Q2 2026 Agthia Group PJSC Earnings Call

August 6, 2026

Operator: Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Agthia H1 and Q2 2026 earnings conference call on 6 August 2026. The format of the call will be a presentation by the management team, followed by a question and answer session. Without further ado, I would like to pass the line to Tatiana Vlasova, Head of Investor Relations. Please go ahead, ma'am.

Operator: Ladies and gentlemen, thank you for standing by, and I would like to welcome you to Agthia H1 and Q2 2026 earnings conference call on 6 August 2026. The format of the call will be a presentation by the management team, followed by a question-and-answer session. Without further ado, I would like to pass the line to Tatiana Vlasova, Head of Investor Relations. Please go ahead, ma'am.

Speaker #1: Relations. Please go ahead,

Tatiana Vlasova: Hello and welcome, everyone. Thank you Agthia team for hosting today's call, and thank you all for joining us to review Agthia Group Q2 and H1 2026 results. On today's call, we are joined by Agthia Group CFO, Jeroen Wientjies and Abrahim Al Dowouk, who recently joined Agthia Investor Relations team as Investor Relations Manager. Jeroen will provide an update on Agthia's strategy progress and review the group financial and operational performance for the quarter and H1 of the year. Following the presentation, we will open the floor for the Q&A session. For your reference, investor presentation will be available on the Investor Relations section of our website after the earnings call. Please note that today's call we may discuss some forward-looking statements, and these forward-looking statements should be considered together with the disclaimer included in the presentation. With that, let me hand over to Jeroen.

Tatiana Vlasova: Hello and welcome, everyone. Thank you Agthia team for hosting today's call, and thank you all for joining us to review Agthia Group Q2 and H1 2026 results. On today's call, we are joined by Agthia Group CFO, Jeroen Nijs and Abraheem Eldahouk, who recently joined Agthia Investor Relations team as Investor Relations Manager. Jeroen will provide an update on Agthia's strategy progress and review the group financial and operational performance for the quarter and H1 of the year. Following the presentation, we will open the floor for the Q&A session. For your reference, investor presentation will be available on the Investor Relations section of our website after the earnings call. Please note that today's call we may discuss some forward-looking statements, and these forward-looking statements should be considered together with the disclaimer included in the presentation. With that, let me hand over to Jeroen.

Speaker #2: hosting today's call, and thank you all for Thank you to all your team for joining us to review Agtia Group Q2 and H1 2026 results.

Speaker #2: by Agtia Group CFO, Jeroen Nyst, and Al-Abrahim Al-Daouq, who recently joined Agtia Investor Relations team as Investor Relations Manager. Jeroen will provide an update on Agtia's strategy progress and review the group financial and operational performance for the quarter.

Speaker #2: And first half of the year, following the presentation, we will open the floor for the Q&A session. For your reference, the investor presentation will be available on the investor relations section of our website after the earnings call.

Speaker #2: Please note that today's call we may discuss some forward-looking statements, and these forward-looking statements should be considered together with the disclaimer included in the presentation.

Speaker #2: With that, let me hand over to Jeroen.

Speaker #3: Thank you, Tatiana. Good afternoon, everyone, and thank you for joining us today. Before turning to the financial performance, I would like to provide an update first on the operating environment.

Jeroen Wientjies: Thank you, Tatiana. Good afternoon, everyone, and thank you for joining us today. Before turning to the financial performance, I would like to provide an update first on the operating environment. As the situation in the region evolves, we continue to closely monitor the environment and maintain, of course, a high level of preparedness across our operations, logistics networks, and supply chains. While regional logistics constraints persisted during the parts of Q2, our diversified manufacturing footprints, our multi-country operating model, and as well multi-sourcing capabilities, help us enable to continue serving customers without interruption within the Middle East region. Our teams remain focused on continuity, supplier reliability, and customer service throughout the whole period. We also continue to actively manage commodity and freight related volatility, and this through disciplined procurement and as well productivity initiatives.

Jeroen Nijs: Thank you, Tatiana. Good afternoon, everyone, and thank you for joining us today. Before turning to the financial performance, I would like to provide an update first on the operating environment. As the situation in the region evolves, we continue to closely monitor the environment and maintain, of course, a high level of preparedness across our operations, logistics networks, and supply chains. While regional logistics constraints persisted during the parts of Q2, our diversified manufacturing footprints, our multi-country operating model, and as well multi-sourcing capabilities, help us enable to continue serving customers without interruption within the Middle East region. Our teams remain focused on continuity, supplier reliability, and customer service throughout the whole period. We also continue to actively manage commodity and freight related volatility, and this through disciplined procurement and as well productivity initiatives.

Speaker #3: As the situation in the region evolves, we continue to closely monitor the environment and maintain a high level of preparedness across our operations logistics networks and supply chains.

Speaker #3: While regional logistics constraints persisted during the parts of second quarter, our diversified manufacturing footprint, our multi-country operating model, and as well multi-sourcing capabilities helped us enable to continue serving customers without interruption within the Middle East region.

Speaker #3: Our teams remained focused on continuity, supplier reliability, and customer service throughout the whole period. We also continue to actively manage commodity and freight-related volatility and this through disciplined procurement and as well productivity initiatives.

Jeroen Wientjies: Overall, our business remains resilient and well-positioned to navigate short-term external challenges while maintaining focus on our long-term strategic priorities. As we continue our journey to becoming a leading regional food and beverage company, H1 2026 demonstrates the strength of our diversified portfolio and the progress we are making across our strategic priorities. Our focus remains unchanged. First, delivering sustainable growth. Second, driving efficiency and productivity across our operations. Third, building the capabilities required to support long-term value creation. While the external environment remains volatile, our strategic transformation continues to gain traction and is strengthening the quality and resilience of our earnings over time. Let me now walk you through the progress we have made across these three pillars during H1. Starting with growth.

Jeroen Nijs: Overall, our business remains resilient and well-positioned to navigate short-term external challenges while maintaining focus on our long-term strategic priorities. As we continue our journey to becoming a leading regional food and beverage company, H1 2026 demonstrates the strength of our diversified portfolio and the progress we are making across our strategic priorities. Our focus remains unchanged. First, delivering sustainable growth. Second, driving efficiency and productivity across our operations. Third, building the capabilities required to support long-term value creation. While the external environment remains volatile, our strategic transformation continues to gain traction and is strengthening the quality and resilience of our earnings over time. Let me now walk you through the progress we have made across these three pillars during H1. Starting with growth.

Speaker #3: Overall, our business remains resilient and well-positioned to navigate short-term external challenges while maintaining focus on our long-term strategic priorities. And as we continue our journey to becoming a leading regional food and beverage company, the first half of 2026 demonstrates the strength of our diversified portfolio and the progress we are making across our strategic priorities.

Speaker #3: Our focus remains unchanged: first, delivering sustainable growth; second, driving efficiency and productivity across our operations; and third, building the capabilities required to support long-term value creation.

Speaker #3: Now, while the external environment remains volatile, our strategic transformation continues to gain traction and is strengthening the quality and resilience of our earnings over time.

Speaker #3: Let me now walk you through the progress we have made across these three pillars during the first half of the year. Starting with growth.

Jeroen Wientjies: For H1, reported revenue increased 7.4% year-on-year, supported by strong performances in the Water and Foods, the Agribusiness, and the Protein and Frozen Business. While snacking was impacted by the regional conflict. Excluding one-off food security activity recorded in the Agribusiness and Water and Food segments, the underlying revenue was broadly stable, reflecting the mixed market dynamics across our portfolio and the impact from the regional conflict. Innovation remains a key growth lever. During H1, innovation generated nearly AED 110 million in revenue, representing 4.6% of underlying sales and growing about 30% year-on-year. Digital channels also continue to expand, generating AED 176 million in revenue and accounting for 7.2% of our underlying group sales. Moving to efficiency, the second pillar.

Jeroen Nijs: For H1, reported revenue increased 7.4% year-on-year, supported by strong performances in the Water and Foods, the Agribusiness, and the Protein and Frozen Business. While snacking was impacted by the regional conflict. Excluding one-off food security activity recorded in the Agribusiness and Water and Food segments, the underlying revenue was broadly stable, reflecting the mixed market dynamics across our portfolio and the impact from the regional conflict. Innovation remains a key growth lever. During H1, innovation generated nearly AED 110 million in revenue, representing 4.6% of underlying sales and growing about 30% year-on-year. Digital channels also continue to expand, generating AED 176 million in revenue and accounting for 7.2% of our underlying group sales. Moving to efficiency, the second pillar.

Speaker #3: For H1, reported revenue increased 7.4% year-on-year, supported by strong performances in the water and foods, the agribusiness, and the protein and frozen business, while snacking was impacted by the regional conflict.

Speaker #3: Excluding one of food security activity recorded in the agribusiness and water and food segments, the underlying revenue was broadly stable reflecting the mixed market dynamics across our portfolio and the impact from the regional conflict.

Speaker #3: Innovation. Remains a key growth lever. During the first half, innovation generated nearly 110 million dirham in revenue, representing 4.6% of underlying sales and growing about 30% year-on-year.

Speaker #3: Digital channels also continue to expand. Generating 176 million dirham in revenue and accounting for 7.3% of our underlying group sales. Moving to efficiency, the second pillar.

Speaker #3: We continue to leveraging our Egyptian platform, so generating about 52 million dirham of export revenues while strengthening our export-oriented capabilities. And in addition, we continue to progress with our group-wide head office optimization program into streamlining the support functions and as well improving overhead efficiencies.

Jeroen Wientjies: We continue leveraging our Egyptian platform, generating about AED 52 million of export revenues while strengthening our export-oriented capabilities. In addition, we continue to progress with our group-wide head office optimization program, aimed at streamlining the support functions and as well improving overhead efficiencies. Finally, on capabilities, we accelerated our digital roadmap during the quarter with the launch of a group-wide transformation program, which is aimed at building a more integrated and scalable operating model. Also implementing shared service center capabilities over the next years, and as well, increasing the use of data and AI across the whole business. We also successfully launched Fuell. It's a new brand, it's UAE's first energy drink sweetened with dates. This was launched exclusively on noon Minutes through our newly established e-commerce team, demonstrating our ability to bring innovation to the market through digital channels as well.

