Saturday 22 Feb
Emirati food and beverage company, Agthia Group, has increased its ownership stake in Abu Auf, a healthy snacks and coffee company, to 80%. This acquisition of an additional 10% stake was disclosed on the Abu Dhabi Securities Exchange on Thursday.
This strategic move aligns with Agthia's growth strategy,
focusing on high-potential categories and building upon existing successful
partnerships. The Abu Auf family will continue to manage the business, ensuring
the maintenance of agility, innovation, and operational excellence.
Agthia, majority-owned by the Abu Dhabi government
through ADQ, initially acquired a 60% stake in Abu Auf in 2022, followed by an additional
10% in February of last year.
Abu Auf has experienced significant growth under Agthia's
ownership. Over the past two years, the company has expanded its retail
footprint by opening over 100 new stores and boosting its earnings before
interest, taxes, depreciation, and amortization (EBITDA) by more than 70% in
dirhams. Despite a substantial devaluation of the Egyptian pound against the
dollar (over 60% since March 2024), Abu Auf's revenues still grew by 33%
year-on-year in dirhams in 2024, according to Agthia's statement.
Founded in 2010, Abu Auf manufactures, distributes, and
operates retail stores and specialized kiosks offering healthy snacks,
including coffee, nuts, dates, dried fruits, and other kitchen staples.
Agthia's assets span across the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey, and Jordan. As part of its strategy to become a leading food company in the Middle East, Agthia has made several acquisitions since late 2020, including BMP Group (healthy snacks and innovative foods in the GCC), Al Foah Dates, Atyab Egypt, Kuwaiti Faisal Bakery and Sweets, and Jordanian Al Nabil Food Industries.
