Agthia Group, a leading food and beverage manufacturer, on Monday said its net sales grew 17 per cent year-on-year to Dh559 million in the first six months of 2011 ending 30 June.
The company said the growth was driven by consistent strong performance in the water and beverages business which delivered 26 per cent sales growth year on year; and a significant 14 per cent year on year growth in flour and animal feed business.
Water and beverages segment achieved sales growth of 26 per cent to record Dh155 million, while the flour and animal feed segment grew 14 per cent year on year to achieve Dh376 million.
Agthia's net profit for the first six months at Dh40 million reflects a drop of 25 per cent versus the same period last year.
This drop is mainly attributed to two factors (a) the continued increase in input cost of raw materials (grains and PET) and (b) during the same period last year company's flour business benefited from a decline in wheat prices which outpaced the drop in the market selling price of flour resulting in higher one off profit margin, according to the company's press release.
"We are pleased with Agthia's sales and volume growth momentum during the first half of the year. The rising input cost is a challenge; however, the Company is progressing well in line with its long term strategy to deliver business growth along with expansions into new categories," chairman of Agthia Group Rashed Mubarak Al Hajeri commented.