Jeroen Nijs: We continue leveraging our Egyptian platform, generating about AED 52 million of export revenues while strengthening our export-oriented capabilities. In addition, we continue to progress with our group-wide head office optimization program, aimed at streamlining the support functions and as well improving overhead efficiencies. Finally, on capabilities, we accelerated our digital roadmap during the quarter with the launch of a group-wide transformation program, which is aimed at building a more integrated and scalable operating model. Also implementing shared service center capabilities over the next years, and as well, increasing the use of data and AI across the whole business. We also successfully launched Fuell. It's a new brand, it's UAE's first energy drink sweetened with dates. This was launched exclusively on noon Minutes through our newly established e-commerce team, demonstrating our ability to bring innovation to the market through digital channels as well.

Speaker #3: Finally, on capabilities, we accelerated our digital roadmap during the quarter with the launch of group-wide transformation program, which is aimed at building a more integrated and scalable operating model also implementing shared service center capabilities over the next years.

Speaker #3: And as well increasing the use of data and AI across the whole business. We also successfully launched fuel. It's a new brand where it's UAE's first energy drinks with sweetened with dates.

Speaker #3: And this was launched exclusively on noon minutes through our newly established e-commerce team. Demonstrating our ability to bring innovation to the market through digital channels as well.

Speaker #3: We also continued to make meaningful progress across our ESG agenda. Here we generated 5 million in sustainable related savings while reducing electricity emissions and water intensity ratios across the group.

Jeroen Wientjies: We also continued to make meaningful progress across our ESG agenda. Here we generated AED 5 million in sustainable related savings while reducing electricity, emissions, and water intensity ratios across the group. Overall, we delivered good progress across all of these three strategic pillars. We continue to strengthen the foundations for the future. On slide seven, you can see an overview of our innovations. We generated nearly AED 110 million in revenues, as I explained a moment ago. Innovation clearly continues to be an important component of our growth strategy. Across snacking, Abu Dhabi expanded its convenience and indulgence portfolio through new additions to the snacking range, while Al Foah further expanded the Zadina portfolio.

Jeroen Nijs: We also continued to make meaningful progress across our ESG agenda. Here we generated AED 5 million in sustainable related savings while reducing electricity, emissions, and water intensity ratios across the group. Overall, we delivered good progress across all of these three strategic pillars. We continue to strengthen the foundations for the future. On slide seven, you can see an overview of our innovations. We generated nearly AED 110 million in revenues, as I explained a moment ago. Innovation clearly continues to be an important component of our growth strategy. Across snacking, Abu Dhabi expanded its convenience and indulgence portfolio through new additions to the snacking range, while Al Foah further expanded the Zadina portfolio.

Speaker #3: Overall, we delivered good progress across all of these three strategic pillars, and we continue to strengthen the foundations for the future. On slide seven, you can see an overview of our innovations.

Speaker #3: We generated nearly 110 million in revenues as I explained a moment ago. Innovation clearly continues to be an important component of our growth strategy.

Speaker #3: Cross snacking, above all, expanded its convenience and indulgence portfolio through new additions to the snacking range. While our four further expanded the Zedina portfolio.

Speaker #3: The water and food business entered into a new category like I just explained with the launch of a new brand fuel which is again UAE's first energy drink sweetened with dates.

Jeroen Wientjies: The Water and Food business entered into a new category, like I just explained, with the launch of a new brand, Fuell, which is again, UAE's first energy drink sweetened with dates, which helps us as well strengthen our better-for-you innovation agenda, and creating a unique proposition within the functional beverages category. Al Ain Food also introduced new ranges of sauces, along with some additions to their frozen foods portfolio. On the right, Protein and Frozen. In this business, we continued broadening our offering with new protein products, both across retail and food service channels. On the bottom right, finally, the Agri Business. Here we continue to broaden our value proposition for customers, introducing tailored flour products, and a comprehensive cleaning and disinfection range for animal facilities to support the evolving needs of UAE farmers. We're also moving into services to those customers.

Jeroen Nijs: The Water and Food business entered into a new category, like I just explained, with the launch of a new brand, Fuell, which is again, UAE's first energy drink sweetened with dates, which helps us as well strengthen our better-for-you innovation agenda, and creating a unique proposition within the functional beverages category. Al Ain Food also introduced new ranges of sauces, along with some additions to their frozen foods portfolio. On the right, Protein and Frozen. In this business, we continued broadening our offering with new protein products, both across retail and food service channels. On the bottom right, finally, the Agri Business. Here we continue to broaden our value proposition for customers, introducing tailored flour products, and a comprehensive cleaning and disinfection range for animal facilities to support the evolving needs of UAE farmers. We're also moving into services to those customers.

Speaker #3: Which helps us as well strengthen our better for you innovation agenda. And creating a unique proposition within the functional beverages category. I'll aim foods also introduced new ranges of sauces along with some additions to their frozen food portfolio.

Speaker #3: On the right, protein and frozen. In this business, we continued broadening our offering with new protein products both across retail and food service channels.

Speaker #3: And on the bottom right, finally, the agribusiness. Here we continue to broaden our value proposition for customers introducing tailored flour products and a comprehensive cleaning and disinfection range for animal facilities to support the evolving needs of UAE farmers.

Speaker #3: So we're also moving into services to those customers. Innovation overall is helping us strengthen our brands it unlocks new consumption occasions and creates additional sources of profitable growth across our portfolio.

Jeroen Wientjies: Innovation overall is helping us strengthen our brands. It unlocks new consumption occasions and creates additional sources of profitable growth across our portfolio. Now, turning to our Q2 financial performance. Agthia Group revenue reached AED 1.28 billion, growing nearly 12% year on year. This performance was supported by strong growth in Water and Food, Protein and Frozen, and as well the Agri Business. As shown on this slide here, Water and Food also benefited from AED 142 million of food security sales during the quarter. That's the shaded area. Excluding this activity, the underlying group performance was relatively stable, -0.6% versus prior year. Most importantly, our profitability improved significantly. Gross profit increased 26.4% year on year, while gross margin expanded by 341 basis points to 29.7%.

Jeroen Nijs: Innovation overall is helping us strengthen our brands. It unlocks new consumption occasions and creates additional sources of profitable growth across our portfolio. Now, turning to our Q2 financial performance. Agthia Group revenue reached AED 1.28 billion, growing nearly 12% year on year. This performance was supported by strong growth in Water and Food, Protein and Frozen, and as well the Agri Business. As shown on this slide here, Water and Food also benefited from AED 142 million of food security sales during the quarter. That's the shaded area. Excluding this activity, the underlying group performance was relatively stable, -0.6% versus prior year. Most importantly, our profitability improved significantly. Gross profit increased 26.4% year on year, while gross margin expanded by 341 basis points to 29.7%.

Speaker #3: Now turning to our second quarter financial performance. Aghtia's group revenue reached 1.28 billion dirham growing nearly 12% year-on-year. This performance was supported by strong growth in water and food.

Speaker #3: Protein and frozen, as well as the agribusiness segment. As shown on this slide here, Water and Food also benefited from AED 142 million of food security sales during the quarter.

Speaker #3: That's the shaded area. Excluding this activity, the underlying group performance was relatively stable. Minus 0.6% versus prior year. And most importantly, our profitability improved significantly.

Speaker #3: Gross profit increased 26.4% year-on-year while gross margin expanded by 341 basic points to 29.7%. This was mainly driven by the continued improvement in snacking profitability.

Jeroen Wientjies: This was mainly driven by the continuous improvement in snacking profitability following the Al Foah reset, which was then as well partially offset by margin pressures across other segments, resulting from intensified competition, input cost pressures, and as well mix effects. Moving to EBITDA and net profit for Q2. Reported EBITDA increased 172% year on year to AED 117 million, with EBITDA margin expanding 542 basis points to 9.2%. This performance reflects a combination of revenue growth, improved profitability in snacking and Water and Food, and the absence of certain one-off items that impacted the prior year periods. Underlying EBITDA increased by 4.5%, highlighting the resilience of our earnings, and as well growing the impact from the transformation initiatives that we've started. On the right, group reported net profit reached AED 25 million, compared with a loss of AED 37 million in Q2 last year.

Jeroen Nijs: This was mainly driven by the continuous improvement in snacking profitability following the Al Foah reset, which was then as well partially offset by margin pressures across other segments, resulting from intensified competition, input cost pressures, and as well mix effects. Moving to EBITDA and net profit for Q2. Reported EBITDA increased 172% year on year to AED 117 million, with EBITDA margin expanding 542 basis points to 9.2%. This performance reflects a combination of revenue growth, improved profitability in snacking and Water and Food, and the absence of certain one-off items that impacted the prior year periods. Underlying EBITDA increased by 4.5%, highlighting the resilience of our earnings, and as well growing the impact from the transformation initiatives that we've started. On the right, group reported net profit reached AED 25 million, compared with a loss of AED 37 million in Q2 last year.

Speaker #3: Following the four resets. Which was then as well partially offset by margin pressures across other segments resulting from intensified competition, input cost pressures and as well mixed effects.

Speaker #3: Moving to EBITDA and net profit for Q2. Reported EBITDA increased 172% year-on-year to 117 million ADD. With EBITDA margin expanding 542 basis points to 9.2%.

Speaker #3: This performance reflects a combination of revenue growth, improved profitability in snacking and water and foods, and the absence of certain one-off items that impacted the prior year periods.

Speaker #3: Underlying EBITDA increased by 4.5% highlighting the resilience of our earnings and as well growing the impact from the transformation initiatives that we've started. On the right, group reported net profit reached 25 million, compared with a loss of 37 million in Q2 last year.

Jeroen Wientjies: Beyond EBITDA growth, earnings also benefit from lower finance costs, although this was partially offset by higher tax and tax expenses, of course, due to the higher EBITDA. Overall, these results show clear progress in our transformation agenda and provide further evidence as well that many of the actions implemented are delivering tangible results. Turning to working capital. We continue to improve discipline across working capital management during the quarter. Net working capital as a percentage of sales declined from 13.7% to 1.4%, the lowest level in many years, which was supported by improved receivables management, lower inventory levels, and as well higher trade payables. Across all three key elements of working capital. Inventory levels, those were partially impacted by extended shipment times across certain logistics routes. Nevertheless, our operations continue to perform as planned, and we have no interruption to customer service in the region, as I mentioned.

Jeroen Nijs: Beyond EBITDA growth, earnings also benefit from lower finance costs, although this was partially offset by higher tax and tax expenses, of course, due to the higher EBITDA. Overall, these results show clear progress in our transformation agenda and provide further evidence as well that many of the actions implemented are delivering tangible results. Turning to working capital. We continue to improve discipline across working capital management during the quarter. Net working capital as a percentage of sales declined from 13.7% to 1.4%, the lowest level in many years, which was supported by improved receivables management, lower inventory levels, and as well higher trade payables. Across all three key elements of working capital. Inventory levels, those were partially impacted by extended shipment times across certain logistics routes. Nevertheless, our operations continue to perform as planned, and we have no interruption to customer service in the region, as I mentioned.

