UAE food giant says nine-month net profit rises by 26%

Agthia Group says improved performance was driven higher sales and improved margins
UAE food giant says nine-month net profit rises by 26%
(Photo for illustrative purposes only)
By Andy Sambidge
Fri 31 Oct 2014 10:32 AM

Agthia Group, one of the UAE’s biggest food and beverage companies, has announced that net profit for the first nine months of the year rose by 26 percent to AED151 million ($41.1 million).

The retail firm said the improved performance was driven higher sales and improved margins and by a resilient performance of both its Consumer and Agri Business divisions.

Net sales increased by 9 percent to AED1.2 billion for the first nine months of 2014 compared to the same period last year, a statement said.

Dhafer Ayed Al Ahbabi, chairman of Agthia Group said: "We have seen a strong performance of the group in this quarter and the business is well positioned to sustain strong performance in quarters to come, both through organic growth and by seizing opportunities that arise in the UAE and in other markets."

Iqbal Hamzah, CEO of Agthia, added: "Without doubt this period has further consolidated the strong year Agthia has had so far, with both the Consumer and Agri Business divisions continuing to perform well.

"We are addressing areas of underperformance and remain focused on driving the profitable growth of core businesses, while diversifying our product portfolio and widening our distribution reach."

The Agri Business division, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, recorded net sales of AED782.3 million in the period, up 9 percent on the same period in 2013.

Net profit for Agri Business was AED156.1 million, an increase of 19 percent year on year, resulting from higher volumes and improved margins.

The Consumer Business division, which produces and distributes products including Al Ain Mineral Water, Yoplait fresh dairy products and Capri-Sun juices, saw net sales of AED450 million in the first nine months of the year, an increase of 10 percent. Net profit also increased by 10 percent to AED40 million.

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