Agthia Group, one of the UAE’s leading food and beverage companies, has reported a net profit of Dh179 million ($48.7 million) for the first nine months of 2015, an increase of 19 per cent compared to the same period in 2014.
This performance was driven by a growth in sales of 12 per cent to Dh1.4 billion, as well as improved gross margins.
Dhafer Ayed Al Ahbabi, chairman of Agthia Group said: “Our performance over the last nine months shows that we are making strong progress on our strategy to become the market leader in our chosen categories and to deliver sustainable and profitable growth for our shareholders. The business remains on track to meet our expectations for the full year.”
Iqbal Hamzah, chief executive officer of Agthia, said: "This has been a solid nine months for the business. We have seen our core businesses continue to grow year-on-year, with water and beverages and flour categories in particular driving the results. The recent acquisition of Al Bayan water will further strengthen our leading position in the water category. Our business and financial position is strong and we have the right strategy in place to remain on our growth trajectory creating value to our shareholders.”
The agri business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, saw net sales reach Dh833 million for the nine months ending September 30, a 6 per cent increase compared with the same period last year.
Net profit rose 14 per cent year-on-year to Dh177 million, driven by a significant improvement in gross margin resulting from operational efficiencies and favourable commodity prices.
The consumer business, which produces and distributes consumer brands such as Al Ain Bottled Water, Alpin Natural Spring Water, Yoplait fresh dairy products and Capri Sun juices, recorded net sales of Dh544 million for the period, a solid 21 per cent growth year-on-year.
Net profit jumped 52 per cent to Dh61 million, driven by the strong performance of water and beverage category in addition to increased margins of Al Ain water resulting from lower PET usage and higher production efficiencies.
The food segment achieved net sales of Dh87 million, with dairy producing 13 per cent sales growth and improved gross margins as the result of executing a new strategy as well as lower milk powder prices.
Overall the food business loss declined versus last year. The company continues to work on building its frozen baked business in the UAE, a statement said.
Meanwhile, shipments to a leading international airline of Monty’s Bakehouse products are due to start in November.
The company’s Egypt business continued to grow, recording an 8 per cent increase in sales for the period. New customers are being acquired, and the business is expected to maintain its growth momentum for the rest of the year.
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