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Earnings Report

Agthia Group

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Agthia Group PJSC reported a strong Q1 2026 performance, supported by growth across its Water & Food and Agri-Business segments, alongside improving profitability and operational efficiency.

2. Financial Performance Snapshot

  • Revenue: AED 1.33B (+3.3% YoY)

  • Gross profit: AED 419.1M (+15.9% YoY)

  • EBITDA: AED 193.3M (+4.1% YoY)

  • EBITDA margin: 14.6%

  • Net profit: AED 96.9M (+12.5% YoY)

  • Net profit margin: 7.3%

  • Earnings per share (EPS): AED 0.111

3. Operational Highlights & Key Metrics

  • Water & Food revenue: AED 330.5M (+14.6% YoY)

  • Agri-Business revenue: AED 382.2M (+13.0% YoY)

  • Snacking revenue: AED 357.0M (−13.0% YoY)

  • Protein & Frozen revenue: AED 257.1M (+4.1% YoY)

  • Cash & liquidity:

    • Cash & equivalents: AED 462.3M

    • Net debt: AED 1.3B

    • Net debt / EBITDA: 2.8x

  • Cash flow & efficiency:

    • Operating cash flow: AED 85.5M

    • Free cash flow: AED 82.2M

    • Cash conversion cycle: Improved to 40 days (vs 55 days YoY)

  • Digital & innovation:

    • Innovation contributed AED 61.6M to growth

    • E-commerce revenue increased 22.5% YoY

4. Key Performance Drivers

  • Strong growth in Water & Food, supported by bottled water and HOS businesses

  • One-off UAE food security program activity, boosting Agri-Business revenue

  • Margin expansion, driven by improved product mix and operational efficiency

  • Transformation initiatives across Snacking and Protein segments

  • Growth in innovation and e-commerce channels, supporting long-term scalability

5. Outlook & Forward Guidance

  • Continued focus on:

    • Operational efficiency and margin improvement

    • Innovation-led product expansion

    • Digital transformation and ERP integration

    • Supply chain resilience and procurement optimization

  • Management highlighted:

    • Increased regional uncertainty impacting logistics and supply chains

    • Ongoing monitoring of macro and geopolitical developments

    • No formal guidance provided currently due to elevated uncertainty

6. 🧾 Investor Takeaway

Agthia delivered a strong Q1 2026 with improving profitability, stronger margins, and resilient revenue growth, supported by its diversified food and beverage portfolio, operational discipline, and ongoing transformation initiatives.