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Earnings Report

Ghitha Holding

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Ghitha Holding PJSC reported its Q1 2026 results, delivering strong revenue growth with improved profitability from continuing operations, although overall profit was impacted by discontinued segments.

2. Financial Performance Snapshot

  • Revenue: AED 1.62B (+23% YoY)

  • Gross profit: AED 330.8M (+8% YoY)

  • Profit before tax (continuing operations): AED 98.6M (+62% YoY)

  • Net profit (total): AED 59.8M (+14% YoY)

  • Net profit (continuing operations): AED 92.1M (+69% YoY)

  • EPS: AED 0.14 (vs AED 0.08 YoY)

  • Gross margin: ~20% (declined YoY)

3. Operational Highlights & Key Metrics

  • Total assets: AED 10.03B

  • Total equity: AED 6.91B

  • Cash & cash equivalents: AED 602.8M

  • Operating cash flow: AED 131.8M (strong improvement YoY)

  • Revenue mix: Primarily from sale of food & non-food items (100%)

  • Discontinued operations loss: AED 32.3M

4. Key Performance Drivers

Ghitha’s Q1 performance was driven by strong top-line growth across its diversified food and distribution segments, with revenue rising 23% YoY, as seen in the income statement (page 4).

Profitability from continuing operations improved significantly due to:

  • Higher operating scale, supporting revenue expansion

  • Gain of AED 85.4M from partial disposal of an associate, boosting earnings

  • Improved operating leverage, despite rising costs

However, overall net profit growth was moderated by:

  • Losses from discontinued operations (AED 32.3M)

  • Higher SG&A expenses and share of losses from associates, impacting margins

5. Outlook & Forward Guidance

The Group continues to focus on expanding its diversified food platform and optimizing its portfolio, including disposal of non-core assets and investments.

Future performance will depend on execution across core segments, cost management, and contribution from newly acquired businesses, alongside managing discontinued operations.

6. 🧾 Investor Takeaway

Ghitha delivered strong core earnings growth, but overall profitability remains impacted by non-core losses and portfolio restructuring.