Speaker #3: Beyond EBITDA growth, earnings also benefit from lower finance costs, although this was partially offset by higher tax and tax expenses, of course, due to the higher EBITDA.

Speaker #3: Overall, these results show clear progress in our transformation agenda. And provide further evidence as well that many of the actions implemented are delivering tangible results.

Speaker #3: Turning to working capital. We continue to improve discipline across working capital management during the quarter. Net working capital as a percentage of sales declined from 13.7 to 1.4%.

Speaker #3: The lowest level in many years. Which was supported by improved receivables management, lower inventory levels and as well higher trade payables. So across all three key elements of working capital.

Speaker #3: Inventory levels. Those were partially impacted by extended shipment times across certain logistic routes. Nevertheless, our operations continue to perform as planned and we had no interruption to customer service in the region as I mentioned.

Speaker #3: When it comes to receivables, we have a stronger collection process, which continues to lower trade receivable levels and has also supported our cash generation.

Jeroen Wientjies: When it comes to receivables, here we have got a stronger collection process, which continued to lower trade receivable levels and as well supported our cash generation. When it comes to payables, you can see an increase, significant increase actually, which reflects the timing of government support payments to farmers, as well as shipment phasing within the agribusiness. Both of which are expected to normalize during the quarter. As I mentioned, there's a bit of phasing in there as well. As a result, our cash conversion cycle improved significantly from 56 to 29 days. This reflects, of course, the progress we are making in managing our working capital more efficiently. Looking ahead, further improving cash conversion and maintaining strong working capital discipline remains a key priority for the group. On free cash flow, here, we improved significantly.

Jeroen Nijs: When it comes to receivables, here we have got a stronger collection process, which continued to lower trade receivable levels and as well supported our cash generation. When it comes to payables, you can see an increase, significant increase actually, which reflects the timing of government support payments to farmers, as well as shipment phasing within the agribusiness. Both of which are expected to normalize during the quarter. As I mentioned, there's a bit of phasing in there as well. As a result, our cash conversion cycle improved significantly from 56 to 29 days. This reflects, of course, the progress we are making in managing our working capital more efficiently. Looking ahead, further improving cash conversion and maintaining strong working capital discipline remains a key priority for the group. On free cash flow, here, we improved significantly.

Speaker #3: And when it comes to payables, you can see an increase significant increase actually which reflects the timing of government support payments to farmers. As well as shipment phasing within the agribusiness.

Speaker #3: Both of which are expecting to normalize during the quarter so as I mentioned there's a bit of phasing in there as well. As a result, our cash conversion cycle improved significantly from 56 to 29 days.

Speaker #3: And this reflects of course the progress we are making in managing our working capital more efficiently. Looking ahead, further improving cash conversion and maintaining strong working capital discipline remains a key priority for the group.

Speaker #3: On free cash flow, here we improved significantly. So from a loss, let's say a negative cash flow of 139 million last year to 521 million during the first half this year.

Jeroen Wientjies: From a loss, let's say a negative cash flow of AED -139 million last year to AED 521 million during the H1 this year, which shows you then an improvement of AED 660 million. The largest driver here, as you can see a little bit of the middle of the chart, was the absence of the significant working capital financing impact, which we experienced during comparable period last year. We've explained this already extensively in the past calls, and that is for a value of AED 413 million. In addition, the higher EBITDA, also the positive working capital movements and lower capital expenditure all contributed to a strong cash flow performance. Cash generation remains a key priority, we continue to concentrate on converting earnings into sustainable free cash flow through disciplined execution and capital allocation. Turning to the balance sheet, our leverage profile improved meaningfully during the period.

Jeroen Nijs: From a loss, let's say a negative cash flow of AED -139 million last year to AED 521 million during the H1 this year, which shows you then an improvement of AED 660 million. The largest driver here, as you can see a little bit of the middle of the chart, was the absence of the significant working capital financing impact, which we experienced during comparable period last year. We've explained this already extensively in the past calls, and that is for a value of AED 413 million. In addition, the higher EBITDA, also the positive working capital movements and lower capital expenditure all contributed to a strong cash flow performance. Cash generation remains a key priority, we continue to concentrate on converting earnings into sustainable free cash flow through disciplined execution and capital allocation. Turning to the balance sheet, our leverage profile improved meaningfully during the period.

Speaker #3: Which shows you then an improvement of 660 million. The largest driver here as you can see a little bit of the middle of the chart was the absence of the significant working capital financing impact.

Speaker #3: Which we experienced during comparable period last year. We've explained this already extensively in the past calls. And that is for a value of 413 million.

Speaker #3: In addition, the higher EBITDA also the positive working capital movements and lower capital expenditure all contributed to a strong cash flow performance. Cash generation remains a key priority and we continue to concentrate on converting earnings into sustainable free cash flow through disciplined execution and capital allocation.

Speaker #3: Turning to the balance sheet, our leverage profile improved meaningfully during the period. Net debt-to-EBITDA leverage improved to 1.8 times versus 2.9 times at the end of 2025.

Jeroen Wientjies: Net debt to EBITDA leverage improved to 1.8x versus 2.9x at the end of 2025. At the same time, our borrowing capacity expanded to probably AED 1.2 billion, while interest coverage strengthened to 7.7x. Our balance sheet remains strong and flexible, enabling us to support strategic growth investments while maintaining attractive shareholder returns. We've been highlighting underlying performance already in the last few earnings calls, it's great to see that these really come to life now. This financial flexibility remains an important competitive advantage as we look ahead. Moving to dividends. Our board of directors have recommended an interim dividend of AED 0.11792 per share. Compared with the H1 dividend last year, this represents an increase of 14.4%.

Jeroen Nijs: Net debt to EBITDA leverage improved to 1.8x versus 2.9x at the end of 2025. At the same time, our borrowing capacity expanded to probably AED 1.2 billion, while interest coverage strengthened to 7.7x. Our balance sheet remains strong and flexible, enabling us to support strategic growth investments while maintaining attractive shareholder returns. We've been highlighting underlying performance already in the last few earnings calls, it's great to see that these really come to life now. This financial flexibility remains an important competitive advantage as we look ahead. Moving to dividends. Our board of directors have recommended an interim dividend of AED 0.11792 per share. Compared with the H1 dividend last year, this represents an increase of 14.4%.

Speaker #3: At the same time, our borrowing capacity expanded to approximately 1.2 billion while interest coverage strengthened to 7.7 times. Our balance sheet remains strong and flexible enabling us to support strategic growth investments while maintaining attractive shareholder returns.

Speaker #3: We've all we've been highlighting underlying performance already in the last few earnings calls. And it's great to see that these really come to life now.

Speaker #3: And this financial flexibility remains an important competitive advantage as we look ahead. Moving to dividends. Our board of directors have recommended an interim dividend of 11.792 fields per share.

Speaker #3: Compared with the first half dividend last year. This represents an increase of 14.4%. The recommendation here reflects confidence of the board in both the resilience of the business and as well the progress we are making in strengthening financial performance and cash generation.

Jeroen Wientjies: The recommendation here reflects confidence of the board in both the resilience of the business and as well the progress we are making in strengthening financial performance and cash generation. Maintaining a disciplined and attractive shareholder return, that remains a key component of our value creation strategy at Agthia. Before moving into the individual business segments, let's take a step back and highlight one of Agthia's key strengths, which is the diversification of our segments and our geographies across our portfolio. As shown on this slide, our revenue is now well-balanced across four business segments, with no single segment accounting for more than 30% of the underlying group sales. This reflects the strategic transformation we have undertaken over the last several years, to build a more diversified food and beverage platform. The same we can see in terms of the geographically diversification.

Jeroen Nijs: The recommendation here reflects confidence of the board in both the resilience of the business and as well the progress we are making in strengthening financial performance and cash generation. Maintaining a disciplined and attractive shareholder return, that remains a key component of our value creation strategy at Agthia. Before moving into the individual business segments, let's take a step back and highlight one of Agthia's key strengths, which is the diversification of our segments and our geographies across our portfolio. As shown on this slide, our revenue is now well-balanced across four business segments, with no single segment accounting for more than 30% of the underlying group sales. This reflects the strategic transformation we have undertaken over the last several years, to build a more diversified food and beverage platform. The same we can see in terms of the geographically diversification.

Speaker #3: Maintaining a disciplined and attractive shareholder return that remains a key component of our value creation strategy at Aghtia. Before moving into the individual business segments, let's take a step back and highlight one of Aghtia's key strengths which is the diversification of our segments and our geographies across our portfolio.

Speaker #3: As shown on this slide, our revenue is now well balanced across four business segments. With no single segment accounting for more than 30% of the underlying group sales.

Speaker #3: And this reflects the strategic transformation we have undertaken over the last several years. To build a more diversified food and beverage platform. The same we can see in terms of the geographically diversification.

Jeroen Wientjies: Now you can see that the UAE remains our largest market, but a significant share of our revenue is generated across the GCC and wider Arabic markets and international markets. This broad footprint provides access to multiple growth opportunities while reducing dependence on any single geography or segment. Importantly, this diversified portfolio allows us to balance different market cycles and as well consumer dynamics across the businesses. During the H1, strong performance in the water and food, as well as the agribusiness helped offset the challenges experienced in the snacking portfolio. That is a good demonstration of the resilience of our operating model and the diversification that we have across the portfolio. Now as we continue to execute our strategy, we remain focused on building leading positions in large scalable categories and geographies, while generating synergies across the group to drive sustainable growth and shareholder value creation.

Jeroen Nijs: Now you can see that the UAE remains our largest market, but a significant share of our revenue is generated across the GCC and wider Arabic markets and international markets. This broad footprint provides access to multiple growth opportunities while reducing dependence on any single geography or segment. Importantly, this diversified portfolio allows us to balance different market cycles and as well consumer dynamics across the businesses. During the H1, strong performance in the water and food, as well as the agribusiness helped offset the challenges experienced in the snacking portfolio. That is a good demonstration of the resilience of our operating model and the diversification that we have across the portfolio. Now as we continue to execute our strategy, we remain focused on building leading positions in large scalable categories and geographies, while generating synergies across the group to drive sustainable growth and shareholder value creation.

Speaker #3: Now you can see that the UAE remains our largest market. But a significant share of our revenue is generated across the GCC and wider Arabic markets and international markets.

