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Sat 2 May 2015 01:09 AM

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UAE food giant says Q1 net profit rises by 22%

Agthia Group says performance is driven by higher sales, improved margins and controlled overheads

UAE food giant says Q1 net profit rises by 22%
(Photo for illustrative purposes only)

Agthia Group, one of the UAE’s biggest food and beverage companies, has reported that its net profit increased 22 percent in the first quarter of 2015 to AED59.2 million ($16.1 million).

The company also said in a statement that net sales grew 11 percent to AED434.9 million in the quarter compared to the same period last year.

The growth in profit was driven by driven by higher sales, improved margins and controlled overheads, Agthia said.

Dhafer Ayed Al Ahbabi, chairman of Agthia Group, said: "Agthia has made a strong start to the year. We continue to progress with our strategy of driving growth across all core categories, improving profitability, diversifying and launching new products, expanding distribution reach, strengthening brand support and, at the same time, addressing underperforming businesses."

Iqbal Hamzah, CEO of Agthia, added: "The business has performed strongly in this first quarter, paving the way for another year of growth for Agthia.

"We have made good progress delivering on our primary objectives, such as growing revenues, driving profitability and improving the performance of Capri Sun and our dairy category.

"With robust business fundamentals in place, and strong execution of our strategy, we aim to deliver encouraging returns to our shareholders."

The company's agri business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, saw net profit for the first quarter increase 12 percent year-on-year to AED 65.9 million.

Its consumer business, which produces and distributes consumer brands including Al Ain Bottled Water, Alpin Natural Spring Water, Yoplait fresh dairy products and Capri Sun juices, recorded a net profit of AED10 million for the quarter, a 32 percent increase.

The company said that to meet current and expected demand for bottled water, it is adding a second high speed bottling line, which will be ready by mid-2016, increasing the existing capacity by about 40 percent, and expanding its distribution centres in Abu Dhabi and Dubai.

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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