Qatar’s central bank predicts 3.5% GDP growth in 2022
RIYADH: Agthia Group PJSC, one of the region’s leading agribusiness companies, recorded a 58% increase in net sales of over one billion dirhams ($272 million) in the first quarter of 2022, following the success of its strategy of entering new markets and acquiring new food companies.
The company’s quarterly result reflects the change in business focus last year when it acquired five companies, including Al Foah, Al Faysal Bakery & Sweets, Nabil Foods, Atyab and BMB Group.
“In 2021, we defined our strategy to diversify our activities. We wanted to diversify our revenue by moving into higher-margin consumer goods categories and relying less on the commoditized wallet. And to do that, we had to grow,” the company’s CEO, Alan Smith, told Arab News.
We are keen to explore opportunities in the Saudi market.
Alan Smith, CEO
Unsurprisingly, the company’s international operations in the first quarter of 2022 account for 51% of its revenue. Revenue for the same period is up 58% compared to the first quarter of 2021.
“This revenue growth was driven by our revenue diversification and the consolidation of newly acquired businesses, as well as our industry-leading cost optimization initiatives and unmatched ability to improve productivity. said Smith.
“In the first quarter of 2022, our attention was primarily focused on the seamless integration of entities acquired in 2021,” he added.
The Group’s net profit attributable to shareholders was 82 million UAE dirhams for the quarter, an increase of 64% compared to the first quarter of 2021.
Eyes on new markets
After diversifying and acquiring major food and water companies, the company now has its sights set on new markets in the Middle East.
“What we are focusing on now is continuing to look at the potential of the markets in the Middle East, North Africa, Afghanistan and Pakistan. We are looking for opportunities that fit the business and align with our overall strategy,” said Smith.
The company has made significant investments in Egypt, Jordan and the United Arab Emirates. Additionally, it intends to increase its presence in Saudi Arabia.
“Saudi Arabia is a big consumer market and increasing our footprint here is part of our five-year strategy, and we want to explore opportunities in the Saudi market,” he noted.
He added: “The ambitious Vision 2030 is exciting for everyone. There was a big change in the second half of last year, with people going out more. And I think that’s a trend that will continue to grow.
According to the CEO of the group, the company has done quite well in the Kingdom in terms of protein (Nabil) and snacking (BMB) and still wants to do more business. There is room between improving the water category and restructuring to ensure better performance.
“We see significant growth room to continue to grow as Agthia continues to pursue full integration as a top priority in 2022,” Smith said.
What else? The company has not stopped window shopping for new ventures. His team is constantly on the lookout for new opportunities that match the group’s appetite.
“We spend a lot of time evaluating these organizations, whether it’s people or capabilities. We also spent a lot of time identifying potential synergies,” Smith concluded.