Speaker #3: This broad footprint provides access to multiple growth opportunities while reducing dependence on any single geography or segment. Importantly, this diversified portfolio allows us to balance different market cycles and as well consumer dynamics across the businesses.

Speaker #3: And during the first half, strong performance in the water and food as well as the agribusiness help offset the challenges experienced in the snacking portfolio.

Speaker #3: I mean that is a good demonstration of the resilience of our operating model and the diversification that we have across the portfolio. Now as we continue to execute our strategy we remain focused on building leading positions in large scalable categories and geographies while generating synergies across the group to drive sustainable growth and shareholder value creation.

Speaker #3: Now looking at the individual business segments, let's start with the water and food business on slide 17. In Q2, revenue increased 38.9% year on year.

Jeroen Wientjies: Now looking at the individual business segments. Let's start with the water and food business on slide 17. In Q2, revenue increased 38.9% year on year, supported of course by the AED 142 million of food security sales I referred to in the start. Excluding this activity, the segment revenue declined 6%, reflecting softer category demand and logistics related disruption in some of the international markets. Nevertheless, Al Ain continued strengthening its leadership position in the UAE market and gained 2 percentage points of additional market share year to date, May 2026. Our home and office services grew 17.5%, which is supported by, of course, the successful integration of our Riviera business. EBITDA increased 280% year on year, benefiting from strong revenue growth, and as well the absence of legacy receivable provisions, which we recorded in Q2 last year.

Jeroen Nijs: Now looking at the individual business segments. Let's start with the water and food business on slide 17. In Q2, revenue increased 38.9% year on year, supported of course by the AED 142 million of food security sales I referred to in the start. Excluding this activity, the segment revenue declined 6%, reflecting softer category demand and logistics related disruption in some of the international markets. Nevertheless, Al Ain continued strengthening its leadership position in the UAE market and gained 2 percentage points of additional market share year to date, May 2026. Our home and office services grew 17.5%, which is supported by, of course, the successful integration of our Riviera business. EBITDA increased 280% year on year, benefiting from strong revenue growth, and as well the absence of legacy receivable provisions, which we recorded in Q2 last year.

Speaker #3: Supported of course by the 142 million of food security sales I've referred to in the start. Excluding this activity, the segment revenue declined 6% reflecting softer category demand and logistics-related disruption in some of the international markets.

Speaker #3: Nevertheless, our aim continued strengthening its leadership position in the UAE market and gained 2 percentage point of additional market share year to date May 2026.

Speaker #3: Our home and office services grew 17.5% which is supported by of course the successful integration of our Riviera business. And EBITDA increased 280% year on year.

Speaker #3: Benefiting from strong revenue growth and as well the absence of legacy receivable provisions which we recorded in Q2 last year. While the underlying profitability faced pressure from the international water operations and freight cost, the fundamentals of the business is very strong.

Jeroen Wientjies: While the underlying profitability faced pressure from the international water operations and trade costs, the fundamentals of the business is very strong. Secondly, in our agri business, our revenue grew 11% year on year, where the feed sales delivered particularly strong growth, while our flower sales faced some softer demands from certain food service channels. EBITDA increased modestly by 2.4%, although the margin contracted due to competitive intensity and higher distribution costs. Despite these pressures, the business continues to perform well and maintains very strong market positions. Our focus remains here in protecting the market share while managing costs carefully and building long-term customer relationships. Turning to snacking on slide 19. Revenue declines 25.9% year on year, those were primarily driven by three reasons. First, as previously discussed, we decided last year to reduce the sourcing of international dates.

Jeroen Nijs: While the underlying profitability faced pressure from the international water operations and trade costs, the fundamentals of the business is very strong. Secondly, in our agri business, our revenue grew 11% year on year, where the feed sales delivered particularly strong growth, while our flower sales faced some softer demands from certain food service channels. EBITDA increased modestly by 2.4%, although the margin contracted due to competitive intensity and higher distribution costs. Despite these pressures, the business continues to perform well and maintains very strong market positions. Our focus remains here in protecting the market share while managing costs carefully and building long-term customer relationships. Turning to snacking on slide 19. Revenue declines 25.9% year on year, those were primarily driven by three reasons. First, as previously discussed, we decided last year to reduce the sourcing of international dates.

Speaker #3: Secondly, in our agribusiness, our revenue grew 11% year-on-year, with feed sales delivering particularly strong growth, while our flour sales faced some softer demand from certain food service channels.

Speaker #3: EBITDA increased modestly by 2.4%. Although the margin contracted due to competitive intensity and higher distribution costs. Despite these pressures, the business continues to perform well and maintains very strong market positions.

Speaker #3: Our focus remains here in protecting the market share while managing costs carefully and building long-term customer relationships. Turning to snacking on slide 19, revenue declines 25.9% year on year.

Speaker #3: And those who are primarily driven by three reasons. Due to three reasons. First, as previously discussed, we decided last year to reduce the sourcing of international dates.

Jeroen Wientjies: As a result, here we procured lower volumes during the 2025 crop season, which is now reflected in our revenue. Secondly, unlike last year, we did not have those sales related to the depletion of the old crop inventory, which we were actually selling at that time, at a loss. Finally, the disruptions to the logistics routes across the region affected export sales on both Al Foah business and as well BMB during Q2. At the same time, Al Foah continued to perform very strong, delivering nearly 24% growth and expanding its retail footprint to 438 permanent stores. They also currently operate almost 40 seasonal stores, mainly in the northern coast. Most encouragingly, profitability improved significantly. EBITDA losses narrowed substantially compared to last year, largely driven by the progress of the Al Foah turnaround and some improvements in the portfolio quality.

Jeroen Nijs: As a result, here we procured lower volumes during the 2025 crop season, which is now reflected in our revenue. Secondly, unlike last year, we did not have those sales related to the depletion of the old crop inventory, which we were actually selling at that time, at a loss. Finally, the disruptions to the logistics routes across the region affected export sales on both Al Foah business and as well BMB during Q2. At the same time, Al Foah continued to perform very strong, delivering nearly 24% growth and expanding its retail footprint to 438 permanent stores. They also currently operate almost 40 seasonal stores, mainly in the northern coast. Most encouragingly, profitability improved significantly. EBITDA losses narrowed substantially compared to last year, largely driven by the progress of the Al Foah turnaround and some improvements in the portfolio quality.

Speaker #3: As a result, here we procured lower volumes during the 2025 crop season which is now reflected in our revenue. Secondly, unlike last year, we did have we did not have those sales related to the depletion of the old crop inventory.

Speaker #3: Which we were actually selling at that time at losses. And finally, the disruptions to the logistics routes across the region affected export sales on both our four business and as well B and B during Q2.

Speaker #3: At the same time, above continue to perform very strong. Delivering nearly 24% growth and expanding its retail footprints to 438 permanent stores and they also currently operate almost 40 seasonal stores mainly in the northern coast.

Speaker #3: Most encouragingly, profitability improved significantly. EBITDA losses narrowed substantially compared to last year. Largely driven by the progress of the Afua turnaround and some improvements in the portfolio quality.

Jeroen Wientjies: Still work to do, of course, particularly in BMB, but the trajectory remains clear for us and supports us in our confidence and the actions being taken. Turning to protein and frozen, which delivered another strong quarter of top-line growth. Revenue increased 22% year on year, supported by good performances across the entire portfolio. The expansion of our Saudi facility continued to support market penetration as well regional growth. However, profitability remained under pressure, with EBITDA declining 25% year on year, which is mainly due to higher raw material costs, primarily what we see in beef, one-off expenses during, related to a transformation, as well, ongoing ramp-up costs with regards to our Saudi facility.

Jeroen Nijs: Still work to do, of course, particularly in BMB, but the trajectory remains clear for us and supports us in our confidence and the actions being taken. Turning to protein and frozen, which delivered another strong quarter of top-line growth. Revenue increased 22% year on year, supported by good performances across the entire portfolio. The expansion of our Saudi facility continued to support market penetration as well regional growth. However, profitability remained under pressure, with EBITDA declining 25% year on year, which is mainly due to higher raw material costs, primarily what we see in beef, one-off expenses during, related to a transformation, as well, ongoing ramp-up costs with regards to our Saudi facility.

Speaker #3: There is still work to do, of course, particularly in B&B, but the trajectory remains clear for us and supports our confidence in the actions being taken.

Speaker #3: Turning to protein and frozen, which delivered another strong quarter of top line growth. Revenue increased 22% year on year. Supported by good performances across the entire portfolio.

Speaker #3: The expansion of our Saudi facility continued to support market penetration. And as well regional growth. However, profitability remained under pressure. With EBITDA declining 25% year on year, which is mainly due to higher raw material costs, primarily what we see in beef.

Speaker #3: One of expenses during related to transformation and as well ongoing ramp of cost with regards to our Saudi facility. While we are still in the transformation phase, we can see that clear signs of improvements over the last year which gives us confidence as well in the future growth.

Jeroen Wientjies: While we are still in the transformation phase, we can see that clear signs of improvements over the last year, which gives us confidence as well in the future growth, and the profitability of the business. Before we move to Q&A, let me leave you with a few final thoughts. The H1 2026 generated, and demonstrated, sorry, very clear resilience of Agthia's diversified portfolio and the progress of our transformation journey, despite, of course, the challenges due to the conflict. We delivered strong reported growth, significant profit improvements, materially stronger cash generation, and a much healthier balance sheet. While external challenges remain, we are continuing to build a stronger, more efficient and more capable business. We remain focused on execution, shareholder value creation, as well building a leading regional food and beverage platform for Agthia. Thank you for joining us here today.

Jeroen Nijs: While we are still in the transformation phase, we can see that clear signs of improvements over the last year, which gives us confidence as well in the future growth, and the profitability of the business. Before we move to Q&A, let me leave you with a few final thoughts. The H1 2026 generated, and demonstrated, sorry, very clear resilience of Agthia's diversified portfolio and the progress of our transformation journey, despite, of course, the challenges due to the conflict. We delivered strong reported growth, significant profit improvements, materially stronger cash generation, and a much healthier balance sheet. While external challenges remain, we are continuing to build a stronger, more efficient and more capable business. We remain focused on execution, shareholder value creation, as well building a leading regional food and beverage platform for Agthia. Thank you for joining us here today.

Speaker #3: And the profitability of the business. Before we move to Q&A, let me leave you with a few final thoughts. The first half of 2026 generated and demonstrated very clear resilience of Aghtia's diversified portfolio and the progress of our transformation journey despite of course the challenges due to the conflict.

