UAE food gaint profit down 25pc
Abu Dhabi, March 31, 2012
Agthia Group, one of the UAE’s leading food and beverage companies, said its net profit for 2011 fell 25 per cent to Dh86 million ($23.4 million) compared to the year before mainly due to the higher soft commodity and PET prices.
Announcing the results, Agthia said the group's net sales for the year ended December 31 surged to hit Dh1.14 billion with a strong 14 per cent year on year growth.
The Emirati firm said over the last five years, it had achieved an impressive CAGR of 21.4 per cent in sales revenue and 24.3 per cent in net profits.
The results highlight the strong performance of consumer business division (CBD) recording a solid 18 per cent net sales growth year on year at Dh376.9 million and Agri Business Division (ABD), which manages the Flour & Animal Feed business, delivering a 12 per cent net sales growth reaching Dh767.4 million.
The year also saw the launch of fresh dairy products under the “Yoplait” brand, long shelf life 100 per cent natural fruit juice under the “Chiquita” brand, and fresh fruit juices under the “Al Ain Fresh” brand.
In December 2011, Agthia announced the acquisition of Pelit Su, the Turkey-based natural spring water bottling plant with direct access to a natural spring water source.
Commenting on the results, chairman Rashed Mubarak Al Hajeri said, 'We are very satisfied with our performance for the year in light of the challenging environment for food & beverage manufacturers which, among others, has been characterized by increasing input costs and regional unrest.'
'Nevertheless, business fundamentals remain strong as evident by the strong sales and volume growth across all categories during 2011 and this performance is consistent with our long term growth model,' he added.
According to him, a cash dividend of 5 per cent has been recommended by the board of directors.
Group CEO Ilias Assimakopoulos said, 'Our investments remained focused on growth opportunities, while we continued addressing the challenge of higher input costs by pursuing cost savings initiatives, pricing opportunities, and by accelerating entry into new categories.'
'We view such entries into new segments as strategic growth drivers and will contribute to Agthia’s ambition of becoming the UAE’s leading food and beverage group,' he added.-TradeArabia News Service
More Travel, Tourism & Hospitality Stories
- Malaysia Airlines jet presumed crashed, 239 onboard
- BA rolls out special Mother's Day fares
- Etihad says majority of stranded passengers sent home
- Malaysian jet search team spots 'column of smoke'
- Turkish Airlines revenue surges 27pc in 2013
- Malaysian flight 'presumed crashed' over China
- Qatar Airways likely to buy more A380s
- Malaysia Airlines jet goes missing over China
- Etihad in move to clear flights backlog
- Tourism industry emerges from downturn
- Airbus orders more frequent A380 checks
- Dubai Mall stand offers air safety tips
- Elaf Group plans new hotel in Makkah
- UPDATE: Abu Dhabi airport starts operation
- Qatar Airways mulls options on 3 extra A380s
- RAK features 9 travel firms at ITB Berlin
- Etihad names Patrick Vieira guest ambassador
- Lufthansa to offer Premium Economy Class
- Ras Al Khaimah TDA appoints new CEO
- Abu Dhabi flights hit by 'technical failure'
- Egypt urges Germany to ease travel advisory
- Qatar Airways to get 3 A380s in June
- Paramount eyes expansion in region
- All EU citizens exempt from pre-entry UAE visas
- Sofitel to open in Downtown Dubai
- Women’s role in aviation focus for summit
- Turkish, Singapore Airlines expand codeshare
- Global air passenger traffic up 7.8pc in Jan
- Hilton to open 41-storey hotel in Pearl-Qatar
- Graffiti area at the Great Wall