- Agthia boosts stake in Abu Auf to 80%, reinforcing its commitment to Egypt’s snack market.
- Abu Auf’s revenue surged 33% year on year in 2024, with over 100 new stores and a 70% rise in EBITDA.
- Agthia’s Egypt exports surged 50% in the first half of 2024, increasing Egypt’s revenue contribution to 20% of the group’s total earnings.
Majority Stake
What is the deal? UAE-based Agthia Group announced its acquisition of an additional 10% stake in Abu Auf, increasing its ownership to 80%.
This comes after Agthia acquired 60% of the Egyptian snack and coffee company, Abu Auf in 2022 in a deal valued at EGP 2.92 billion, This was followed by an additional 10% stake in February 2024.
“This additional investment reflects our belief in the company’s potential and our commitment to bringing their innovative products to more consumers across Egypt and beyond.”
Alan Smith, Chief Executive Officer of Agthia Group
Why does it matter? This acquisition supports Agthia’s MENA expansion strategy, especially in Egypt . This is despite the current 60% devaluation of the Egyptian pound against the dollar. Furthermore, in 2024, Abu Auf’s revenue grew by 33% year-on-year in AED despite a currency devaluation in the Egyptian pound against the dollar.
Over the past two years, Abu Auf has opened more than a 100 new stores and increased EBITDA by over 70%.
In an interview with Ashraq, CEO of Aghthia Alan Smith stated that Agthia’s exports from Egypt surged by 50% in the first half of 2024. He also indicated that Egypt usually contributes 15% to 16% of Agthia revenues, but that the company has increased this figure to 20%.
“ With Agthia’s scale and expertise, Abu Auf has accelerated on the growth journey and remains firmly committed to continued innovation and expansion.”
Ahmed Auf, Chief Executive Officer of Abu Auf Group
Agthia
Company Snapshot
- Founded in 2010, Abu Auf is a specialty food manufacturer and retailer offering premium coffee, nuts, dates and a variety of snacks.
- Agthia is an Abu-Dhabi based food and beverage company established in 2004. Moreover, an Abu-Dhabi government entity own the majority of its shares.
Agthia’s Regional Footprint Agthia’s assets are across the UAE, Saudi Arabia, Kuwait, Oman, Turkey, Jordan and Egypt. In its expansion, it has acquired several companies engaged in the manufacturing, distribution and marketing of various products.
- Al Ain Warer
- BMB Group; a GCC snack company
- Atyab Egypt: Egyptian frozen food company
- Kuwait’s Al Faisal Bakery and Sweets
- Jordan’s Nabil Foods
UAE Expansion into Egyptian Market
The past years have witnessed a notable increase in UAE investments in the food and beverage sector in Egypt. As several UAE companies carrying out acquisitions to strengthen their presence in the Egyptian market.
For instance, in September 2024, UAE-based Hayel Saeed Anam Group (HSA) acquired a majority stake in Egypt’s biscuit company Bisco Misr. This acquisition was part of HSA’s strategy of expansion its presence in the Egyptian market
Additionally, Agthia Group acquired a 75% stake in Ismailia Agricultural and Industrial Investments. This company is known for its brand “Atyab” which specializes in the production of frozen meat and poultry in Egypt. Furthermore, the deal was valued at approximately EGP 3.2 billion.
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