Wednesday 30 November 2022

Agthia ... net sales improved 11 per cent.

Agthia H1 net profit increases 20pc to $34m

ABU DHABI, July 30, 2015

Agthia Group, a top UAE-based F&B company, reported that its net profit for the first half of 2015 increased 20 per cent from the same period in 2014 to Dh125 million ($34 million), driven by higher sales and improved margins.

Net sales for the period grew 11 per cent to Dh911 million.

Dhafer Ayed Al Ahbabi, chairman of Agthia Group said: “Our second quarter performance builds on the strong start we had in the first three months of 2015, delivering a promising first half of the year in line with our full-year outlook. These results underline our commitment and ability to deliver sustainable, profitable growth for our shareholders by becoming market leaders in our chosen categories and pursuing aggressive distribution and product portfolio expansion.”

Iqbal Hamzah, chief executive officer of Agthia, said: "Agthia's core businesses continue to grow year-on-year, with the water and beverages segment leading the way. Robust double-digit growth in profit and sales is a reflection of the successful implementation of our strategy, underpinning the trust that our customers and consumers have in our products and keeping us on track to achieve our ambitious targets."

Agri Business

The Agri Business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, saw net sales reach Dh560 million for the first half of 2015, delivering a 5 percent increase from the same period last year. Net profit surged 12 percent year-on-year to Dh 127 million, driven by an improvement in gross margins for feed resulting from competitive grain sourcing and favourable volume mix, and distribution gains for flour.

Consumer business

The Consumer Business, which produces and distributes consumer brands including Al Ain Bottled Water, Alpin Natural Spring Water, Yoplait fresh dairy products and Capri Sun juices, recorded net sales of Dh351 million for the period, a 21 percent growth year-on-year. Net profit jumped 60 percent to Dh35 million, driven by a strong performance in the unit’s water and beverage segment.

Distribution gains of Al Ain bottled water, following the installation of the high-speed bottling line last year that expanded capacity by 60 percent, combined with increased margins resulting from lower PET usage and cost and production efficiency, helped drive sales and profits in the division.

Capri Sun business performance continued to show good recovery with sales of Dh37 million, up 10 percent versus last year. The turnaround has been achieved via the introduction of new flavours, continued brand marketing support through consumer promotions, and active digital and social media. A price increase in retail trade was successfully implemented in April.

The food segment achieved net sales of Dh 54 million during the first half of the year. The dairy business gross margin improved significantly, as the Group rationalized plain yoghurt and launched the premium and margin-enhancing “Yoplait DELIGHT” indulgent dessert.

The frozen vegetable range saw sales rise 9 percent from the same period a year ago as price increases across the retail and private label portfolio were implemented. Meanwhile, the Frozen Baked category saw continued production development and customer acquisition is in progress.

Following an agreement signed at the beginning of the year with UK-based Monty’s Bakehouse, we have secured our first contract to manufacture Monty’s products for a leading airline with shipments expected to commence in the third quarter.

The Egyptian business grew by 2 percent for the period. B2C sales in Egypt will recommence in Q3 2015 following the appointment of a network of sub-distributors in Cairo and the Delta Region. – Reuters

Tags: profit | Agthia | bottled water | F&B |

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