Invictus Investment Company PLC (ADX: INVICTUS), a leading agro-food enterprise in the Middle East, Africa and Asia, today announced its financial results for the 12 months ended December 31, 2023. The Company reported strong financial and operational performance, with a revenue growth of 35% year-on-year to AED 8.1 billion in 2023 – its highest annual revenue as a listed company – as compared to AED 5.9 billion in 2022. Invictus Investment’s Board of Directors has also recommended AED 45.0 million in dividends, to be paid in the second quarter of 2024.
Net profit recorded was AED 213.6 million in 2023, against AED 454.5 million in 2022, in a reflection of lower international commodity prices, and the Company’s strategic investments in resources and enhancing operating capacity as part of its expansionary move into new operational markets as well as additional product areas. Despite this, the Company maintained healthy profit margins – above industry average levels – and achieved significant growth in commodity transaction volumes, which surged by over 110% to reach 5.37 million metric tonnes, as compared with 2.56 million metric tonnes in 2022.
Invictus Investment’s expansionary strategy during 2023 witnessed the Company extend its geographical footprint to ten new markets, including Morocco, Tanzania, Mozambique, Turkey, Malawi, Burundi, Rwanda, Kenya, Uganda and Lebanon, as well as increase its commodity transaction volumes in two existing markets: Algeria and Egypt. This growth was also accompanied by the introduction of products, including soya bean meal and seed, corn, vegetable oil, soya bean hulls, fertilisers, wheat flour and Distiller’s Dried Grains with Solubles (DDGS) – further diversifying the Company’s commodity portfolio.
Commenting on the results, Amir Daowd Abdellatif, CEO of Invictus Investment, said: “Amid the backdrop of geopolitical and economic challenges in the global landscape, we have delivered a record financial performance in 2023 – a resounding testament to our operational resilience. The year has been one of remarkable strides in our growth journey, most significantly through geographic expansion into ten new markets and the diversification of our portfolio into new products. As we move ahead, we will continue to invest strategically in our supply chain to enhance our operational capabilities and meet the evolving needs of our global clientele. Our focus will remain on downstream acquisitions in the value chain, with the aim to become a vertically integrated agro-food enterprise. The path ahead is about continuous innovation, strategic partnerships, acquisitions and sustainable growth.”
Invictus Investment has also made significant progress in developing and finalising its Environmental, Social and Governance (ESG) framework in a move that is poised to enhance long-term value for stakeholders, and is emblematic of the Company’s commitment to aligning itself with the principles of positive environmental impact, social responsibility and robust governance.
Looking forward, Invictus Investment remains focused on exploring potential acquisitions, developing new joint ventures in strategic markets, and continuing its expansion across key African markets. The Company is committed to sustaining its growth trajectory, exploring new investment opportunities, and enhancing its contributions to the global food supply chain to benefit all of its stakeholders.
Financial highlights
- Net revenue saw strong top-line growth, rising 35% to AED 8.1 billion in 2023, compared to AED 5.9 billion in 2022.
- Despite lower international commodity prices, and the Company’s investments in resources and operational capacity enhancement as part of its geographic expansion, net profit remained resilient at AED 213.6 million in 2023, compared to AED 454.5 million in 2022.
- Total equity rose to AED 1.06 billion in 2023, from AED 1.02 billion the previous year.
- Revenues for wheat increased to AED 2.8 billion in 2023, compared to AED 2.6 billion in 2022, while barley doubled to AED 122.9 million, compared to AED 59.4 million in 2022.
- 2023 was also marked by the successful introduction of new commodity trades including soya bean meal and seed, corn, vegetable oil, soya bean hulls, fertilisers, wheat flour and DDGS, which added more than AED 1.9 billion, AED 1.3 billion, AED 104 million, AED 10.3 million, AED 75.3 million, AED 171 million and AED 62 million, respectively, to revenues in 2023.
- The Board of Directors has recommended paying AED 0 million in dividends for the year.
Geographical highlights
Invictus Investment aims to achieve its strategic goals of becoming a vertically integrated agro-food company, while simultaneously pursuing geographical expansion. This strategic focus is integral to the Company’s growth as it continues to diversify and enhance its performance in all operational areas.
- The Middle East has seen impressive gains, with the Company’s revenues jumping by a remarkable 287% – from AED 740.2 million in 2022 to AED 2.8 billion in 2023.
- In Africa, the growth of the business remained strong, with revenues rising to AED 4.5 billion in 2023, from AED 4.2 billion in the previous year.
- Asia’s figures showed robust improvement, achieving a 43% increase in revenues – from AED 418.1 million in 2022 to AED 596.9 million in 2023.
Operational highlights
- Invictus Investment expanded its global footprint in 2023, by entering ten new markets, including Morocco,Tanzania, Mozambique, Turkey, Malawi, Burundi, Rwanda, Kenya, Uganda and Lebanon, and increasing its commodity transaction volumes in two markets added in 2022: Algeria and Egypt.
- The Company further diversified its portfolio by introducing several new commodities, including soya bean meal and seed, corn, vegetable oil, soya bean hulls, fertilisers, wheat flour and DDGS, effectively broadening its product offerings and enhancing market competitiveness.
- Invictus Investment continued to explore strategic investments, including significant acquisitions to bolster its supply chain and logistical capabilities – notably enhancing its in-house logistical operations and supplier-customer connectivity.
- Significant progress was made in the development and finalisation of the ESG framework, underscoring the Company’s commitment to sustainable business practices and aligning with global standards for social responsibility and environmental stewardship.
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