Earnings Report
Agthia Group
1. Company Overview & Earnings Context
Agthia Group PJSC is an Abu Dhabi-based, ADX-listed food and beverage group operating across agriculture, water and food, protein and frozen vegetables, and snacks.
Major shareholder: General Holding Corporation PJSC (SENAAT) owns 62.9% of Agthia. SENAAT is wholly owned by ADQ, which is wholly owned by the Government of Abu Dhabi.
Principal activities: Establishing, investing in, trading and operating businesses in the food and beverage sector.
Reporting period: Nine months ended 30 September 2026, compared with 9M 2025.
Management report date: 4 November 2026, signed by Chairman Khalifa Sultan Al Suwaidi.
Agthia reported higher revenue, gross profit, EBITDA and net profit during 9M 2026. However, management highlighted that reported growth was affected by one-off items and a more favourable comparison against the previous year. Excluding one-off items, underlying EBITDA and net profit declined, indicating that operating cost pressures remain significant.
The operating environment was also affected by higher procurement, raw-material, logistics and distribution costs. Management noted that previously procured inventory had been consumed and replenished at higher prevailing market prices, putting pressure on margins.
2. Financial Performance Snapshot
All figures in AED million unless otherwise stated.
Underlying-performance note
Reported revenue increased by 9.6%, including one-off food-security programme sales. Excluding these sales, underlying revenue increased by approximately 1.2%.
Reported EBITDA increased by 36.7%, but management stated that underlying EBITDA declined by 9.2% after excluding one-off items.
Reported net profit increased by AED 101.5 million to AED 154.6 million. However, underlying net profit declined by 28.2% during the period.
Gross profit margin improved by 113 basis points to 29.7%, although several business units continued to face higher input and distribution costs.
Interpretation: The headline results show a substantial improvement in reported profitability. However, the decline in underlying EBITDA and net profit suggests that the improvement should not be interpreted as an equivalent increase in recurring operating profitability. Cost inflation and business-specific pressures remain important.
3. Operating Performance & Major Programs
Agthia operates through two main divisions: Agri Business Division (ABD) and Consumer Business Division (CBD), with four reported operating segments.
A. Segment revenue performance
B. Water & Food
Revenue increased by 30.5% during 9M 2026.
The Q3 segment recorded revenue growth of 36.7%, supported partly by AED 104.7 million of one-off sales related to the UAE food-security programme.
Excluding the one-off activity, Q3 Water & Food revenue increased by 2.5%.
UAE water revenue, excluding food-security programme sales, increased by 8.0% in Q3.
International water sales increased by 1.2%, with growth in Turkey and Kuwait partly offset by softer performance in Saudi Arabia and Oman.
The food portfolio was affected by the transfer of municipality store operations to a third-party operator.
Assessment: The segment delivered strong reported revenue growth, but the one-off programme sales and margin pressure from higher raw-material costs mean that the reported growth requires careful interpretation.
C. Agri-Business
Revenue increased by 11.6% during 9M 2026.
Q3 revenue growth was supported by feed sales, which increased by 18.3%, while flour sales grew by 1.5%.
Segment EBITDA declined by 9.3% to AED 156.3 million.
EBITDA margin contracted by 350 basis points to 15.2%.
Management attributed pressure mainly to higher input costs as lower-cost inventory was consumed and replaced at prevailing market prices, alongside increased distribution costs.
Assessment: Revenue growth remained positive, but profitability weakened because of cost inflation and logistics-related pressures.
D. Snacks
Revenue declined by 17.2% during 9M 2026.
Q3 revenue declined by 14.7% year-on-year.
Abu Auf continued expanding its retail presence, adding 69 stores since the beginning of the year and reaching 468 stores by the end of 9M 2026.
Abu Auf's ground coffee market share increased to 12.5% on a moving annual total basis to August 2026.
Al Foah faced lower export sales due to regional logistics-route disruptions.
BMB continued its transformation programme, including portfolio rationalisation and route-to-market improvements.
Segment EBITDA improved to AED 54.4 million from a loss of AED 22.6 million in 9M 2025.
Assessment: Snacks delivered a significant improvement in profitability despite lower revenue. Margin expansion and the absence of certain prior-year impairment provisions supported the turnaround.
E. Protein & Frozen
Revenue increased by 17.1% during 9M 2026.
Q3 revenue grew by 25.1%.
Growth was supported by Nabil, Frozen Vegetables and Tomato Paste, and Atyab.
The commissioning of Phase II of Agthia's KSA facility in Q1 2026 added production capacity.
KSA protein sales increased significantly, supporting the segment's performance.
Segment EBITDA declined by 10.0% to AED 53.6 million, while EBITDA margin decreased to 6.2%.
Assessment: Revenue growth was strong, but higher direct material costs, particularly beef, continued to affect margins.
F. Innovation, sustainability and digital initiatives
Management highlighted several initiatives supporting longer-term development:
Product innovation: New products across snacks, protein, water and food, including functional beverages, date-based products, new coffee formats and expanded protein offerings.
