UAE food giant Agthia sales soar 16pc to $362m
Abu Dhabi, March 2, 2013
Agthia Group, one of UAE’s leading food and beverage groups, has registered solid growth in its net sales for 2012 which grew by 16 per cent to reach Dh1.33 billion ($362 million) compared to Dh1.14 billion a year ago.
Announcing the 2012 results, Agthia said its net profit surged 44.5 per cent growth year on year to reached Dh125 million, thus recording a robust performance as reflected by the strong sales and profit growth.
Impressed by the results, the company's board has recommended a cash dividend of 5 per cent for its shareholders, said a statement from the company.
Agthia’s agri business division, that manages, manufactures, distributes and markets Grand Mills, the leading flour and animal feed products in the UAE, recorded net sales of Dh853.5 million for the year, reflecting a strong growth of 11 per cent compared to same period last year, mainly driven by volume growth, it stated.
Agthia's consumer business division, that manages, manufactures, distributes and markets several well-known consumer brands including Al Ain Mineral Water, a leading bottled drinking water in the UAE; Capri-Sun juices; Al Ain tomato paste and frozen vegetables products; Chiquita juices; and Yoplait dairy products, achieved a net sale of Dh473 million, up 26 per cent over the same period the previous year.
Beyond organic core business growth, consolidation of the recently introduced products-Yoplait fresh dairy products & Chiquita natural juices– has also been a strategic focus for the company during the year along with building strong in-store presence and visibility by driving distribution and penetration across all the retail segments, the UAE company said.
Volumes have been growing progressively, and further market mix improvements and other initiatives are being implemented to accelerate this volume growth, it stated.
The top Emirati food group said it has finalized the rebranding of the recently-acquired spring water company in Turkey and was readying for its launch in the first quarter of 2013, under the new brand “Alpin”.
Plans are underway to expand regional distribution in Turkey and launch “Alpin” natural spring drinking water in the UAE during the second half of 2013, said the company in its statement.
Agthia Group said the new initiative of frozen baked product launch was on track for launch in the last quarter of 2013, while various production capacity expansion projects have been undertaken to meet mid-term demand.
These include poultry feed production capacity expansion to be completed by April 2013; flour milling capacity increase by Q1,2014; new high speed bottling line commissioning in Q2, 2014; and five & ten liters new bottling lines in Turkey set for completion in Q2, 2013, it added.
Commenting on the results, chairman Rashed Mubarak Al Hajeri said, “We are very pleased with ourstrong overall performance in 2012 and are pleased to be recommending 5 per cent cash dividend to our shareholders who have placed their confidence on us. We are optimistic going into 2013, despite the regional economic challenges andcontinued volatility in the commodity market; we expect another year of good business performance and growth.”
Agthia CEO Ilias Assimakopoulos said, "In 2012 we have successfully sustained core business growth performance and have put in place a clear strategy focused on improving the performance of recently-launched products and that of the Egyptian operation, geographical expansion, incremental brand building investments, enhancing manufacturing capabilities,as well as further operating & cost efficiency improvements."
On its future outlook, Assimakopoulos said, "Although regional economic uncertainty and the commodity market volatility suggest challenges, the company’s strong balance sheet along with sustained core business performance, clear strategy focusing on improving the performance of recently-launched products and that of the Egyptian operation, geographical expansion, incremental brand building investment, manufacturing capabilities enhancements as well as further operating and cost efficiency improvements provide us with reason to remain optimistic on the Company’s prospects for future revenue and profit growth."
"Agthia has maintained a healthy balance sheet and is thus well positioned for another year of business growth in 2013," he added.-TradeArabia News Service
More Miscellaneous Stories
- UAE road accidents decline by 23.5pc
- Top businesswomen in Bahrain honoured
- Death penalty sought for Bahrain terrorists
- Girl, 9, dies after fall from 8th floor in Abu Dhabi
- Lebanese café brand opens Dubai outlet
- Bahrain poultry firm told to step up safety
- Customer dies in Bahrain cafe brawl
- Bahraini boys hurt while planting bombs
- Philips, Ericsson launch LED street lighting
- DuBiotech to set up first Halal safety lab
- Jotun to supply coatings for Makkah Station
- Raytheon wins $655m Kuwait Patriot deal
- Alwaleed Foundation lights up 3 Saudi villages
- Poultry farms strike may trigger shortages in Bahrain
- Oman seals Victoria food security pact
- Saudi woman, 80, donates $133m to charity
- New Saudi clamp on energy drinks
- Outrage follows Bahrain killer bomb
- Improvised explosive device used in Bahrain attack
- 3 policemen killed in Bahrain blast
- Dammam-Al Ahsa train service starts
- Egypt wheat supplies enough to last until June
- Expat killed at Saudi workers' holding facility
- 80 global speakers for Doha summit on family
- Restaurant runs up $47,555 phone bill in 4 days
- NZ minister to visit Gulf states
- Public-private tie-ups ‘vital for agri growth’
- China firm wins solar power project in Amman
- 15,000 attend Bahrain garden show
- Omani firms shine at top food expo