Speaker #3: We delivered strong reported growth, significant profit improvements, materially stronger cash generation and a much healthier balance sheet. While external challenges remain, we are continuing to build a stronger, more efficient and more capable business.

Speaker #3: We remain focused on execution shareholder value creation and as well building a leading regional food and beverage platform for Aghtia. Thank you for joining us here today.

Speaker #3: And with that, I hand over now to the operator for a Q&A.

Jeroen Wientjies: With that, I hand over now to the operator for a Q&A session.

Jeroen Nijs: With that, I hand over now to the operator for a Q&A session.

Operator: Thank you. Thank you very much for the presentation. We'll now move to the question and answer section. If you would like to ask a question, please press star two on your phone and wait to be prompted. If you are dialed in by the web, you can type your question in the box provided or request to ask a voice question. We have already received some questions, text questions from Shahrukh Nawaz, First Abu Dhabi Bank. His first question is: We can see that there was decline in the water and food, excluding one-off and agri business during this quarter due to HORECA clients. How can we look at during the H2 2026, How was the July performance for the segments?

Operator: Thank you. Thank you very much for the presentation. We'll now move to the question-and-answer section. If you would like to ask a question, please press star two on your phone and wait to be prompted. If you are dialed in by the web, you can type your question in the box provided or request to ask a voice question. We have already received some questions, text questions from Shahrukh Nawaz, First Abu Dhabi Bank. His first question is: We can see that there was decline in the water and food, excluding one-off and agri business during this quarter due to HORECA clients. How can we look at during the H2 2026, How was the July performance for the segments?

Speaker #1: Thank you. Thank you very much for the presentation. So we'll now move to the question and answer section. If you would like to ask a question, please press star two on your phone and wait to be prompted.

Speaker #1: If you are dialed in by the web, you can type your question in the box provided or request to ask a voice question. We have already received some questions text questions from Shahrukh Navaz, first Abu Dhabi bank.

Speaker #1: His first question is, we can see that there was decline in the water and food excluding one of and agribusiness during this quarter. Due to Horeca clients, how can we look during the second half of 2026 and how was the July performance for this segments?

Speaker #2: Thank you for raising the question. So look, indeed so overall the business on a top line point of view was broadly flat as I explained.

Jeroen Wientjies: Thank you for raising the question. Overall, the business on a top-line point of view was broadly flat, as I explained, -0.6%. A lot of the growth was coming from the additional safety stock building on the water business. Actually in H1 in total, we also had some safety stock building on the agri business in Q1. That being said, we are, of course, seeing some impacts from the conflict, especially if you look at the food service business, the HORECA, there is a negative impact there. This is something that from an outlook point of view, because you're asking the questions from July and as well the performance for H2, I cannot comment on. Today, we're not making any forward-looking statements. What I can say is that despite the challenges, the underlying business has proven very resilient.

Jeroen Nijs: Thank you for raising the question. Overall, the business on a top-line point of view was broadly flat, as I explained, -0.6%. A lot of the growth was coming from the additional safety stock building on the water business. Actually in H1 in total, we also had some safety stock building on the agri business in Q1. That being said, we are, of course, seeing some impacts from the conflict, especially if you look at the food service business, the HORECA, there is a negative impact there. This is something that from an outlook point of view, because you're asking the questions from July and as well the performance for H2, I cannot comment on. Today, we're not making any forward-looking statements. What I can say is that despite the challenges, the underlying business has proven very resilient.

Speaker #2: Minus 0.6%. A lot of the growth was coming from the additional safety stock building in the water business, and actually, in H1 in total, we also had some safety stock building on the agribusiness in Q1.

Speaker #2: That being said, we are of course seeing some impacts from the conflict, especially if you look at the food service business, the Horeca, there is a negative impact there.

Speaker #2: But this is something that from an outlook point of view because you're asking the questions from July and as well the performance for H2.

Speaker #2: I cannot comment on. So we're not making today we're not making any forward looking statements. What I can say is that despite the challenges the underlying business has proven very resilient and from a reporting point of view we've made significant progress.

Jeroen Wientjies: From a reporting point of view, we've made significant progress. We've demonstrated very strong growth on the top line and the bottom line as well.

Jeroen Nijs: From a reporting point of view, we've made significant progress. We've demonstrated very strong growth on the top line and the bottom line as well.

Speaker #2: We've demonstrated very strong growth on the top line and the bottom line as well.

Operator: Okay. Thank you. Second question from Shahrukh. Is the company working on alternate trade routes to offset the challenges faced in the export sales?

Speaker #1: Okay. Thank you. Second question for from Shahrukh. Is the company working on alternate trade routes to offset the challenges faced in the export sales?

Jeroen Wientjies: Overall, with the closure of the Strait of Hormuz on and off, let me put it like that, we are, of course, looking at alternative routes. Here, there are two options that we use quite extensively over the last periods. On the one hand, you've got Fujairah here where we are using that especially to unload and make sure that from a supply point of view, there is no disruption. Secondly, there's also containers being shipped in and out from Khor Fakkan. For the outlook, let's say from a date point of view, the crop season is just starting. Here what we'll need to see is making sure that we secure that for H2.

Speaker #2: So overall with the closure of the Strait of Hormuz on and off. Let me put it like that. We are of course looking at alternative routes.

Jeroen Nijs: Overall, with the closure of the Strait of Hormuz on and off, let me put it like that, we are, of course, looking at alternative routes. Here, there are two options that we use quite extensively over the last periods. On the one hand, you've got Fujairah here where we are using that especially to unload and make sure that from a supply point of view, there is no disruption. Secondly, there's also containers being shipped in and out from Khor Fakkan. For the outlook, let's say from a date point of view, the crop season is just starting. Here what we'll need to see is making sure that we secure that for H2.

Speaker #2: Here there are two options that we use quite extensively over the last periods. On the one hand, you've got Fujairah here where we are using that especially to unload and make sure that from a supply point of view there is no disruption.

Speaker #2: And secondly, there's also containers being shipped in and out on from core Farhan. The let's say the for the outlook let's say from a date point of view the crop season is just starting so here what we'll we'll need to see is making sure that we secure that for the second half of the year.

Operator: Thank you. Thank you very much. Next question from Shahrukh. Do you see the S&D costs elevated in the remainder of 2026 as well?

Speaker #1: Thank you. Thank you very much. Next question from Shahrukh. Do you see the S&D costs elevated in the reminder of 2026 as well?

Jeroen Wientjies: I don't want to make any forward-looking statements, but overall, you could argue that indeed, I don't see short-term changes to the prices that we currently have.

Speaker #2: Again I don't want to make any forward looking statements. But overall you could argue that indeed I don't see short-term changes to the prices that we that we currently have.

Jeroen Nijs: I don't want to make any forward-looking statements, but overall, you could argue that indeed, I don't see short-term changes to the prices that we currently have.

Operator: Thank you. Last question from Shahrukh. Is the company planning to introduce new products in the upcoming periods, and it will be under specific segments?

Speaker #1: Thank you. And last question from Shahrukh. Is the company planning to introduce new products in the upcoming period and it will be under specific segments?

Jeroen Wientjies: As I mentioned, in terms of new product innovation will remain a key part of our strategy. I don't want to comment on new introductions. Of course, we will make sure that the market knows when we do new implementations. Clearly, we continue to grow the innovations that we do year on year. What we've just, let's say, explained as well as part of the presentation earlier on, we see some very nice innovations coming. When you look at the beverages, the first UAE-based energy drink that is using dates, that is, of course, a nice addition that we have moving from water to more functional beverages. We'll need to see how that plays out. At the moment, we see good traction, but we continue to push innovations across the board.

Speaker #2: So as I mentioned in terms of new product innovation will remain a key part of our strategy. So I don't want to comment on new introductions.

Jeroen Nijs: As I mentioned, in terms of new product innovation will remain a key part of our strategy. I don't want to comment on new introductions. Of course, we will make sure that the market knows when we do new implementations. Clearly, we continue to grow the innovations that we do year on year. What we've just, let's say, explained as well as part of the presentation earlier on, we see some very nice innovations coming. When you look at the beverages, the first UAE-based energy drink that is using dates, that is, of course, a nice addition that we have moving from water to more functional beverages. We'll need to see how that plays out. At the moment, we see good traction, but we continue to push innovations across the board.

Speaker #2: Of course we will make sure that the market knows when we do new implementations. But clearly we continue to grow the innovations that we do year on year.

Speaker #2: And what we've just let's say explained as well as part of the presentation earlier on. We see some very nice innovations coming when you look at the beverages the first UAE based energy drink that is using dates that is of course a nice addition that we have moving from water to more functional beverages.

Speaker #2: I'm willing to see how that plays out. But at the moment we see good traction. But we continue to push innovations across the board.

Speaker #2: I mean Abuawa is a very strong example. Growing significantly not just through opening of new stores which was about 10%. The remaining additional 15% of growth was actually coming as well from innovations.

Jeroen Wientjies: I mean, Al Foah is a very strong example, growing significantly, not just through opening up new stores, which was about 10%. The remaining additional 15% of growth was actually coming as well from innovations. It's something that is core to our growth ambition in Agthia and will continue, yes.

Jeroen Nijs: I mean, Al Foah is a very strong example, growing significantly, not just through opening up new stores, which was about 10%. The remaining additional 15% of growth was actually coming as well from innovations. It's something that is core to our growth ambition in Agthia and will continue, yes.

Speaker #2: So it's something that is core to our growth ambition in Aghtia and we'll continue. Yes.

Operator: Thank you. Thank you very much. Our next question is a voice question from Sumaya Al Jazeeri from SICO Securities. Sumaya, please go ahead. Your line is now open.

Speaker #1: Thank you, thank you very much. Our next question is a voice question from Sumaya at Al Jazeera from SICO Securities. Sumaya, please go ahead, your line is now open.

Sumaya Al Jazeeri: Good afternoon. Am I audible?

Speaker #3: Good afternoon. Am I audible?

Operator: Yes, you are. Please go ahead.

Speaker #1: Yes, you are. Please go ahead.

Sumaya Al Jazeeri: Perfect. Thank you. Thanks to the management for the presentation. I had two questions, if you may. One is regarding the UAE Food Security program. We've been booked as one-off in two consecutive quarters, two different segments, and the size has increased significantly. Can we know what is the contractual basis, and does it extend into, let's say, the end of 2026, H1 2027, or even further than that? On what basis is it still classified as non-recurring? The other question is regarding your cash flows in Q2. How much of it is repeatable and how much of it is structural versus payable timing?

