Agthia Embarks on Transformational Journey with its Strategy to Become an F&B Leader by 2025

Abu Dhabi, United Arab Emirates [ AETOS Wire ]

Agthia Group PJSC revealed its long-term strategy to become an F&B leader in the Middle East, North Africa and Pakistan (MENAP) region and beyond by 2025. The strategy is built on three strategic pillars (growth, efficiency and capability) and is designed to extend the Group’s market leadership, provide significant value for all stakeholders and continue to drive profitability growth with a consumer-centric approach.

The Abu Dhabi-based organisation is engaged in manufacturing, distribution and marketing of a wide range of F&B products, including popular regional brands such as Al Ain (water), Al Foah (dates), Al Faysal Bakery & Sweets (bakery) and Grand Mills (flour and bakery) among others.

Khalifa Sultan Al Suwaidi, Chairman, Agthia Group, said: “The strategy will unleash the full potential of the exceptional capabilities we have built, create greater opportunities for our people, and act as a catalyst for us to again set new benchmarks in the F&B industry.”

Alan Smith, Chief Executive Officer, Agthia Group, said: “Our strategy stems from an in-depth assessment of the business and a clear vision of where we want to go. We will continue to get leaner, protect our core business and ensure that our progress is agile and deliberately paced.”

Growth

Agthia will deliver on growth by upscaling in priority markets, expanding into value-add categories and driving margin improvement by 2025. This will be made possible by strengthening the core base, including strengthening  the water category, protecting flour and feed categories as well as shifting the portfolio mix towards higher margin categories.

In addition, Agthia has embarked upon a robust inorganic growth strategy that is focussed on acquisition of companies with strong consumer brands that are market leaders in their respective categories.

“The strategy will generate cost and revenue synergies through cross-selling opportunities and enhancing the Group’s regional brand portfolio.” explained Smith.

Efficiency

Agthia is targeting a savings of AED200 million through synergy extraction as well as simplification of its existing and acquired businesses. Along with strategic partnerships for distribution and marketing, the organisation will enhance commercial and working capital excellence, operational optimisation, lean  procurement as well as manufacturing and supply chain management. Non-scalable assets will be divested while suppliers and specifications will be streamlined.

Capability

Agthia will continue to develop its human capital and acquire additional talent with a clear attention to category management expertise, to align its capabilities with the expected demands of a growing organisation.

Their key focus for the next five years includes digitalising performance management systems and implementing change initiatives across the board with a continued emphasis on sustainability and innovation.

The Group will continue to drive efficiencies in its operations, optimise product portfolio, maintain a principled allocation framework and adopting a best-in-class Environment, Social & Governance (ESG) agenda to enhance consumer experience and deliver shareholder returns in line with global standards.