By Andy Sambidge
Food retailer says profit growth outpaced sales growth, driving by improved margins last year
One of the UAE’s biggest food and beverage groups has posted a 28 percent increase in full-year net profit for 2013.
Agthia Group said its preliminary unaudited results showed a net profit of AED160 million, driven by strong sales and improved margins.
Net profit growth outpaced sales growth in 2013 due to improved gross profit margins in both the agri business division and the consumer business division, the company said in a statement.
Total net sales increased 14 percent year-on-year to AED1.51 billion, driven by higher volumes, it added.
The consumer business division, which produces and distributes products including Al Ain Mineral Water, Yoplait fresh dairy products and Capri-Sun juices, delivered a 16 percent increase in sales, while the agri business division, which manufactures and distributes Grand Mills flour and animal feed products, reported 13 percent sales growth.
During 2013, Agthia relaunched its Yoplait portfolio of products with newly designed packaging, new low fat fruit yogurts, and additional flavours that saw sales more than doubling during the year, the statement said.
The company also launched its Alpin spring water in Turkey and in selective UAE outlets, with a full-fledged UAE launch planned in the first quarter of this year.
Agthia, employs around 2,000 employees, said it also signed a distribution agreement for the Monster range of beverages, and launched Chakki Atta (whole wheat flour) products.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.