Group gross profit margin increases to record-high 34.7 percent
Abu Dhabi, UAE - Agthia Group PJSC, one of the UAE’s leading food and beverages companies, reported a net profit of AED 159 million during the first nine months of 2018, representing a 9% like-for-like increase compared to the same period last year. The Group also reported AED 1.49 billion net revenues while gross profit margin reached a record-high 34.7 percent because of higher volume, better product mix and unwavering cost optimization across the Group.
The Company has recently started local production of Al Ain Water in Kuwait through their joint venture United Khaleeji Water Co. In addition to Al Ain regular water in sizes of 200, 330, 500, and 1500 ml, Agthia also offers Kuwaiti consumers its breakthrough Al Ain Zero no-sodium drinking water, Al Ain still and sparkling water in glass bottles, and Alpin Natural Spring Water exported from the UAE.
H.E. Eng. Dhafer Ayed Al Ahbabi, Agthia Chairman, said, “Agthia’s solid results once again underline the Group’s ability to evolve, adapt and thrive despite a highly challenging environment and an extremely competitive market. This is what sets Agthia apart and demonstrates our commitment to grow shareholder value and enhance consumer satisfaction.”
Tariq Ahmed Al Wahedi, Agthia Group CEO, said, “Higher sales volumes, enhanced category and product mix, and greater efficiencies have all contributed to Agthia’s strong third quarter profit performance. Agthia’s most profitable business, bottled water, demonstrated its ability to withstand the highly competitive market promotions while our 5-Gallon water displayed even stronger double-digit volume growth. Food category continued its remarkable top and bottom line growth, with net revenues increasing by 13 percent to reach AED 148 million.”
Al Wahedi added, “We maintain our positive outlook in delivering our profit targets for the year despite our top line remains under pressure against a backdrop of heavily promoted market and declining category sizes. Nevertheless, we will continue to innovate and enrich our portfolio to address the evolving needs of our consumers and customers and ultimately to support our profitable growth and expansion strategy.”
Agthia’s Agri Business, composed of Grand Mills Flour and Agrivita Animal Feed products, posted AED 670 million in net revenues in the period. The Company has been successfully adapting in the last two years to significantly reduced subsidies both in Flour and Animal Feed. Whereas Animal Feed business has stabilized and reclaimed back its earlier profitability levels, Flour business has additionally been affected by low-priced imported flour in the market. Notwithstanding, the Company’s brands maintain their market leadership positions both in Flour and Animal Feed.
The Company’s audited Financial Statements along with the Directors’ Report are available at the Company’s website www.agthia.com and at www.adx.ae.
Agthia Group is a leading Abu Dhabi based food and beverage company. Established in 2004, the Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “AGTHIA”. 51 percent of the Company’s shares are held by Senaat (General Holding Corporation), an Abu Dhabi Government entity, with the balance held by retail and institutional investors. The Company’s assets are located in the UAE, Saudi Arabia, Kuwait, Oman, Egypt and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East. More than 4,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products: Water (Al Ain, Al Bayan, Alpin Natural Spring Water, Delta, Bambini); Flour (Grand Mills); Animal Feed (Agrivita, Agrivita Marabea); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait); Processed Food (Al Ain Tomato Paste, Frozen Vegetable); Ambient and Frozen Bakery (Grand Mills). For more information: www.agthia.com | email@example.com | Tel: 971 2 506 0600.
© Press Release 2018