The Agthia Group, a prominent entity in the UAE’s food and beverage sector, has recently inaugurated a Dhs90m protein production plant within the bounds of Jeddah’s Industrial City 1. This move signifies the company’s foray into the Saudi Arabian market.
Constructed to meet the growing consumer demand for Agthia’s esteemed protein product lines, this initiative aligns with the group’s strategic plan to explore and harness the considerable development prospects in the GCC region, particularly within its biggest market.
By boosting local production capabilities, the group aims to leverage favourable economic conditions, enhance its market presence, and solidify its position within this highly rewarding market,
Agthia mentioned in a disclosure to the stock exchange.
The newly established facility spans over 9,000 square meters and boasts an impressive yearly production capacity of over 9,000 tonnes. It houses two production lines capable of creating in excess of 50 distinct stock-keeping units (SKUs), backed by a versatile supply chain comprising over 69 raw materials.
Equipped with its own microbiology and sensory evaluation labs, the Jeddah plant upholds stringent quality control protocols and product development standards.
With forecasts suggesting the Saudi Arabian processed meat market could reach a valuation of $7.11bn by 2030, growing at a CAGR of 5.49%, Agthia’s investment in the new manufacturing site is strategically poised to exploit this predicted growth.
Alan Smith, CEO of Agthia Group, states, By bolstering our presence in Saudi Arabia’s rapidly expanding processed meat market, we are not only reinforcing our market position but also contributing significantly to the diversification and growth of our regional product portfolio.
Agthia has reported a 22.6 per cent increase in quarterly revenue year-on-year to Dhs1.45bn for Q1 2024, propelled by a strategic pivot in the company’s product mix towards higher-growth market segments.
The Abu Dhabi-listed company also recorded a 32 per cent year-on-year profit surge, reaching Dhs127.6m. Despite economic headwinds such as foreign exchange fluctuations and the recent introduction of income tax in the UAE, the firm’s profit margin expanded by 63 basis points to 8.8 per cent.
Moreover, the company’s earnings before interests, taxes, depreciation, and amortisation (EBITDA) saw a 23.4 per cent rise to Dhs232.6m for the first quarter, compared to the corresponding period in the previous year.
