Agthia evaluates business consolidation offer with Al Foah

Agthia evaluates business consolidation offer with Al Foah
Agthia evaluates business consolidation offer with Al Foah

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“Agthia” evaluates business consolidation offer with “Al Foah”, today Monday, November 9, 2020 02:16 am

Source:
  • Abu Dhabi – Rami Samih

Date: 09 November 2020

Alan Smith, CEO of Agthia Group, which is based in Abu Dhabi, said that the company is now in the process of evaluating the non-binding offer it received regarding business consolidation with Al Foah, the world’s largest company for processing and packing dates, with the aim of creating one of the top 10 Companies in the food and beverage sector in the Middle East and North Africa.

Smith added in an interview with the «Economic Statement» that if the offer is approved, this will be aimed at the company’s endeavors to diversify and increase the range of its offered products and enhance its competitiveness to reach new markets, explaining that the new leadership team of the company is actively exploring opportunities for expansion in new brands and markets. This allows us to expand the reach of value-added retail products and distribution across markets.

Thoughtful expansion

Smith clarified that Agthia is continuously looking to expand the spread of its product categories and offerings in the market, explaining that the company is constantly exploring the best ways and means to help it strengthen its business, enhance its existing divisions and departments, and create others that support these trends. He added: “As the Board of Directors and the new leadership team continue this strategic review, the team has already taken bold steps such as strengthening the Consumer Business Division and creating two new marketing departments, in addition to mergers and acquisitions, with the aim of seeking new business opportunities locally and internationally.” .

Smith pointed out that this continuous focus on gradual change in the efficiency and shape of the leadership team reinforces Agthia’s firm commitment to contribute to maintaining its leadership across many basic categories and categories, in addition to protecting the interests of its shareholders.

Optimistic look

In response to a question about expectations for the company’s results in the fourth quarter of 2020, Smith said: “Of course, we have a positive outlook towards the fourth quarter. At the beginning of the year, our plans focused on expanding the spread of our products globally, and so far, these steps have been successful, especially as we focused on Maintaining strong relationships with our partners in the retail sector, in addition to keeping pace with the increasing requirements of e-commerce, as we have looked for greater opportunities to expand our offerings over the Internet.

Retail

The CEO said that the market is witnessing further improvement, as retail channels have been relatively strong over the past few months, while we are witnessing a trend in increasing corporate, hotel, restaurant and hotel channels with the economy gradually opening up after the closure phase due to the pandemic, so we are very optimistic that This positive path will continue to increase with the gradual return to normalcy. He stressed that the company’s resilience is further supported by its strong financial position and available cash, in addition to setting up a plan to reset business fundamentals with a focus on growth in the next phase.

Excise tax

He mentioned that the company signed an agreement to terminate the commercial relationship with “Capri Sun” in December 2020, and the trademark will be returned to its owner as of January 2021, which led to the cancellation of the balance of assets and inventory worth 9.5 million dirhams, indicating that the company will not be excluded at the present time. Any other products out of her portfolio due to excise tax, but she is constantly evaluating her product range.

Regarding the company’s expansion plans in regional or international markets, Smith said: “We constantly aspire to expand into new markets, in addition to our continuous endeavor to increase the categories and classes of our products and our offerings. In addition, we will continue to consider geographic expansion plans, as this is the next step. Natural for us to maintain growth ».

The water sector

Regarding the fierce competition between brands specializing in selling water, the CEO of Agthia said that our Al Ain Water was classified as the most preferred brand by consumers in the UAE, pointing out that Agthia aims to design Products that contribute positively to the local and regional market. Indeed, “Al Ain Water” has maintained innovation and sustainability at the core of the brand. We have provided products such as Zero sodium-free, water fortified with Vitamin D and “Al Ain Botanical Water”. This is what makes Al Ain water is very popular with consumers, and also emphasizes the commitment to meet the needs of consumers in the local market and abroad.

Strong financial position

Agthia Group CEO affirmed that Agthia is committed to preserving our strong financial position and our available cash liquidity, as well as maintaining its market leadership across the main categories, and supporting and protecting shareholder value, stressing that the measures taken by the company will support its success in the future.

Governmental partnerships

Alan Smith mentioned that Agthia is already playing an active role in the food and beverage sector, and the current government-supported shareholding of 51% represents an additional impetus for Agthia’s strategic partnership with local authorities, adding: “We cooperate with the government and work closely. With our partners in working to ensure the continued supply of basic food products to serve the local community in the fullest way.

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