Speaker #3: Perfect. Thank you. Thanks for the management for the presentation. I had two questions if you may. One is regarding the UAE food security program.

Speaker #3: So we've seen booked as one option two consecutive quarters. Two different segments. And the size is increased significantly. So can we know what is the contractual basis and does it extend into let's say the end of 2026 first half of 27 or even further than that?

Speaker #3: And on what basis is it still classified as non-recurring? The other question is regarding your cash flows in the second quarter. How much of it is how much of it is structural versus payables timing?

Jeroen Wientjies: Okay. Thank you for raising the questions. In short, I've understood because the line was a little bit bad, but I've understood two key questions. One was about the food security program and how that will evolve. The secondly was around the cash flow and how structural that is. On the first one, look, on the safety stock, Agthia plays a significant role, right? We're number one overall when it comes to beverages. We're number one when it comes to agri food. Of course, when the government is looking at building safety stocks, it's very logical that they as well come to us and talk to us. As I mentioned in Q1, we are building some extra safety stocks when it comes to agri in particular. Here we have been building a safety stock when it comes to beverages.

Jeroen Nijs: Okay. Thank you for raising the questions. In short, I've understood because the line was a little bit bad, but I've understood two key questions. One was about the food security program and how that will evolve. The secondly was around the cash flow and how structural that is. On the first one, look, on the safety stock, Agthia plays a significant role, right? We're number one overall when it comes to beverages. We're number one when it comes to agri food. Of course, when the government is looking at building safety stocks, it's very logical that they as well come to us and talk to us. As I mentioned in Q1, we are building some extra safety stocks when it comes to agri in particular. Here we have been building a safety stock when it comes to beverages.

Speaker #2: Okay. So thank you for raising the questions. So in short I've understood because the line was a little bit bad but I've understood two key questions.

Speaker #2: One was about the food security program and the how that will evolve. And the secondly was around the cash flow and how structural that is.

Speaker #2: So on the first one look on the safety on the safety stock so Aghtia plays a significant role right. We're number one overall when it comes to beverages.

Speaker #2: We're number one when it comes to our food. And so of course when the government is looking at building safety stocks it's very logical that they as well come to us and talk to us.

Speaker #2: As I mentioned in the first quarter we have building some extra safety stocks when it comes to Agri. And in the particular here we have been building safety stock when it comes to beverages.

Speaker #2: Now this is something that we've organized but honestly we were actually also in contact with other producers and we enabled the safety stock not just from our side that Aghtia but also from other suppliers.

Jeroen Wientjies: Now, this is something that we've organized, but honestly, we were actually also in contact with other producers, and we enabled the safety stock, not just from our side at Agthia, but also from other suppliers. When it comes to how this will evolve over the next quarters or maybe into next year, that is very difficult for me to assess. That is really a government decision. We are, like I said, in regular contact, I can't give any outlook in terms of how that is going to evolve. What I would say is that we've been very transparent here. We've highlighted this as a one-off. At least from an investor point of view, we've been very transparent on it, and you can make your proper assessment based on that, assuming that it's really a one-timer. That doesn't mean that it cannot continue going forward.

Jeroen Nijs: Now, this is something that we've organized, but honestly, we were actually also in contact with other producers, and we enabled the safety stock, not just from our side at Agthia, but also from other suppliers. When it comes to how this will evolve over the next quarters or maybe into next year, that is very difficult for me to assess. That is really a government decision. We are, like I said, in regular contact, I can't give any outlook in terms of how that is going to evolve. What I would say is that we've been very transparent here. We've highlighted this as a one-off. At least from an investor point of view, we've been very transparent on it, and you can make your proper assessment based on that, assuming that it's really a one-timer. That doesn't mean that it cannot continue going forward.

Speaker #2: When it comes to how this will evolve over the next quarters, or maybe into next year, right, that is very difficult for me to assess.

Speaker #2: That is really a government decision. We are, like I said, in regular contact, and so I can't give any outlook in terms of how that is going to evolve.

Speaker #2: What I would say is that we've been very transparent here. We've highlighted this as a one-off. So at least from a investor point of view we've been very transparent on it and you can make your proper assessments based on that.

Speaker #2: Assuming that it's really a one-time thing. That doesn't mean that it cannot continue going forward. Just want to be clear here. Then when it comes to cash flow from a cash flow point of view we've indeed we've made significant an improvement versus last year.

Jeroen Wientjies: Just want to be clear here. When it comes to cash flow, from a cash flow point of view, indeed, we've made significant improvement versus last year. A part of that is indeed a one-timer, like I explained. The fact that supply chain financing was stopped, or at least the old program was stopped at the end of 2024, has had these implications on the cash flow because it's a variance of a variance, of course, in terms of how that is being calculated. When you look at the rest, the underlying performance, the EBITDA very clearly is structural, I would say, at least in terms of the delivery from Q2 and H1. When you look at the inventories and as well payables, I would say, I would more argue that there are some, let's say, phasing related impacts here.

Jeroen Nijs: Just want to be clear here. When it comes to cash flow, from a cash flow point of view, indeed, we've made significant improvement versus last year. A part of that is indeed a one-timer, like I explained. The fact that supply chain financing was stopped, or at least the old program was stopped at the end of 2024, has had these implications on the cash flow because it's a variance of a variance, of course, in terms of how that is being calculated. When you look at the rest, the underlying performance, the EBITDA very clearly is structural, I would say, at least in terms of the delivery from Q2 and H1. When you look at the inventories and as well payables, I would say, I would more argue that there are some, let's say, phasing related impacts here.

Speaker #2: There is a part of that is indeed a one-timer like I explained. The fact that supply chain financing was stopped and at least the old program was stopped at the end of 2024 has had these implications on the cash flow.

Speaker #2: Because it's a variance of a variance of course in terms of how that is being calculated. But when you look at the rest the underlying performance the EBITDA very clearly is structural I would say.

Speaker #2: At least in terms of the delivery from Q2 and H1. Then when you look at the inventories and as well payables I would say I would more argue that there are some let's say phasing related impacts here.

Jeroen Wientjies: The fact that due to the conflict, some of the shipments are arriving late reduces our inventories now. We luckily have enough to service the market. That's one element which I would call out is phasing. The second element on payables is the subsidies from the farmers. Like I explained, this is something that is happening year after year. However, this year we have received that in June versus the previous year in July. Again, that's not a structural improvement to your point, and that's also why we highlighted it as phasing. That being said, cash flow remains a key priority for us, and we will continue to make improvements and structural improvements. Just as well to voice over, we've started a new supply chain financing program recently.

Jeroen Nijs: The fact that due to the conflict, some of the shipments are arriving late reduces our inventories now. We luckily have enough to service the market. That's one element which I would call out is phasing. The second element on payables is the subsidies from the farmers. Like I explained, this is something that is happening year after year. However, this year we have received that in June versus the previous year in July. Again, that's not a structural improvement to your point, and that's also why we highlighted it as phasing. That being said, cash flow remains a key priority for us, and we will continue to make improvements and structural improvements. Just as well to voice over, we've started a new supply chain financing program recently.

Speaker #2: The fact that due to the conflict some of the shipments are arriving late reduces our inventories now. We luckily have enough to service the market.

Speaker #2: So that's one element which I would call out is phasing. The second element on payables is the subsidies from the farmers. Like I explained this is something that is happening year after year.

Speaker #2: However this year we have received that in June versus the previous year in July. So again that's not a structural improvement to your point and that's also why we've highlighted it as phasing.

Speaker #2: That being said I mean cash flow remains a key priority for us and we will continue to make improvements. And structural improvements. Just as well to voice over we've started a new supply chain financing program recently.

Speaker #2: I've touched based on this as well in Q1 and I've indicated that I'm very strong supporter of a program like this. And we've actually done launched this new program across more than 100 suppliers a couple of weeks ago.

Jeroen Wientjies: I've touched base on this as well in Q1, and I've indicated that I'm a very strong supporter of a program like this. We've actually launched this new program across more than 100 suppliers a couple of weeks ago. Again, this is just an example that we will continue to build and ensure structural improvements of cash flow going forward. Hope that addresses your question.

Jeroen Nijs: I've touched base on this as well in Q1, and I've indicated that I'm a very strong supporter of a program like this. We've actually launched this new program across more than 100 suppliers a couple of weeks ago. Again, this is just an example that we will continue to build and ensure structural improvements of cash flow going forward. Hope that addresses your question.

Speaker #2: So again this is just an example that we will continue to build and ensure structural improvements of cash flow going forward. Hope that addresses your our question.

Speaker #3: Thank you. Yeah.

[Analyst]: Thank you.

Sumaya Al Jazeeri: Thank you.

Operator: Okay. Thank you. Thank you very much. Before I move to the next question, just a quick reminder. If you'd like to ask a voice question and you're connected through the phone, please press star two from your phone keypad and wait for your name to be prompted. If you are connected through the web, you can also request to ask a voice question or send question as a text. Our next question comes from Hetal Parikh from ABI Analytics. Gross margins remained stable in the protein and frozen and water and food segments in H1 of 2026, while the agribusiness segment saw margin pressure and the snacking segment deliver a significant improvement. How should we think about segmental gross margin trends going forward, and what are the key drivers behind your outlook?

Speaker #1: Okay. Thank you. Thank you very much. Before I move to the next question just a quick reminder. If you'd like to ask a voice question and you're connected through the phone please press star two from your phone keypad and wait for your name to be prompted.

Speaker #1: If you're connected through the web you can also request to ask a voice question or send question as a text. So our next question comes from Hetali Parikh from ABI Analytics.

Speaker #1: Gross margins remain stable in the protein and frozen and water and food segments in first half of 2026. While the Agri business segment so margin pressure and the snacking segment deliver a significant improvement.

Speaker #1: How should we think about segmental gross margin trends going forward, and what are the key drivers behind your outlook?

Jeroen Wientjies: Thanks for raising the question. From a gross margin point of view, protein and frozen as well, water and food segments remained indeed stable. The agribusiness under pressure, while snacking significantly improved. If you look at the agribusiness, like I've mentioned, there is a lot of strong competitiveness on the market. That's put some pressure on it. Like I've said many times before, we're not chasing top line. We are really looking at how can we structurally improve the profits. We do make a very conscious choice in terms of the top lines that we're going after. When it comes to the snacking business, this is indeed where most of the improvement came from. On the one hand, you've got the one-timers that we've explained before. There's two elements to it.

Speaker #2: So thanks for raising the question. From a gross margin point of view so protein and frozen as well water and food segments remain indeed stable.

