Net sales for the nine months grew 12 percent to AED 1.4 billion
Net profit for the nine months reaches AED 179 million
Consumer Business up 52 percent, Agri Business profit up 14 percent
ABU DHABI, 29 October 2015
Agthia Group PJSC, one of the UAE's leading food and beverage companies, has reported a net profit of AED 179 million for the first nine months of 2015, an increase of 19 percent compared to the same period in 2014. This performance was driven by a growth in sales of 12 percent to AED 1.4 billion, as well as improved gross margins.
H.E. Eng Dhafer Ayed Al Ahbabi, Chairman of Agthia Group commented: "Our performance over the last nine months shows that we are making strong progress on our strategy to become the market leader in our chosen categories and to deliver sustainable and profitable growth for our shareholders. The business remains on track to meet our expectations for the full year."
Iqbal Hamzah, Chief Executive Officer of Agthia, added: "This has been a solid nine months for the business. We have seen our core businesses continue to grow year-on-year, with water and beverages and flour categories in particular driving the results. The recent acquisition of Al Bayan water will further strengthen our leading position in the water category. Our business and financial position is strong and we have the right strategy in place to remain on our growth trajectory creating value to our shareholders."
Agri Business
The Agri Business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, saw net sales reach AED 833 million for the nine months ending 30th September, a 6 percent increase compared with the same period last year. This was mainly due to aggressive distribution gains in flour. Net profit rose 14 percent year-on-year to AED 177 million, driven by a significant improvement in gross margin resulting from operational efficiencies and favorable commodity prices.
Grand Mills flour sales grew 9 percent in the period (16 percent including wheat trading), largely driven by the continued acquisition of new customers, distribution expansion in the UAE and exports.
Agrivita Feed sales volumes remained steady compared with the same period last year, due to a delay in the shipment of tender orders expected in the first half of the year. However, low commodity prices and a favourable product mix produced a 7 percent growth in net profit against the same period last year. The company continues to increase the number of strategic outlets and implementing initiatives to boost sales.
Consumer Business
The Consumer Business, which produces and distributes consumer brands such as Al Ain Bottled Water, Alpin Natural Spring Water, Yoplait fresh dairy products and Capri Sun juices, recorded net sales of AED 544 million for the period, a solid 21 percent growth year-on-year. Net profit jumped 52 percent to AED 61 million, driven by the strong performance of water and beverage category in addition to increased margins of Al Ain water resulting from lower PET usage and higher production efficiencies.
Net sales for Water & Beverages during the period reached AED 457 million, 24 percent ahead of the same period last year. This was supported by distribution gains and increased visibility across the trade.
Alpin natural spring water sales in Turkey are beginning to gain momentum, while also growing market share in the UAE, with shipments increasing more than double during the period.
Capri Sun's business performance continued to show a good recovery with sales up 12 percent to AED 53 million versus last year. The turnaround has been achieved through improved merchandising, the launch of new flavours and increased marketing activities.
The food segment achieved net sales of AED 87 million, with dairy producing 13 percent sales growth and improved gross margins as the result of executing a new strategy as well as lower milk powder prices.
Overall the food business loss declined versus last year. The company continues to work on building its Frozen Baked business in the UAE. Meanwhile, shipments to a leading international airline of Monty's Bakehouse products are due to start in November.
The Company's Egypt business continued to grow, recording an 8 percent increase in sales for the period. New customers are being acquired, and the business is expected to maintain its growth momentum for the rest of the year.
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About Agthia
Agthia Group is a leading Abu Dhabi based food and beverage company established in 2004.
The Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol "AGTHIA". 51 percent of the Company's shares are held by Senaat (General Holding Corporation), an Abu Dhabi Government entity, with the balance held by retail and institutional investors.
The Company's assets are located in the UAE, Oman, Egypt and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East.
Agthia employs over 2,900 employees and has two business divisions in various food and beverage segments:
• Agri Business: UAE - manufacturing, distribution and marketing of Grand Mills, the leading high quality flour, and Agrivita, leading animal feed products;
• Consumer Business: UAE - manufacturing, distribution and marketing of several brands including Al Ain water; Al Bayan water; Capri-Sun juices; Yoplait fresh dairy products. Oman: Al Bayan water; Egypt - Al Ain tomato and chilli paste, and fruit puree. Turkey - Alpin, natural spring bottled water.
For more information, please visit www.agthia.com or contact:
Ozgur Serin
Agthia Group
Tel: 971 2 506 0600
Email: ir@agthia.com
Sheena Shah
Brunswick Group
Tel: 971 2 234 4606
Email: AGTHIA@brunswickgroup.com
© Press Release 2015
