Free cash flow rises to Dh521 million as leverage declines and cash reserves increase to Dh870 million.
Dubai: Abu Dhabi-based Agthia Group has proposed a 14.4% increase in its interim dividend after reporting more than double growth in first-half net profit and stronger cash generation.
The food and beverage company proposed an interim cash dividend of 11.792 fils per share for the six months ended June 30, marking a second consecutive increase in shareholder returns.
Net profit surged 147.4% year-on-year to Dh121.4 million in the first half of 2026, while revenue grew 7.4% to Dh2.6 billion. EBITDA rose 35.8% to Dh310.5 million, with margins expanding by 250 basis points to 11.9%.
Revenue growth was supported by one-off sales under the UAE food security programme, highlighting Agthia’s role in strengthening national food supply resilience.
Cash flow strengthens balance sheet
Agthia generated Dh521.4 million in free cash flow during the first half of 2026, marking a turnaround from the outflow recorded in the same period a year earlier.
The group improved its financial leverage, reducing its net debt-to-EBITDA ratio to 1.8 times from 2.9 times at the end of December 2025, while closing June with cash reserves of Dh869.6 million.
Total assets grew to Dh6.5 billion by the end of the reporting period, reflecting continued balance sheet strength.
The proposed increase follows a 10% dividend hike recommended for the second half of 2025, extending the company’s trend of delivering higher shareholder returns.
Second-quarter earnings strengthen
Agthia reported second-quarter revenue of Dh1.3 billion, up 11.9% compared with the same period last year.
Quarterly EBITDA surged 172.5% to Dh117.2 million, while the EBITDA margin expanded by 542 basis points to 9.2%, reflecting improved operational performance.
Net profit for the three-month period stood at Dh24.5 million.
Water and food segments drive growth
Agthia’s Water and Food division recorded a 38.9% increase in second-quarter revenue, supported by stronger demand and market gains.
Al Ain, which Agthia identified as its first billion-dirham brand, expanded its bottled water value market share by two percentage points compared with the same period last year.
The Protein and Frozen division delivered 22% revenue growth, driven by a 32.5% increase from Nabil. Atyab revenue rose 8.1%, while production continued to ramp up at the group’s Saudi protein facility.
Agri-Business revenue increased 11%, supported by stronger demand for animal feed, with Agrivita feed sales rising 23.3%.
Abu Auf continued its growth momentum during the quarter, posting a 23.7% increase in revenue, while Agthia progressed with restructuring initiatives across its Al Foah and BMB snacking businesses.