Sustainability: A 10.7% reduction in emissions ratio, an 8.4% reduction in electricity ratio and a 12.0% reduction in water ratio year-on-year.
Renewable energy: An 8.0% increase in renewable solar electricity generation.
E-commerce: Group e-commerce sales increased by 16.4% year-on-year during 9M 2026.
Digital transformation: Roll-out of a group-wide digital shelf-monitoring solution and progress on the Data Foundation programme and practical AI applications.
4. Key Performance Drivers
Positive drivers
Revenue growth across major businesses: Water & Food, Agri-Business and Protein & Frozen all recorded positive 9M revenue growth.
Improved gross margin: Group gross profit margin increased to 29.7%, supported by a stronger overall gross profit contribution.
Snacks profitability recovery: The Snacks segment moved from a negative EBITDA position in the prior-year period to positive EBITDA of AED 54.4 million.
Protein & Frozen expansion: New production capacity in Saudi Arabia supported higher sales and business growth.
Stronger operating cash generation: Operating cash flow increased substantially compared with the previous year.
Digital and product development: Innovation and e-commerce initiatives provide potential support for future growth and operational efficiency.
Negative drivers and risks
Input-cost inflation: Higher procurement and raw-material costs are increasingly reflected in the cost base as older, lower-cost inventory is consumed.
Margin pressure: Water & Food, Agri-Business and Protein & Frozen all faced pressure on EBITDA margins.
Snacks revenue decline: Despite improved profitability, Snacks continued to report lower revenue, with Al Foah and BMB affected by export and logistics challenges.
Regional logistics disruption: Export routes and distribution costs affected certain businesses.
One-off contribution to reported results: The difference between reported and underlying performance indicates that headline growth does not fully reflect recurring operating momentum.
Receivables and working capital: Trade and other receivables increased, and management identified higher receivables as a major reason for working-capital cash outflow.
5. Balance Sheet, Backlog & Cash Flow
A. Balance sheet position
Figures in AED million; 30 September 2026 compared with 31 December 2025.
Borrowings and debt position
Current bank borrowings: AED 287.4 million.
Non-current bank borrowings: AED 1,615.5 million.
Total bank borrowings: approximately AED 1,902.9 million.
Lease liabilities: approximately AED 154.8 million.
Management reported net debt of approximately AED 1.4 billion.
Net debt-to-EBITDA ratio improved to 2.4x from 2.9x in December 2025.
Management noted that the improvement in leverage was mainly driven by the increase in last-twelve-month EBITDA. The Group's borrowings are denominated in USD and AED, and management stated that it continues to obtain favourable borrowing terms through its banking relationships.
Assessment: Agthia maintains a sizeable asset base and positive equity position. However, borrowings remain substantial, and the increase in total liabilities means that continued debt management and cash generation are important.
B. Cash flow performance
Operating cash flow increased significantly to AED 262.3 million from AED 35.3 million.Management attributed working-capital cash outflow mainly to an increase in trade and other receivables.
The cash conversion cycle improved from 60 days in 9M 2025 to 46 days in 9M 2026.
Net capital expenditure was AED 83.9 million, equivalent to approximately 2.1% of revenue.
Free cash flow improved to AED 212.1 million compared with an outflow of AED 17.9 million in the prior-year period.
Financing cash outflow included shareholder dividends, interest payments, lease-liability repayments and other financing movements.
Assessment: Cash generation improved considerably, providing support for capital expenditure and debt servicing. Nevertheless, the rise in receivables remains an area to monitor.
C. Backlog, commitments and investment pipeline
The interim statements do not disclose a conventional customer order backlog.
Capital commitments stood at AED 54.0 million, compared with AED 21.2 million at December 2025.
Bank guarantees amounted to AED 145.8 million, compared with AED 103.8 million at December 2025.
The Group continued to invest in production capacity, innovation, digital capabilities and operational efficiency.
These commitments should not be treated as contracted revenue or a conventional order backlog.
6. Investor Takeaway
Agthia delivered strong reported financial growth in 9M 2026, with revenue increasing by 9.6%, EBITDA by 36.7% and net profit reaching AED 154.6 million. The improvement was supported by stronger revenue across several segments, better gross margins and a significant recovery in Snacks profitability.
However, the underlying performance presents a more cautious picture. Management disclosed that underlying EBITDA declined by 9.2% and underlying net profit declined by 28.2% after excluding one-off items. Rising input costs, logistics disruption and weaker margins in some businesses remain key challenges.
The Group's cash-flow performance improved significantly, with operating cash flow reaching AED 262.3 million and free cash flow reaching AED 212.1 million. Its net debt-to-EBITDA ratio also improved to 2.4x. These are positive developments, although total bank borrowings remain close to AED 1.9 billion.
Overall investor view: Agthia has a diversified food and beverage platform, strong market presence and improving cash generation. The key question for investors is whether the Group can convert reported growth into sustainable underlying profit growth while managing input-cost inflation and debt. Future performance will depend on margin recovery, the continued expansion of Protein & Frozen, the Snacks turnaround and stronger recurring growth in Water & Food.
