Thirsty UAE consumers help push Agthia Group’s net profits up 28 per cent
Strong sales and improved margins helped profits at Abu Dhabi-based food and beverage firm Agthia Group rise by 28 per cent in 2013 to Dh160 million, the company said in a media statement today.
Agthia, which is best known for its Al Ain brand of bottled water, said 2013 net sales increased 14 per cent year-on-year to Dh1.51 billion, driven by higher volumes.
Net profit growth outpaced sales growth in 2013 due to improved gross profit margins in both the Agri Business Division and the Consumer Business Division resulting from an improved sales mix, competitive procurement, in-house production of previously outsourced feed volume, cost saving initiatives and higher flour pricing in the Northern Emirates, the firm noted.
The Consumer Business Division, which produces and distributes products including Al Ain Mineral Water, Yoplait fresh dairy products and Capri-Sun juices, delivered a 16 per cent increase in sales, while the Agri Business Division, which manufactures and distributes Grand Mills flour and animal feed products, reported 13 per cent sales growth.
During 2013, Agthia relaunched its Yoplait portfolio of products with newly designed packaging, new low fat fruit yogurts, and additional flavours that saw sales more than doubling during the year. The company launched its Alpin spring water in Turkey and in selective UAE outlets, with a full-fledged UAE launch planned for the first quarter of 2014.
Agthia also signed a distribution agreement for the Monster range of beverages, and launched Chakki Atta (whole wheat flour) products.
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