Tuesday, Feb 26, 2013
Abu Dhabi: Food and beverages group Agthia Group on Tuesday reported a net profit of Dh125 million — up by 44.5 per cent compared to the same period in 2011.
Strong profit growth was largely driven by 4.5 percentage point improvement in gross profit margin resulting mainly from competitive procurement of grains, cost saving initiatives, production capacity increases of flour and feed mills displacing outsourcing and price increases.
Net sales for 2012 grew by 16 per cent to reach Dh1.33 billion. The company’s board has recommended a cash dividend of 5 per cent.
Agthia’s Agri Business Division, that manages, manufactures, distributes and markets Grand Mills, the leading high-quality flour and animal feed products in the UAE, recorded net sales of Dh853.5 million for the year recording a growth of 11 per cent compared to same period last year, mainly driven by volume growth.
Agthia’s Consumer Business Division, that manages, manufactures, distributes and markets several well-known consumer brands including Al Ain Mineral Water, in the UAE; Capri-Sun juices; Al Ain tomato paste and frozen vegetables products; Chiquita juices; and Yoplait dairy products, achieved a net sale of Dh473 million — a solid 26 per cent growth year on year.
In Turkey, rebranding of the recently acquired spring water company has been finalized and is ready for launch in Q1 2013, under the new brand “Alpin”. Plans are underway to expand regional distribution in Turkey and launch “Alpin” natural spring drinking water in the UAE during the second half of 2013.
The company’s new initiative of frozen baked product launch is on track for launch in the last quarter of 2013, while various production capacity expansion projects have been undertaken to meet mid-term demand including: poultry feed production capacity expansion to be completed by April 2013; flour milling capacity increase by Q1, 2014; new high speed bottling line commissioning in Q2, 2014; and 5 and 10 litres new bottling lines in Turkey set for completion in Q2, 2013.
“In 2012 we have successfully sustained core business growth performance and have put in place a clear strategy focused on: improving the performance of recently launched products and that of the Egyptian operation, geographical expansion, incremental brand building investments, enhancing manufacturing capabilities, as well as further operating & cost efficiency improvements. Furthermore, Agthia has maintained a healthy balance sheet and is thus well positioned for another year of business growth in 2013,” said Rashed Mubarak Al Hajeri, Chairman of Agthia Group.
Staff Report
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