A steady 2Q for Alpha Data + Agthia

Sustained 2Q demand lifts Alpha Data’s earnings

Digital transformation demand buoyed Alpha Data’s 2Q earnings. The IT services firm’s income fell 1.2% y-o-y to AED 44.4 mn, while its revenue grew 13.6% to AED 806.5 mn, according to financial statements (pdf). Revenue for the quarter was 24.1% ahead of 1Q results, while the slower income growth was chalked up to backlog rollout timing, Alpha Data said in its management discussion and analysis report (pdf). Growth came primarily from the solutions segment (up 13.4% y-o-y) and the services segment (up 12.1% y-o-y).

On a 1H basis, the company’s bottom line rose 3.9% y-o-y to AED 79.9 mn on the back of an 11.7% top-line uptick to AED 1.5 bn. The solutions segment provided the lion’s share of 1H revenue with AED 1.2 bn, followed by services with AED 133 mn, and talent with AED 88 mn.

Steady operations boost Agthia’s results

Resilient operations and supply chains helped ADQ-owned F&B firm Agthia close out 2Q with AED 24.5 mn in net income, following a AED 37 mn loss in the same period the year before, the firm said in its financials (pdf). Revenue for the period came in at AED 1.3 bn, up 11.9% y-o-y, following a one-off AED 142.3 mn sale in its water and food segment, according to its management discussion and analysis report (pdf). Excluding the one-off, the company’s top line was broadly stable, it said.

For 1H, Agthia’s bottom line jumped to AED 121.4 mn, up from AED 49.1 mn the year before, on the back of a 7.4% y-o-y uptick in revenue to AED 2.6 bn paired with higher finance income.

The water and food segment drove the largest share of revenue, generating AED 440.4 mn in 2Q (+38.9% y-o-y) and AED 770.9 mn in 1H (+27.3% y-o-y). Snacking revenue slipped, however, dropping 25.9% y-o-y in 2Q and 18.3% in 1H.

Dividends: The board recommended dividends of 11.792 fils per share for 1H, up 14.4% y-o-y.