Apr 30 2012 |
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Agthia bullish on growth as new products help boost profit by 21%
Monday, Apr 30, 2012
Gulf News
Abu Dhabi Agthia Group , one of the UAE’s leading food and beverage groups, achieved a 21 per cent growth in net profit to Dh27 million in the first quarter.
The company reported a 12 per cent increase in net sales year on year to Dh311 million.
Agthia’s Consumer Business Division achieved net sales growth of 17 per cent year on year while the Agri Business Division grew by 10 per cent.
“The response to the range of newly launched Al Ain fresh juices continues to be encouraging and the company is adding new customers.”
Furthermore, the poultry feed production capacity expansion is on schedule for completion in the fourth quarter this year.
Rashed Mubarak Al Hajeri, Chairman of Agthia Group said, “The volatility in the commodity market and the regional unrest pose as challenges, however the company is progressing in line with its long-term strategy. We remain optimistic and expect another year of good performance in 2012.”
The water and beverages segment net sales grew by 14 per cent year on year to Dh81 million, while net profit grew by 14 per cent, in line with the sales growth.
Numan Ashour, a UAE-based economist, told Gulf News that Agthia’s profit growth could be attributed to many reasons.
“In the coming two to five years the UAE will reduce dependence on food imports by 28 per cent,” he said.
“The main reason is that the consumption is increasing due to the increase in population and tourists. For example, Dubai’s population has increased by 17 per cent since early 2011 which led to increase in demand on other sectors including food and agriculture,” Ashour said.
By Shehab Al Makahleh ?Staff Reporter
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