Dubai-based Unikai Foods will eliminate sugary drinks from its portfolio to concentrate on fruit-based beverages.

A report by chairman Mana Mohamed Saeed Al Mulla released with its 2020 financial results revealed the company was set to launch 100 percent fruit-based beverages in order to eliminate sugar-based products from its portfolio.

This followed a year in which revenues fell by 24 percent to AED 237 million ($64.5 million), but after cost-saving measures and reducing operational costs, net profit rose from AED 500,000 in 2019 to AED 3.6 million, said the report.

The UAE introduced a 50 percent tax on existing prices for all sweetened drinks, implemented in December 2019.

Unikai Foods PJSC, founded in 1977 in the UAE, and now listed on Dubai Financial Market (DFM), originally produced pasteurised dairy products and is now behind a range of beverage, dairy and food brands including Unikai, U Lemon, Areej, Delite and Mumtaz rice.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

 imogen.lillywhite@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021