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Earnings Report

Agthia Group

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Agthia Group reported stronger Q1 2026 results supported by growth across its Water & Food, Agri-Business, and Protein & Frozen segments, alongside improving margins and continued product innovation momentum. The Group operates across packaged water, food, snacking, protein, frozen foods, and agri-business operations across the UAE and regional markets.

The company highlighted continued progress on its strategic transformation initiatives, digital expansion, operational efficiency, and export growth during the quarter.

2. Financial Performance Snapshot

  • Revenue: AED 1.33B

  • Gross profit: AED 419.1M

  • EBITDA: AED 193.3M

  • Operating profit: AED 134.3M

  • Net profit: AED 96.9M

  • Net profit attributable to shareholders: AED 92.3M

  • Basic EPS: AED 0.111

Compared to Q1 2025:

  • Revenue increased 3.3% YoY

  • Gross profit increased 15.9% YoY

  • EBITDA increased 4.1% YoY

  • Net profit increased 12.5% YoY

3. Operational Highlights & Key Metrics

  • Water & Food revenue: AED 330M (+14.6% YoY)

  • Agri-Business revenue: AED 382M (+13.0% YoY)

  • Protein & Frozen revenue: AED 257M (+4.1% YoY)

  • Snacking revenue: AED 357M (-13.0% YoY)

  • Revenue from product innovation: AED 61.6M

  • Digital revenue: AED 92.0M (+22.5% YoY)

  • Exports from Egypt: AED 23.9M (+32.5% YoY)

  • Free cash flow: AED 82M

Additional highlights:

  • Gross profit margin expanded to 31.6%

  • EBITDA margin improved to 14.6%

  • Cash conversion cycle improved by 15 days to 40 days

  • Working capital as percentage of sales declined to 8.0%

4. Key Performance Drivers

  • Strong growth in UAE bottled water and Home & Office Services operations

  • Higher pricing, volume growth, and product innovation contribution supported revenue expansion

  • Gross margin improvement across Water & Food, Protein & Frozen, and Snacking segments

  • Digital sales growth and export expansion contributed positively to performance

  • Operational efficiency initiatives and working capital improvements strengthened cash flow

The Group also recorded:

  • AED 2.9M savings from sustainability productivity projects

  • 21.4% reduction in electricity ratio YoY

  • 19.9% reduction in emissions ratio YoY

  • 13.6% reduction in water ratio YoY

5. Outlook & Forward Guidance

  • Continued focus on becoming a regional food & beverage leader through innovation and expansion

  • Ongoing investment in digitalization, product innovation, and operational efficiency

  • Expansion of protein manufacturing capabilities in Saudi Arabia remains a strategic priority

  • Management continues focusing on export growth and regional market expansion

  • Agthia aims to strengthen profitability, cash generation, and shareholder returns through disciplined execution

The company also highlighted continued investment into innovation, ESG initiatives, and scaling consumer-centric brands across regional markets.

6. 🧾 Investor Takeaway

Agthia delivered stronger Q1 2026 profitability supported by robust Water & Food growth, improving margins, digital expansion, product innovation, and stronger operational efficiency, while continuing to execute its regional growth and transformation strategy.