Agthia Reports Strong H1 2026 Results, Raises Interim Dividend by 14.4%

Agthia Group PJSC, one of the Middle East's leading food and beverage companies, reported strong financial results for the first half of 2026, driven by higher revenue, improved profitability, stronger cash generation and continued progress under its multi-year transformation strategy.

The company also announced a 14.4% increase in its interim cash dividend, reflecting improved financial performance and a healthier balance sheet.

Revenue and Profit Grow Strongly

For the six months ended 30 June 2026, Agthia reported group revenue of AED 2.6 billion, representing a 7.4% year-on-year increase. The growth was supported by one-off sales under the UAE's food security programme, reinforcing the company's role in supporting national food security initiatives.

EBITDA rose 35.8% to AED 310.5 million, while the EBITDA margin expanded by 250 basis points to 11.9%.

Net profit surged 147.4% year-on-year to AED 121.4 million, reflecting stronger operational performance and the benefits of ongoing transformation initiatives.

During the second quarter, revenue increased 11.9% to AED 1.3 billion, while EBITDA climbed 172.5% to AED 117.2 million, with the EBITDA margin improving to 9.2%. Net profit for the quarter reached AED 24.5 million.

Balance Sheet Strengthens

Agthia reported a significant improvement in its financial position during the first half of the year.

Free cash flow reached AED 521.4 million, compared with a cash outflow during the same period last year.

The company also reduced its net debt-to-EBITDA ratio to 1.8x, down from 2.9x at the end of 2025.

Cash and cash equivalents stood at AED 869.6 million as of 30 June 2026, while total assets increased to AED 6.5 billion, providing additional financial flexibility for future investments and strategic initiatives.

Core Business Segments Deliver Growth

Agthia's core business divisions continued to record strong performance across multiple categories.

The Water and Food segment posted 38.9% revenue growth during the second quarter, supported by the continued expansion of Al Ain Water, which strengthened its leadership in the bottled water market while gaining an additional 2 percentage points in value market share compared with the previous year.

The Protein and Frozen division grew 22%, led by strong performance from Nabil, which recorded 32.5% growth, alongside continued improvements at Atyab, where revenue increased 8.1%. The company also continued ramping up production at its protein manufacturing facility in Saudi Arabia.

The Agri-Business segment recorded 11% growth, driven by strong demand for animal feed, with Agrivita feed sales increasing 23.3%.

Within the Snacking business, Agthia continued restructuring its Al Foah and BMB operations while Abu Auf maintained strong momentum, reporting 23.7% revenue growth during the second quarter.

Interim Dividend Increased

Agthia's Board of Directors recommended an interim cash dividend of 11.792 fils per share for the first half of 2026, representing a 14.4% increase compared with the same period last year.

The increase marks the second consecutive dividend hike following a 10% increase recommended for the second half of 2025 and reflects stronger cash generation alongside improved financial stability.

Leadership Highlights Transformation Progress

Khalifa Sultan Al Suwaidi, Chairman of Agthia's Board, said the dividend increase demonstrates the company's financial discipline and the Board's confidence in its long-term value creation strategy.

He noted that Agthia continues to generate sufficient cash to reward shareholders while investing in future growth opportunities.

Salmeen Alameri, Managing Director and Chief Executive Officer, said the transformation programme launched a year ago is delivering measurable improvements in earnings, margins and cash generation.

He highlighted Agthia's continued support for the UAE's food security agenda while pointing to product innovation across several brands, including Al Ain Water's expansion into functional beverages, new protein offerings from Nabil and Atyab, additional snack products from Abu Auf and Freakin' Awesome, and specialty flour products under Grand Mills.

Alameri also noted that the company reduced its emissions intensity by 26.7% year-on-year while continuing to expand its digital transformation and e-commerce capabilities.

Chief Financial Officer Jeroen Nijs said Agthia's stronger earnings, improved cash flow and lower debt levels have significantly strengthened the company's financial profile.

He added that with nearly AED 870 million in cash and cash equivalents, Agthia is well positioned to manage regional market challenges, continue executing its transformation strategy and enhance long-term shareholder returns.