Jeroen Nijs: Thanks for raising the question. From a gross margin point of view, protein and frozen as well, water and food segments remained indeed stable. The agribusiness under pressure, while snacking significantly improved. If you look at the agribusiness, like I've mentioned, there is a lot of strong competitiveness on the market. That's put some pressure on it. Like I've said many times before, we're not chasing top line. We are really looking at how can we structurally improve the profits. We do make a very conscious choice in terms of the top lines that we're going after. When it comes to the snacking business, this is indeed where most of the improvement came from. On the one hand, you've got the one-timers that we've explained before. There's two elements to it.

Speaker #2: The Agri business under pressure. While snacking significantly improved. So if you look at the Agri business like I've mentioned there is a lot of strong competitiveness on the market.

Speaker #2: So that's put some pressure on it. And like I've said many times before we're not chasing top line. We are really looking at how can we structurally improve the profits.

Speaker #2: And we do make a very conscious choice in terms of the top lines that we're going after. When it comes to the snacking business this is indeed where most of the improvement came from.

Speaker #2: On the one hand, you've got the one-timers that we've explained before. There are two elements to it. One is the ones that we've highlighted due to the one-timers when it comes to BADAP.

Jeroen Wientjies: One is the ones that we've highlighted due to the one-timers when it comes to Bateel, there is as well another portion to it, which is the liquidation of the dates, the international dates last year. I touched based on this in the presentation, in the past, we had a lot of international dates that were being bought. This is something that we've decided not to do anymore, not to pursue anymore, because we saw that there were especially issues when it comes to selling those international dates. We were left with quite a stock at the end of 2024, which we then had to liquidate in 2025. That indeed helped us on a top-line point of view, it was very negative on the bottom line in 2025.

Jeroen Nijs: One is the ones that we've highlighted due to the one-timers when it comes to Bateel, there is as well another portion to it, which is the liquidation of the dates, the international dates last year. I touched based on this in the presentation, in the past, we had a lot of international dates that were being bought. This is something that we've decided not to do anymore, not to pursue anymore, because we saw that there were especially issues when it comes to selling those international dates. We were left with quite a stock at the end of 2024, which we then had to liquidate in 2025. That indeed helped us on a top-line point of view, it was very negative on the bottom line in 2025.

Speaker #2: But there is as well another portion to it which is the liquidation of the dates the international dates last year. I've touched based on this in the presentation but in the past we had a lot of international dates that were being bought.

Speaker #2: And this is something that we've decided not to do anymore. Not to pursue anymore because we saw that there were especially issues when it comes to selling those international dates.

Speaker #2: And we were left with quite a stock at the end of 2024 which we then had to liquidate in 2025. So that indeed helped us on a top line point of view but it was very negative on the bottom line in 2025.

Speaker #2: So that's a good example where we're much more conscious of the sales that we want to do. And these international date businesses is not something that we've reduced significantly.

Jeroen Wientjies: That's a good example where we're much more conscious of the sales that we want to do. These international date businesses is not something that we've reduced significantly. Therefore, automatically, the margin improved. Again, conscious choice is not to chase top line, really protect and make the right choices from the profit point of view.

Jeroen Nijs: That's a good example where we're much more conscious of the sales that we want to do. These international date businesses is not something that we've reduced significantly. Therefore, automatically, the margin improved. Again, conscious choice is not to chase top line, really protect and make the right choices from the profit point of view.

Speaker #2: And therefore, automatically, the margin improved. So, again, conscious choices not to chase the top line, but really protect and make the right choices from a profit point of view.

Operator: Thank you. Thank you very much. Another question from Hetal. Following the strong gross margin improvements in H1 2026, should we expect the snacking business to normalize back towards its historical margin range, or are the recent gains sustainable?

Speaker #1: Thank you. Thank you very much. Another question from Hetali. Following the strong gross margin improvements in first half of 2026 should we expect the snacking business to normalize back toward its historical margin range or are the recent gains sustainable?

Speaker #2: Thank you for raising the question. I think here again I need to just voice over that we have always highlighted in our performance the underlying impacts from the past.

Jeroen Wientjies: Thank you for raising the question. I think here again, I need to just voice over that we have always highlighted in our performance the underlying impacts from the past. What you see in our H1 delivery is that we are delivering a normal performance. The only thing I would argue here is, I don't want to make a statement on the future, on the outlook. We're not in a position at the moment to do this because of the conflict, so I want to restrain from that. For me, I think most importantly to underline here in this call, which is focused on Q2 and H1, is that we are making good progress when it comes to the transformation journey. I would, however, highlight that if you look at the Q2 performance, we are still impacted by the regional conflict.

Jeroen Nijs: Thank you for raising the question. I think here again, I need to just voice over that we have always highlighted in our performance the underlying impacts from the past. What you see in our H1 delivery is that we are delivering a normal performance. The only thing I would argue here is, I don't want to make a statement on the future, on the outlook. We're not in a position at the moment to do this because of the conflict, so I want to restrain from that. For me, I think most importantly to underline here in this call, which is focused on Q2 and H1, is that we are making good progress when it comes to the transformation journey. I would, however, highlight that if you look at the Q2 performance, we are still impacted by the regional conflict.

Speaker #2: And what you see in our H1 delivery is that we are delivering a normal performance. The only thing I would argue here is then I don't want to make a statement on the future on the outlook.

Speaker #2: We're not in the position at the moment to do this because of the conflict. So I want to restrain from that. So for me I think most importantly to underline here in this call which is focused on Q2 and H1 is that we are making good progress when it comes to the transformation journey.

Speaker #2: I would however highlight that if you look at the Q2 performance we are still impacted by the regional conflict. And that's why I think on snacking there is still negative impact but I don't want to make any future outlook statements.

Jeroen Wientjies: That's why I think on snacking, there is still a negative impact. I don't want to make any future outlook statements.

Jeroen Nijs: That's why I think on snacking, there is still a negative impact. I don't want to make any future outlook statements.

Speaker #1: Thank you. Thank you very much. Another question from Hetali. If there had been no geopolitical disruptions in the region during the quarter what level of revenue and net profit growth do you believe Agda could have achieved in second quarter 2026?

Operator: Thank you. Thank you very much. Another question from Hetal. If there had been no geopolitical disruptions in the region during the quarter, what level of revenue and net profit growth do you believe Agthia could have achieved in Q2 2026? Could you help us quantify the impact of these disruptions on the quarter's financial performance?

Speaker #1: Could you help us quantify the impact of this disruptions on the quarter's financial performance?

Jeroen Wientjies: Thank you for raising the question. I appreciate the question. I think it's a very good question. We've consciously decided not to provide any details on this because it's a very complex exercise to do. It's not like the previous one-timers that we've been raising in terms of transparency. Let's say, conflict-related impact is across different, let's say, businesses. There are some pluses and minuses as well. We are refraining from it. What I could highlight is that, yes, there has been an impact. I don't want to share specifically the extent of that nor the percentage impact. I hope you understand because of the complexity which comes along with this.

Jeroen Nijs: Thank you for raising the question. I appreciate the question. I think it's a very good question. We've consciously decided not to provide any details on this because it's a very complex exercise to do. It's not like the previous one-timers that we've been raising in terms of transparency. Let's say, conflict-related impact is across different, let's say, businesses. There are some pluses and minuses as well. We are refraining from it. What I could highlight is that, yes, there has been an impact. I don't want to share specifically the extent of that nor the percentage impact. I hope you understand because of the complexity which comes along with this.

Speaker #2: Thank you for raising the question. I appreciate the question. I think it's a very good question. But we've consciously decided not to provide any details on this.

Speaker #2: Because it's a very complex exercise to do. I mean it's not like the previous one-timers that we've been raising in terms of transparency. The let's say conflict related impact is across different let's say businesses.

Speaker #2: And there are some pluses and minuses as well. So we are restraining from it. What I could highlight is that yes there has been an impact.

Speaker #2: But I don't want to share specifically the extent of that nor the percentage impact. And I hope you understand because of the complexity which comes along with this.

Speaker #1: Thank you. Thank you very much. Before I move to the next question just a quick reminder. If you're connected via the phone and you would like to ask a voice question please press star two on your phone keypad and wait for your name to be prompted.

Operator: Thank you. Thank you very much. Before I move to the next question, just a quick reminder. If you are connected via the phone and you would like to ask a voice question, please press star two on your phone keypad and wait for your name to be prompted. If you are connected via the web, you can send your question with the box provided or request to ask a voice question. Our next text question comes from Ankit Bansal, Sandrock Capital. Once the KSA facility fully ramps up, how much normalized EBITDA margin are you targeting for the protein segment?

Speaker #1: If you are connected via the web you can send your question with a box provided or request to ask a voice question. Our next text question comes from Ankit Bansal Sandro Capital.

Speaker #1: Once the KSA facility fully ramps up how much normalized EBITDA margin are you targeting for the protein segment?

Speaker #2: Thank you for raising the question. I think this is again more of a forward outlooking statement. So I'm not going to go into the details but I would say though is that if you look if you take a step back and you look at the protein segments over the next five years we definitely have the ambition to improve the net profit percentages there.

Jeroen Wientjies: Thank you for raising the question. I think this is again, more of a forward outlook statement, I'm not going to go into the details. What I would say, though, is that if you take a step back and you look at the protein segments, over the next five years, we definitely have the ambition to improve the net profit percentages there. Overall, we see opportunities there. Of course, the KSA facility, as you mentioned as well in your question, the fact that it's ramping up will help us in improving the margins. Still, KSA is a small part of the overall protein segment. Remember, we are number one in Egypt, we're number one in Jordan with our Nabil Foods. The question in terms of improving the profitability profile on the protein is much broader than that.

Jeroen Nijs: Thank you for raising the question. I think this is again, more of a forward outlook statement, I'm not going to go into the details. What I would say, though, is that if you take a step back and you look at the protein segments, over the next five years, we definitely have the ambition to improve the net profit percentages there. Overall, we see opportunities there. Of course, the KSA facility, as you mentioned as well in your question, the fact that it's ramping up will help us in improving the margins. Still, KSA is a small part of the overall protein segment. Remember, we are number one in Egypt, we're number one in Jordan with our Nabil Foods. The question in terms of improving the profitability profile on the protein is much broader than that.

Speaker #2: Overall we see opportunities there. And of course the KSA facility as you mentioned as well in your question the fact that it's ramping up will help us in improving the margins.

Speaker #2: But still, KSA is a small part of the overall protein segment. Remember, we are number one in Egypt. We're number one in Jordan with the Abiel brand.

