Agthia net profit rises 104pc
Abu Dhabi, April 26, 2008
Agthia - Emirates Foodstuff and Mineral Water Company – has reported an increase of 104 per cent in net profit in the first quarter this year.
Building on the success of last years’ financial performance, Agthia, the parent company of Grand Mills for Flour & Feed, Al Ain Mineral Water and Al Ain Vegetable Processing & Canning Factory, continues to make progress with net revenue growth of 41 per cent compared to the same period last year, the company said in a statement.
Higher volume and pricing drove the sales growth, while strong profit growth resulted from a combination of higher volume, pricing, strategic procurement and cost saving initiatives, it added.
The combined Flour & Feed sales registered 39 per cent growth to Dh158 million over the corresponding 2007 period.
Despite a significant hike in grain prices, gross profit margin improved by 490 basis points reaching 19.6 per cent, mainly resulting from efficient procurement of grains and manufacturing efficiencies.
Al Ain Water continued to strengthen its strong footing with sales growing at 55 per cent. Ice Crystal, a five gallon water business acquired in December 2007 has now been fully integrated within Al Ain Water.
“The first part of our ‘Financial Turnaround’ strategy is delivering impressive results, whilst execution of the second part of our plan for ‘Strategic Turnaround’ is in progress.
The Company is committed to providing better products and solutions to our consumers and customers, to reducing the cost of doing business and to providing the highest standard of service,” said Agthia chief executive officer Ilias Assimakopoulos.
“We are focused on achieving sales and profit growth both in the short and long term. We are committed to delivering strong results by focusing on strategy, execution excellence, intelligent risk taking and successful teamwork. Ultimately these will drive growth in both sales and profit”, added Agthia chairman Rashid Al Hajeri. – TradeArabia News Service