Agthia Group (AGTHIA), which houses food and beverage brands like Al Ain and Yoplait, recently took on healthy snacks maker BMB Group under its wings. This marks the second acquisition for Agthia in the health foods space — and, with BMB’s nine unique brands in the sector, it looks to be a strategic one.
The global health snacks market is estimated at $360b and Dubai-based BMB’s products are an attempt to gain a foothold in that. BMB’s products involve ready-made healthy gourmet meals, protein snacks, gluten-free bread, and baklawa. The company’s also set to see a 20% growth in its EBITDA margins this year. Agthia’s acquisitions have meant a 17.5% quarterly increase in its Q2 2021 net profit and 20% annual increase in its net revenues.
Despite the news, Agthia saw a sudden 6.0% drop in its share price by the time of market close yesterday — guess someone isn’t a fan of healthy eating.
why it matters
The health foods market is uncharted territory for Agthia, whose brands consist of products usually bought in bulk such as mineralized water, flour, and animal feed. The company has made a series of acquisitions recently in more consumer-facing ventures that sell frozen foods, dates, and bakery sweets. As the company aims to become a regional leader in MENA by 2025, BMB is one more piece of a larger consolidate-and-grow puzzle.