Agthia Group PJSC, one of the region’s leading food and beverage companies, has signed a Memorandum of Understanding (MoU) with Microsoft UAE, offering scope to revolutionise everything from customer service to production, procurement, and employee engagement, and marking a significant milestone in Agthia's journey to become a regional digital leader in the consumer-packaged goods (CPG) industry. The MoU focusses on:Revolutionizing Customer Experience with AI: One of the key initiatives under the MOU is the early adoption of Artificial Intelligence (AI) technologies in the UAE, the implementation of which into Agthia’s Water Home Delivery Contact Center is already improving our services to and interactions with customers.Establishing Smart Retail Stores: Agthia will also aim to leverage MS Dynamics Retail and POS solutions to establish smart and best-in-class digital stores, starting with our healthy snacks and coffee brand Abu Auf prior to scaling across the group.Enhancing Employee Engagement and Learning: Agthia has commenced the deployment of Microsoft Viva to improve employee experience, engagement, and continuous learning, helping to further strengthen the Group’s reputation as an innovative and engaging workplace.Alan Smith, Group Chief Executive Officer of Agthia commented, "Our work with Microsoft will play a pivotal role in Agthia’s ongoing digital transformation, utilizing new tools to navigate the digital landscape and identify opportunities for market expansion, operational excellence and commercial success, while accelerating innovation and responsible, sustainable business practices throughout the FMCG value chain”.Vanderlei Santos, Chief Digital Officer of Agthia added, "We are delighted to embark on this transformative journey with Microsoft that enables us to offer our customers a truly personalized experience, and we look forward to providing unparalleled value to our customers and employees, leveraging Microsoft’s experience and comprehensive suite of technologies. Consistent with our five-year growth strategy, this underlines our commitment to becoming a consumer data-driven organization through accelerating our digital agenda.”

Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced the completion of its acquisition of a 60% stake in Auf Group, a specialised healthy snacks and coffee manufacturer and retailer in Egypt.The acquisition enhances Agthia’s footprint in the attractive Egyptian snacking market, which is forecast to grow from around AED 8.7 billion ($2.3 billion) in 2020 to around AED 11.2 billion ($3.05 billion) by the end of 2024, according to Euromonitor. It also strengthens Agthia’s position as a leading regional consumer packaged goods (CPG) company, building on last year’s acquisitions of BMB Group (a leading manufacturer of healthy snacks), Al Foah (the world’s largest dates receiving and processing business), Al Faysal Bakery and Sweets (a leading industrial bakery in Kuwait), Nabil Foods (a Jordan-based leading regional processed meat producer), and Atyab (an Egyptian processed meat producer).Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “The acquisition of Auf Group aligns with our 2025 growth strategy to acquire, integrate and grow attractive businesses in value-add categories. Egypt remains a strategic target for Agthia, as one of the MENA region’s fastest-growing consumer markets. We continue to identify opportunities to grow our presence there while strengthening our F&B leadership in the Middle East and beyond.”  Alan Smith, Chief Executive Officer of Agthia Group, said: “This is an important acquisition for Agthia that further expands our footprint in the snacking and healthy food verticals. We look forward to integrating Auf Group as part of Agthia while monetizing synergies and growth opportunities. We are also excited to expand our presence in Egypt and look forward to working closely with the Auf Group team to bolster their strengths and capabilities.”Agthia has acquired 60% of Auf Group, with Auf Group’s founders retaining a 30% stake and continuing to actively lead the company with the support of Agthia’s regional footprint and operational expertise. Tanmiya Capital Ventures, an Egyptian private equity firm that invested in Auf Group in 2019, remains a shareholder of the remaining 10% stake.Ahmed Auf, Chief Executive Officer of Auf Group, said: “This transaction represents a significant milestone in Auf Group’s history, and we look forward to working alongside the Agthia team to build on our success to date. Our focus remains on maintaining our unique position in the Egyptian snacking market while expanding our reach and footprint.”Established in 2010, Auf Group processes, manufactures, retails and distributes a broad portfolio of products across Egypt including coffee, nuts, healthy snacks and other confectionery products sold under the Abu Auf master brand. The company has plans to expand its footprint across the UAE, and beyond, having recently opened four new stores in key retail locations - including a flagship store in the newly opened Dubai Hills Mall.Freshfields Bruckhaus Deringer LLP acted as international legal counsel, and Matouk Bassiouny & Hennawy as Egyptian counsel, to Agthia. CI Capital acted as financial advisor to Agthia.

 Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced net revenue of AED 954 million for Q3 2022, up 20% year-on-year, following the successful consolidation and integration of recent acquisitions.Group EBITDA increased 23% year-on-year to AED 128 million notwithstanding significant upwards pressure on raw material costs in the period, testament to both strong cost discipline and leveraging synergies across new verticals. Net profit was AED 40.5 million, up 14% on the prior year.Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Agthia’s strong third quarter performance demonstrates management’s proven ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core. In conjunction with its clear strategic priorities, growing capabilities, and strong executive team, I am confident that Agthia will continue to deliver value for all stakeholders in both the near and longer-term as it continues its transformative journey to a leading food and beverage company in the MENAP region and beyond.”Alan Smith, Chief Executive Officer of Agthia Group, said: “Despite a challenging external backdrop, I am pleased to report another quarter of profitable growth, combining strong performance from recently acquired businesses and our enduring focus on efficiency generation. We continue to consolidate our strategic acquisitions made this year and last year and look forward to completing the acquisition of Auf Group – having already secured the necessary approvals from the Board of Directors – to enhance our Egyptian footprint and further expand our snacking division. We remain enthused by the long-term growth opportunity ahead of us.”From a financial perspective:Revenue from Agthia’s Consumer Business Division grew 29% year-on-year, and now represents 76% of the total group, up from 71% in the prior year.Revenue from the Protein & Frozen segment was AED 308 million, up 39% year-on-year, reflecting good portfolio and channel management. On a constant currency basis, adjusting for the recent devaluation in the Egyptian pound, Q3 sales growth was 56% year-on-year.Snacking revenue was AED 182 million for the quarter, up 69% year-on-year and underpinned by strong growth from the Group’s dates business. BMB, consolidated from the start of 2022, contributed AED 55 million.Water & Food revenue was AED 238 million for the quarter, with 1% growth year-on-year reflecting lower demand across the UAE as post-pandemic outbound travel accelerated over the holiday period. Market leadership in UAE bottled water across retail was maintained with a 27.9% share, with good incremental growth across both Food Service and 5-gallon home delivery subscriptions.Agri-business revenue for the quarter was AED 225 million, marginally down year-on-year reflecting lower demand during the summer months, albeit up 10% on a year-to-date basis. Proactive management of mix in the quarter supported stronger profitability year-on-year, offsetting significant inflationary pressures across key commodities.Agthia also announced a strategic long-term lease covering the assets and operations of the UAE frozen bakery business with the Middle East operations of La Lorraine, a Belgian-based Bakery Group with over 80 years of milling and bakery experience.The Group’s total assets stood at AED 6.6 billion as of 30th September 2022, while total shareholders’ equity for the period stood at AED 2.8 billion.In line with Agthia’s semi-annual dividend distribution policy, a cash dividend equivalent to 8.25 fils per share for the first half of 2022 was disbursed post all subsequent approvals on 1st October 2022. Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced net revenue of AED 954 million for Q3 2022, up 20% year-on-year, following the successful consolidation and integration of recent acquisitions.Group EBITDA increased 23% year-on-year to AED 128 million notwithstanding significant upwards pressure on raw material costs in the period, testament to both strong cost discipline and leveraging synergies across new verticals. Net profit was AED 40.5 million, up 14% on the prior year.Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Agthia’s strong third quarter performance demonstrates management’s proven ability to acquire and consolidate value accretive businesses while leveraging synergies and maintaining a profitable core. In conjunction with its clear strategic priorities, growing capabilities, and strong executive team, I am confident that Agthia will continue to deliver value for all stakeholders in both the near and longer-term as it continues its transformative journey to a leading food and beverage company in the MENAP region and beyond.”Alan Smith, Chief Executive Officer of Agthia Group, said: “Despite a challenging external backdrop, I am pleased to report another quarter of profitable growth, combining strong performance from recently acquired businesses and our enduring focus on efficiency generation. We continue to consolidate our strategic acquisitions made this year and last year and look forward to completing the acquisition of Auf Group – having already secured the necessary approvals from the Board of Directors – to enhance our Egyptian footprint and further expand our snacking division. We remain enthused by the long-term growth opportunity ahead of us.”From a financial perspective:Revenue from Agthia’s Consumer Business Division grew 29% year-on-year, and now represents 76% of the total group, up from 71% in the prior year.Revenue from the Protein & Frozen segment was AED 308 million, up 39% year-on-year, reflecting good portfolio and channel management. On a constant currency basis, adjusting for the recent devaluation in the Egyptian pound, Q3 sales growth was 56% year-on-year.Snacking revenue was AED 182 million for the quarter, up 69% year-on-year and underpinned by strong growth from the Group’s dates business. BMB, consolidated from the start of 2022, contributed AED 55 million.Water & Food revenue was AED 238 million for the quarter, with 1% growth year-on-year reflecting lower demand across the UAE as post-pandemic outbound travel accelerated over the holiday period. Market leadership in UAE bottled water across retail was maintained with a 27.9% share, with good incremental growth across both Food Service and 5-gallon home delivery subscriptions.Agri-business revenue for the quarter was AED 225 million, marginally down year-on-year reflecting lower demand during the summer months, albeit up 10% on a year-to-date basis. Proactive management of mix in the quarter supported stronger profitability year-on-year, offsetting significant inflationary pressures across key commodities.Agthia also announced a strategic long-term lease covering the assets and operations of the UAE frozen bakery business with the Middle East operations of La Lorraine, a Belgian-based Bakery Group with over 80 years of milling and bakery experience.The Group’s total assets stood at AED 6.6 billion as of 30th September 2022, while total shareholders’ equity for the period stood at AED 2.8 billion.In line with Agthia’s semi-annual dividend distribution policy, a cash dividend equivalent to 8.25 fils per share for the first half of 2022 was disbursed post all subsequent approvals on 1st October 2022.