UAE food giant says 2014 net profit soars by 22%

Agthia Group says it made more than $52m full-year net profit while sales grew by 9%
UAE food giant says 2014 net profit soars by 22%
(Photo for illustrative purposes only)
By Andy Sambidge
Sun 08 Feb 2015 02:09 PM

Agthia Group, one of the UAE’s biggest food and beverage companies, on Sunday reported that its full-year net profit increased 22 percent in 2014 to AED193.3 million ($52.6 million).

The company also said in a statement that net sales grew nine percent to AED1.66 billion during 2014.

The significant growth in profit was driven by higher sales and strong margin improvements, Agthia said, adding that gross profit margins rose to 28 percent, following an aggressive focus on the competitive sourcing of grains, ongoing cost saving initiatives, in-house production of previously outsourced animal feed and stable flour pricing in the Northern Emirates.

Dhafer Ayed Al Ahbabi, chairman of Agthia Group said: "2014 has been another strong year for Agthia, with new products launches, the installation of a new water bottling line, the commencement of production of frozen baked goods, and our mega distribution centre becoming fully operational.

"We are well placed to further grow our business by expanding our product portfolio and distribution reach going forward."

Iqbal Hamzah, CEO of Agthia, added: "We have built a solid platform to accelerate the development of our business, and I am confident that 2015 will be another successful year for the company."

Agthia Group's assets are located in the UAE, Egypt and Turkey, employs around 2,000 staff and is active in markets across the UAE, GCC, Turkey and the wider Middle East.

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