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Agthia Group made acquisitions worth more than AED2.3 billion ($626.19 million) last year, according to CEO Alan Smith.
In addition to expanding in Saudi Arabia, the group is also making new acquisitions in Egypt, he told Emirates News Agency (WAM).
The group aims to expand geographically, particularly in Saudi Arabia and other markets such as Egypt and Pakistan, Smith said, noting that it acquired a 60 percent stake in Egypt’s Abu Auf Group.
He said Agthia will invest nearly AED 90 million in its expansion plan in Saudi Arabia to build a new industrial facility within the premises of Al Nabil Food Industries in Jeddah, confirming that investment in the construction of the new facility is expected to begin in the next few moon.
Smith also stressed that Agthia can make its planned acquisitions in line with its long-term strategy, stressing the group’s ability to fund further acquisitions, which will go ahead if they meet its strategic criteria.
He noted that Agthia has a low level of debt and a solid financial position, adding that the group’s net debt to earnings before interest, tax, depreciation and amortization is estimated at 2.4 times.
He also expects the group to benefit from the 2022 acquisition results in line with its strategy.
“We have laid the groundwork for the group’s transition to a consumer goods-based business model, which we expect will have a significant impact on the group’s performance over the next 12 months,” Smith said.
The group’s products are currently available in more than 45 markets in North America, Europe, Asia, North Africa and the Middle East. The contribution of exports from the consumer and international business segments to group revenue increased by 84.5% and 4.9% respectively. By comparison, the group’s consumer business segment accounts for 73 percent of its total sales, worth AED1.5 billion each quarter, he said.
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