Abu Dhabi: Agthia Group PJSC today announced its financial results for the three-month period ending 31 March 2025. The Group reported AED 1.3 billion in revenue for Q1 2025, reflecting a year-on-year decline of 11.4%. This downturn was attributed to several factors, including the one-time wheat trading activity from the previous year amounting to AED 120 million, the significant devaluation of the Egyptian currency (EGP) in March 2024, and ongoing operational challenges in the dates business. Excluding the impact of the EGP devaluation and the prior year's wheat trading activity, Group revenue would have shown an increase of 5.2% year-on-year.
According to Emirates News Agency, Group EBITDA declined by 20.2% year-on-year to AED 185.7 million, resulting in a margin of 14.5%. This decline indicates ongoing pressures in specific categories. The Net Profit for the quarter was AED 86.1 million, with a margin of 6.7%. The profitability was further impacted by the implementation of the Pillar II corporate tax in the UAE, which increased the Group's effective tax rate to 19.3%, up from 13.5% in the same period last year.
During the quarter, Agthia increased its stake in Abu Auf from 70% to 80%, enhancing integration within the Snacking segment. This move underscores the Group's strong belief in the long-term growth potential of this segment, aligning with evolving consumer trends. Simultaneously, the Group's Board approved the acquisition of Riviere, a leading bottled water HOS player in the UAE. This acquisition is set to expand Agthia's direct-to-consumer footprint and strengthen its leadership in the Water category.
Agthia ended the quarter with a Net Debt-to-EBITDA ratio of 2.4x and AED 321 million in cash and equivalents. This strong financial position supports the Group's continued investment in strategic priorities and growth opportunities.