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Agthia increases stake in Egyptian snack group

coffee drinking woman Agthia UAE Egypt Pixabay
I'll drink to that: Agthia Group now owns 70% of the Egyptian company Auf Group, whose products include premium coffee, nuts, healthy snacks and other confectionery items
  • Latest UAE investment in Egypt
  • Holding in Auf now 70%
  • Snacking and health food ‘very exciting’

Agthia Group has raised its stake in the Egyptian snacks company Auf Group to 70 percent, the latest UAE investment in the North African country.

The food and beverages group, which is majority owned by the Abu Dhabi government through the state investor ADQ, acquired a 60 percent stake in Auf Group in 2022

In a filing to the Abu Dhabi exchange in the UAE this week, Agthia Group said its holding in the Egyptian company has been increased by a further 10 percent.

“The high-margin snacking and healthy food vertical is very exciting for us and remains one of our key future core growth categories,” said Alan Smith, chief executive officer of Agthia Group.

Auf Group processes, manufactures, retails and distributes products across Egypt including premium coffee, nuts, healthy snacks and other confectionery items sold under the Abu Auf master brand.

Since the initial acquisition almost two years ago, Auf has increased its retail footprint in Egypt from 190 to 300 stores.

GMG launches Schnax brand

Ahmed Auf, chief executive officer of Auf Group, said: “Our focus remains on maintaining our unique position in the Egyptian snacking market while expanding our reach and footprint.”

Agthia reported a group net profit of AED300 million ($82 million) in 2023, up 10 percent year on year.

The UAE is making a huge investment in Egypt. Earlier this week, ADQ unveiled plans to invest $35 billion to build what it said would be the “largest new city in the country, to promote tourism and drive economic growth.

ADQ will acquire the development rights for Ras El-Hekma, on the north coast of Egypt, for $24 billion, to develop the region as a Mediterranean holiday destination, including a free zone. A further $11 billion of deposits will be converted and used for investment in prime projects across Egypt.

In April last year the fund said it had bought stakes worth almost $2 billion in five listed companies in Egypt. 

The following month ADQ said it would be allocating $10 billion to projects with Egypt and Jordan, including agriculture, pharmaceuticals, minerals, petrochemicals and textiles.

The OECD, which has just published its first economic survey of Egypt, expects growth to slow to 3 percent in the Egyptian financial year 2023-24. It then forecasts a rebound to more than 5 percent in 2025-26.

It also predicted that public debt will fall as a percentage of GDP to 92 percent in this financial year, and drop to 87 percent and then 81 percent over the next two years.

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