- Revenues grew by two percent reaching AED 2.05 billion.
- Agthia’s consumer products portfolio, driven by Water, now constitutes 53 per cent of the Group revenues.
Abu Dhabi, UAE; 1 March 2018: Agthia Group PJSC, (‘Agthia’ or ‘the Group’), one of the UAE’s leading food and beverage companies, has reported consolidated financial results for the fiscal year that ended 31 December 2017. The Group reported a net profit of AED 206 million for 2017, with net revenue reaching AED 2.05 billion.
“Despite several external challenges, Agthia has managed to grow revenues and mitigate effects of reduced subsidies and slower consumer spending. We continued to create value for our shareholders in a difficult year, and the Group is on track to becoming one of the Middle East’s leading food and beverage companies.” commented HE Eng. Dhafer Ayed Al Ahbabi, Chairman of the Board of Directors of Agthia.
The Group’s total assets reached AED 2.94 billion, increasing 16 percent over last year. Revenue from the Water and Beverages category totalled AED 915 million, increasing 25 percent versus the previous year. Both bottled water and five-gallon water registered strong performance in the UAE while Delta Water in Saudi Arabia contributed AED 143 million in revenues. Al Ain Water, Group’s flagship brand, has now reached 28 percent volume share in the UAE, further increasing its lead versus the nearest competitor. Al Ain ZERO – the breakthrough no-sodium water – has reached almost 5 percent since its launch almost one and a half year ago.
In a market characterised by declining volume and value largely as a result of aggressive price reductions to maintain consumer base, Group’s Dairy segment’s revenues increased moderately by 1 percent.
Agthia’s Consumer products portfolio, driven by Water, now constitutes 53 per cent of the Group revenues, which used to be only 17 percent a decade ago.
Eng. Tariq Ahmed Al Wahedi, Chief Executive Officer of Agthia Group added, “Our Water business with its diverse consumer offering has been our primary growth driver. Combined with our access to Saudi market with Delta Water acquisition and our cost optimization efforts all through the year, this has helped compensate for unexpected market factors last year. Across all our markets and categories, we will continue to remain focused on our 2020 strategies.”
Agthia’s community support activities have reached a new milestone in 2017. In addition to increasing their product offering in Abu Dhabi and Al Ain municipality outlets, Agthia extended its government partnerships into the Ministry of Interior (Fazaa), Homat Al Watan, and the Sheikh Khalifa Bin Zayed Al Nahyan Foundation. As a result, members of these government organisations are able to purchase various products at discounted prices through Agthia’s food distribution centers in Al Wathba and in Um Al Ramool.
Revenues in the Agri business, comprising of Flour and Animal Feed, dropped by 13 percent, as both businesses have been adapting to the new post-subsidy market norms.
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, Saudi Arabia, 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. More than 4,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products: Water (Al Ain, Al Bayan, Alpin natural spring water, Delta, Bambini); Flour (Grand Mills); Animal Feed (Agrivita, Al Wasmi); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait). An Emerging Businesses unit includes tomato paste, frozen vegetables, fruit puree, and baked goods.
For more information: www.agthia.com | Ozgur Serin | Agthia Group | Tel: 971 2 506 0600 | firstname.lastname@example.org | Mazin El Nagib | FleishmanHillard | Tel: 971 55 268 1498| email@example.com