The UAE Agthia Group said that the total value of the acquisitions it carried out in 2021 exceeded AED2.3 billion ($626 million), adding that it is working on a new acquisition in Egypt, in addition to expanding in Saudi Arabia.
Alan Smith, CEO of the Agthia Group, said the group aims to expand geographically, most notably in Saudi Arabia and other markets, such as Egypt and Pakistan, noting its acquisition of 60% of the Abu Auf Group in Egypt.
He stated that Agthia will invest nearly AED90 million ($24.5 million) in its expansion plans in Saudi Arabia to establish a new industrial facility within the premises of Al Nabil Food Industries in Jeddah.
Smith stressed that the group is expected to start investing in the construction of the new facility in the coming months.
According to the Emirates News Agency (WAM), the investment spending process on the new factory is scheduled to continue until 2025.
The initial investment at this stage is estimated at AED65 million ($17.6 million), Smith said, adding that expanding in Saudi Arabia is considered a strategic investment in the GCC’s largest market.
Agthia could carry out its planned acquisitions in line with its long-term strategy, he remarked, underlining the group’s ability to finance further acquisitions, which will go ahead if they meet its strategic criteria.
On the group's plans for H2 2022, Smith said its focus will remain on integrating the companies’ businesses, bolstering their work, and achieving the maximum and optimal benefit from mergers, some of which may include secondary investment plans aimed at boosting the efficiency of the group’s operations.
He pledged to continue to fulfill the group’s promises towards diversifying its business, and creating opportunities for growth.
Agthia’s net profit attributable to shareholders grew to AED118 million in H1 2022, a 74% increase relative to H1 2021, despite the challenging global inflationary environment.
This performance reflects the impact of the group’s recent acquisitions, as well as its cost optimization efforts as part of its five-year growth strategy.
