Agthia Group, a top food and beverage group in the UAE, has reported net profit of Dh52 million ($14.1 million) for the first quarter (Q1) of 2017, while net revenue grew 7 per cent from Q1 2016 to reach Dh521 million ($142 million).

The higher revenue was led by the Group’s flagship Water business and, in particular, the performance of recently acquired Delta Water in Saudi Arabia, which was incorporated within Agthia’s results for the first time.

Lower animal feed sales, utility tariff increases and a challenging macroeconomic climate moderated profitability despite a rigorous programme of internal cost optimisation.

Dhafer Ayed Al Ahbabi, chairman of Agthia, said: “Agthia continues to demonstrate that its 2020 strategy is effective in a challenging operating environment. While we anticipate headwinds to prevail throughout the year, the strength of brands within Agthia’s portfolio of consumer goods will continue to drive growth. On a personal note, I am honoured to be re-elected as Chairman and I look forward to continuing stewardship of this dynamic business as the journey to become the region’s leading food and beverage companies continues.”

Tariq Al Wahedi, acting chief executive officer of Agthia, said: “Led by our thriving Water business, and the growth of innovative products such as Al Ain ZERO, Agthia has had a strong start to 2017 posting healthy profits and a solid increase in revenue. Our organic growth in our consumer segment has been enhanced by the performance of the Delta Water business in Saudi Arabia, while our joint venture with Anderson Hay upholds our commitment to the UAE’s farming industry.”

The Group is pursuing a five-year strategy aimed at becoming one of the Middle East’s leading food and beverage companies. The cornerstone of this strategy is expanding the Agthia’s water business, led by the Al Ain and sodium-free Al Ain ZERO brands. The division has seen strong and fast-growing sales in 2017 and, to meet customer demand, Agthia launched a 5-Gallon Al Ain ZERO bottle size earlier this month to cater to the home and office market.

Agthia recently announced that it was entering a joint venture with US-based Anderson Hay & Grain, a top one hay exporter, and launched its first premium forage product under the Agrivita Marabe brand. This represents the latest addition to the Group’s animal feed portfolio which offers a full-service solution to livestock customers in the UAE. – TradeArabia News Service