf Cooperation Council countries, in an effort to The group to maximize production locally, and consolidate its presence in the Saudi market.
Smith stressed that Agthia has sufficient capabilities to initiate acquisitions, which are in line with its long-term strategy, in addition to the group's ability to finance more acquisitions, which could take place if they serve and fit the criteria of its strategy, as it is constantly studying all Market opportunities for acquisitions.
He stated that Agthia enjoys low levels of net indebtedness, and its financial statements ensure the continuity of the group's strong position, as net debt to earnings before interest, taxes, depreciation and amortization is estimated at 2.4 times.
On the group’s plans for the second half of the year, Smith said: “Our focus will remain on integrating the companies’ businesses, enhancing their businesses, and achieving the maximum and optimal benefit from mergers, some of which may include secondary investment plans aimed at enhancing the efficiency of the group’s operations, and we are moving forward. To deliver on our promises to diversify our business and create growth opportunities.”
Smith indicated that the group's assets rose to 6.3 billion dirhams at the end of the first half of this year, in addition to achieving strong revenue growth, and an increase in net profits by 74%, to reach 118 million dirhams, after it succeeded in integrating the businesses of the companies acquired by the group. In 2021, it will be included in its consolidated financial statements, and to enhance the investment return of those companies.
Smith expected that Agthia would reap the fruits of the executed acquisitions in 2022, in line with the group’s strategy for 2025, saying: “We have laid the foundations for transforming the group towards a business model based on consumer products, which we expect to have a great impact on the group’s performance during the course of the year. the next 12 months.”
He added, "We achieved revenues of two billion dirhams during the first half of this year, and we are likely to achieve similar revenues during the remainder of this year."
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Agthia Group CEO, Alan Smith, said that the group's products currently reach more than 45 markets in North America, Europe, Asia, North Africa and the Middle East, and the contribution of exports from the consumer business sector and the international business sector to revenue increased by 84.5%, and 4.9%, respectively, on a quarterly basis, while the group's consumer business sector represented 73% of the group's total sales, which amounted to 1.5 billion dirhams.
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