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UAE-based food and beverage giant Agthia has expanded operations in Saudi Arabia and Egypt, while integrating sustainability and digital innovation to meet evolving consumer demand. The UAE-headquartered food and beverage giant Agthia Group is advancing its regional growth strategy with recent investments in Saudi Arabia and Egypt, while navigating economic shifts and evolving consumer demand, Chief Growth Officer Rafik Lawendy told Zawya Projects. In July 2024, the ADX-listed company inaugurated a 90 million UAE dirhams ($24.5 million) protein facility in Saudi Arabia. “This investment reinforces Agthia’s footprint in the GCC’s largest market, supporting the company’s commitment to localising production at competitive economics,” said Lawendy. In Egypt, Agthia expanded its processing capabilities with a new IQF strawberry line, which became operational in early 2024. “This facility plays a central role in our export-driven strategy, helping offset the impact of currency fluctuations by increasing sales to regional and global markets,” the Agthia executive said. Last week, the Group announced the consolidation of an additional 10 percent stake in Abu Auf, a leading Egyptian healthy snacks and coffee brand, increasing its ownership to 80 percent. “Egypt remains a strategic market due to its high demand for protein, coffee, and snacks, and its role as a cost-efficient manufacturing hub for exports, Lawendy said. Supply chain resilience Agthia operates in seven key markets—Egypt, Jordan, Saudi Arabia, Kuwait, Turkey, Oman, and the UAE—while reaching 67 global markets. In the UAE, it leads in water and food, snacking, protein and frozen, and agri-business, while maintaining dominance in protein and frozen in both Egypt and Jordan. With geopolitical tensions and rising food costs in play, the company has increased its stock coverage ratio to safeguard supply chain continuity and keep products flowing across all markets. Lawendy acknowledged that global prices of key commodity categories such as cocoa and coffee have remained elevated. “Our central procurement team continuously monitors market trends, enabling the Group to make informed, strategic purchasing decisions that optimise costs and secure the best prices,” he said. Flexible sourcing, diverse suppliers, and hedging are also in the mix to shield profits and ensure stability. “Operating across multiple markets and product categories allow us to navigate uncertainties with agility and resilience,” he said. Balancing growth with sustainability As consumers clamour for greener options, Agthia is integrating environmental responsibility into its products and operations. Studies indicate that 88.5 percent of consumers are willing to pay a premium for sustainable products, underscoring the growing preference for eco-friendly packaging, ethical sourcing, and carbon-conscious production, said Lawendy. The company slashed CO2 emissions by 6.3 percent year-over-year and rolled out fully recyclable packaging, 100 percent rPET bottles, and local sourcing to shrink its footprint. From nutrient-packed functional foods to AI-driven nutrition personalisation, precision fermentation, and alternative proteins, the company is focused on staying ahead of evolving market demands, the Agthia official emphasised. “We are integrating advanced food science and digital insights to stay ahead of evolving consumer needs,” he said. Agthia has incorporated AI applications into its operations, including an AI image recognition model for date classification developed in partnership with Mohamed Bin Zayed University of Artificial Intelligence (MBZUAI) and Next50. “As the world’s largest dates processor, this model enables us to accurately identify and classify the major types of dates sourced from local farmers—optimising our value chain and enhancing efficiency,” explained Lawendy. He said the company’s Central Innovation Team has played a key role in its growth with innovation contributing 68 percent of Agthia’s 2024 growth (excluding one-off records in the first quarter of 2024). Financial growth While the full-year financial results for 2024 are yet to be released, preliminary figures indicate a 7.7 percent increase in group net revenue to AED 4.9 billion in 2024, driven by strong performance in snacking, agri-business, and water and food. Reported net profit grew by 7.4 percent year-on-year to AED 321.8 million. Interestingly, digital revenue reached AED 178 million ($48.5 million), accounting for 5.1 percent of core sales. Looking ahead, Lawendy said 2025 will be a pivotal year as the company lays the foundation for its 2030 strategy. “With a strong balance sheet and disciplined capital allocation, the Group is well-positioned to strengthen its regional presence and drive sustainable global expansion,” he said. |