Speaker #2: So the question in terms of improving the profitability profile on the protein is much broader than that. And as an example as well to the previous or linking this question with the previous question the fact that we're ramping up KSA facility with the speed that we're doing now because we're running almost at full capacity now is due to the conflict as well where let's say significant customers were coming to us.

Jeroen Wientjies: As an example as well to the previous, or linking this question with the previous question, the fact that we're ramping up KSA facility with the speed that we're doing now, because we're running almost at full capacity now, is due to the conflict as well, where, let's say significant customers were coming to us, or sizable customers were coming to us because they were having a negative impact from a supply point of view. They saw the factory, they were impressed with the quality of the factory, and immediately started ordering from us. That's just an example of one of the positives as well from the conflict. We hope, of course, by building the customer relationship, that that will now continue. I would argue again that KSA is a small part of the overall protein picture.

Jeroen Nijs: As an example as well to the previous, or linking this question with the previous question, the fact that we're ramping up KSA facility with the speed that we're doing now, because we're running almost at full capacity now, is due to the conflict as well, where, let's say significant customers were coming to us, or sizable customers were coming to us because they were having a negative impact from a supply point of view. They saw the factory, they were impressed with the quality of the factory, and immediately started ordering from us. That's just an example of one of the positives as well from the conflict. We hope, of course, by building the customer relationship, that that will now continue. I would argue again that KSA is a small part of the overall protein picture.

Speaker #2: So sizable customers were coming to us because they were having a negative impact from a supply point of view. They saw the factory. They were impressed with the quality of the factory and immediately started ordering from us.

Speaker #2: So that's just an example of one of the positives as well during from the conflict. And we hope of course by building the customer relationship that that will now continue.

Speaker #2: But I would argue again that KSA is a small part of the overall protein picture. Yes the ambition over the long term is to significantly increase the margins in this segment.

Jeroen Wientjies: Yes, the ambition over the long term is to significantly increase the margins in this segment. Again, I don't want to put any forward statements or specific numbers to that.

Jeroen Nijs: Yes, the ambition over the long term is to significantly increase the margins in this segment. Again, I don't want to put any forward statements or specific numbers to that.

Speaker #2: But again I don't want to put any forward statements or specific numbers to it.

Speaker #1: Thank you. Thank you very much. We have received the next text question. The board of directors recommended to increase dividend distribution. How do you plan to continue growing shareholder returns while also supporting operational expansion?

Operator: Thank you. Thank you very much. We have received the next text question. The board of directors recommended to increase dividend distribution. How do you plan to continue growing shareholder returns while also supporting operational expansion?

Speaker #2: Thank you for raising the question. So indeed the board's decision to raise the interim dividend by 14.4% which is by the way our second consecutive increase because last year we've increased it as well the second half of the year.

Jeroen Wientjies: Thank you for raising the question. Indeed, the board's decision to raise the interim dividend by 14.4%, which is, by the way, our second consecutive increase, because last year we've increased it as well, the H2 of the year. I would say, as I mentioned earlier, it really reflects the confidence of the board and the group's cash generation, and as well, the strength of the balance sheets that we've built across the last years. Our approach to shareholder returns is grounded in a specific balance, which is, we want to reward shareholders consistently while retaining as well the flexibility to keep investing in growth. Some of the investments that we've recently done, for example, as well, the Saudi protein facility is a good example of that.

Jeroen Nijs: Thank you for raising the question. Indeed, the board's decision to raise the interim dividend by 14.4%, which is, by the way, our second consecutive increase, because last year we've increased it as well, the H2 of the year. I would say, as I mentioned earlier, it really reflects the confidence of the board and the group's cash generation, and as well, the strength of the balance sheets that we've built across the last years. Our approach to shareholder returns is grounded in a specific balance, which is, we want to reward shareholders consistently while retaining as well the flexibility to keep investing in growth. Some of the investments that we've recently done, for example, as well, the Saudi protein facility is a good example of that.

Speaker #2: I would say as I mentioned earlier it really reflects the confidence of the board and the group's cash generation. And as well the strength of the balance sheets that we've built across the last years.

Speaker #2: Our approach to shareholder returns is grounded in a specific balance which is we want to reward shareholders consistently while retaining as well the flexibility to keep investing in growth.

Speaker #2: And some of the investments that we've recently done, for example, as well—the Saudi protein facility is a good example of that. It's a long-term investment that is now beginning to contribute to our performance.

Jeroen Wientjies: It's a long-term investment that is now beginning to contribute to our performance, and we will continue to look for both investments in growth as well as investments in opportunities to improve the margins, so value creation related investments. Going forward, we intend to keep striking that same balance. Disciplined capital allocation that supports both the continued investments in our growth and as well our profitability projects, while as well growing the returns for our shareholders. Thank you for raising the question.

Jeroen Nijs: It's a long-term investment that is now beginning to contribute to our performance, and we will continue to look for both investments in growth as well as investments in opportunities to improve the margins, so value creation related investments. Going forward, we intend to keep striking that same balance. Disciplined capital allocation that supports both the continued investments in our growth and as well our profitability projects, while as well growing the returns for our shareholders. Thank you for raising the question.

Speaker #2: And we will continue to look for both investments in growth as well as investment in opportunities to improve the margins. So value creation related investments.

Speaker #2: And going forward we will we intend to keep striking that same balance. Disciplined capital allocation that support both the continued investments in our growth and as well our profitability projects.

Speaker #2: While as well growing the returns for our shareholders. Thank you for raising the question.

Speaker #1: Thank you. Thank you very much. We have received another text question. We've regional tensions and shipping route disruptions in the Red Sea and Gulf continuing.

Operator: Thank you. Thank you very much. We have received another text question. With regional tensions and shipping route disruptions in the Red Sea and Gulf continuing, what practical steps has Agthia taken to ensure the uninterrupted flow of raw materials and maintain supply continuity?

Speaker #1: What practical steps has Aghtia taken to ensure the uninterrupted flow of raw materials and maintain supply continuity?

Jeroen Wientjies: Yes. Thank you. Operational continuity has always been a top priority for us throughout this period. Practically, it means managing procurements, double checking, triple checking our inventory positions, and especially then routing decisions as well. We've also worked closely with our network partners to adapt routing where necessary, and we continue to monitor freight and insurance costs closely given the broader pressure that they're placing on the cost basis across the industry. Throughout this disruption, our operations have remained fully functional. No material disruption to customer supply or commercial relationships in the region, and that continuity remains our focus as the situation unfolds. I've indicated earlier, we're definitely leveraging Fujairah and as well Khor Fakkan as two options to mitigate the closure of the Strait of Hormuz.

Jeroen Nijs: Yes. Thank you. Operational continuity has always been a top priority for us throughout this period. Practically, it means managing procurements, double checking, triple checking our inventory positions, and especially then routing decisions as well. We've also worked closely with our network partners to adapt routing where necessary, and we continue to monitor freight and insurance costs closely given the broader pressure that they're placing on the cost basis across the industry. Throughout this disruption, our operations have remained fully functional. No material disruption to customer supply or commercial relationships in the region, and that continuity remains our focus as the situation unfolds. I've indicated earlier, we're definitely leveraging Fujairah and as well Khor Fakkan as two options to mitigate the closure of the Strait of Hormuz.

Speaker #2: Yes thank you. So operational continuity has always been a top priority for us throughout this period. Practically it means managing procurements double checking triple checking our inventory positions and especially then routing decisions as well.

Speaker #2: We maintain a healthy inventory cover to support business continuity, even as logistics conditions shifted. We've also worked closely with our network partners to adapt routing where necessary, and we continue to monitor freight and insurance costs closely, given the broader pressure that they're placing on the cost basis across the industry.

Speaker #2: Throughout this disruption our operations have remained fully functional. No material disruption to customer supply or commercial relationships in the region. And that continuity remains our focus as the situation unfolds.

Speaker #2: I've indicated earlier that we're definitely leveraging Fujairah, as well as Khor Fakkan, as options to mitigate the closure of the Strait of Hormuz.

Speaker #1: Thank you. Thank you very much. At this point in time we are seeing no further questions. So I would like to pass the line back to Aghtia's team for their closing remarks.

Operator: Thank you. Thank you very much. At this point in time, we are seeing no further questions, I would like to pass the line back to Agthia team for their closing remarks.

Jeroen Wientjies: Thank you very much for joining us today. I hope this session was helpful for everyone, we're very proud of the, let's say, reported delivery of the results, both on the top line and the bottom line. As well the significant increase in cash flow. Pleased as well to see the board's confidence and the fact that the dividends have been increased with 14.4%. As well, from a balance sheet point of view, we are sitting on a healthy profile with cash on the side to mitigate the conflict. I know there were some questions on, let's say, the H2. As I mentioned, this is something that at this point I cannot comment on, I hope everybody realizes that this is still a very volatile environment, I hope there's an understanding for that.

Speaker #2: So thank you very much for joining us today. I hope this session was helpful for everyone. We are very proud of the let's say reported delivery of the results both on the top line and the bottom line.

Jeroen Nijs: Thank you very much for joining us today. I hope this session was helpful for everyone, we're very proud of the, let's say, reported delivery of the results, both on the top line and the bottom line. As well the significant increase in cash flow. Pleased as well to see the board's confidence and the fact that the dividends have been increased with 14.4%. As well, from a balance sheet point of view, we are sitting on a healthy profile with cash on the side to mitigate the conflict. I know there were some questions on, let's say, the H2. As I mentioned, this is something that at this point I cannot comment on, I hope everybody realizes that this is still a very volatile environment, I hope there's an understanding for that.

Speaker #2: And as well the significant increase in cash flow. Please as well to see the board's confidence and the fact that the dividends have been increased with 14.4%.

Speaker #2: And as well we are from a balance sheet point of view we are sitting on a healthy profile. With cash on the side to mitigate the conflict.

Speaker #2: I know there were some questions on let's say the second half of the year as I mentioned this is something that at this point I cannot comment on and I hope everybody realizes that this is still a very volatile environment.

Speaker #2: And I hope there's an understanding for that. Thank you very much for joining us today and any further questions please reach out to our IR team.

Jeroen Wientjies: Thank you very much for joining us today. Any further questions, please reach out to our IR team. They're happy to assist you. Thank you very much.

Jeroen Nijs: Thank you very much for joining us today. Any further questions, please reach out to our IR team. They're happy to assist you. Thank you very much.

Speaker #2: They're happy to assist you. Thank you very much.

Tatiana Vlasova: Thank you very much.

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Q2 2026 Agthia Group PJSC Earnings Call

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