Agthia Group carried out acquisitions worth Dhs2.3 billion last year: CEO - GulfToday

Agthia Group carried out acquisitions worth Dhs2.3 billion last year: CEO


Alan Smith, CEO of the Agthia Group.

Alan Smith, CEO of the Agthia Group, said that the total value of the acquisitions carried out by the group last year exceeded Dhs2.3 billion, adding that the group is working on a new acquisition in Egypt, in addition to expanding in Saudi Arabia.

In an interview with the Emirates News Agency (WAM), Smith said that the group aims to expand geographically, most notably in Saudi Arabia and other markets, such as Egypt and Pakistan, noting its acquisition of 60 percent of the Abu Auf Group in Egypt.

He stated that Agthia will invest nearly Dhs90 million in its expansion plans in Saudi Arabia, to establish a new industrial facility within the premises of Al Nabil Food Industries in Jeddah, affirming that it is expected to start investing in the construction of the new facility in the coming months.

Smith also stressed that Agthia could carry out its planned acquisitions in line with its long-term strategy, highlighting the group’s ability to finance further acquisitions, which will go ahead if they meet its strategic criteria.

He noted that Agthia has low debt levels and has a solid financial position, adding that the group’s net debt compared to earnings before interest, taxes, depreciation and amortisation is estimated at 2.4 times.

He also expects the group to benefit from the outcomes of its acquisitions in 2022, in line with its strategy.

“We have established the foundations of the group’s transformation towards a business model based on consumer products, which we expect to have a significant impact on the group’s performance over the next 12 months,” Smith said.

The group’s products are currently available in more than 45 markets in North America, Europe, Asia, North Africa and the Middle East. The contributions of exports from the consumer and international business sectors to the group’s revenues increased by 84.5 per cent and 4.9 per cent, respectively. In contrast, every quarter, the group’s consumer business sector has represented 73 percent of its total sales, valued at Dhs1.5 billion, he said in conclusion.

Related articles