- Revenue rose year on year by 3.4% when compared to the same quarter last year
- Maintaining market leadership and financial resilience
ABU DHABI, May 1, 2019: Agthia Group PJSC, one of the UAE’s leading food and beverage groups, this morning reported Q1 2019 net profit of AED 40 million and a revenue of AED 508 million, representing revenue growth of 3.4 percent compared to the same period in 2018. Net profit was behind last year on account of lower subsidy-related income in Flour, and lower water pricing relative to last year’s first quarter against a backdrop of heavy promotional price reductions in home market. Excluding last year’s flour subsidy, net profit for this period will be higher in comparison to the same period last year.
HE Eng. Dhafer Ayed Al Ahbabi, Chairman of Agthia, said, “Our core businesses maintained their growth momentum in the first quarter despite persistent market challenges especially in the UAE. We continue to achieve this success not only through introduction of innovative new products but through successful diversification of our geographical penetration and product portfolio.”
The Group commenced 2019 with the launch of 5 new products in response to consumer demand for innovation, particularly in terms of providing healthier and more functional options. In Water, alongside Alpin Alkaline Water and Al Ain Bag-in-Box, Agthia has unveiled the region’s first zero-bromate-branded drinking water Al Ain Zero Bromate Water that is not only light on the kidneys of people of all ages but one of the best waters to consume during pregnancy.
In addition to various water products, the Group has also announced the launch of the region’s first vitamin D fortified flour ‘Grand Mills Vitamin D’, which follows in the footsteps of the previous year’s Al Ain Vitamin D Water, the world’s first and only vitamin D water containing no preservatives, colorants or flavors; and Yoplait lactose-free fruit yogurt that is low in calories and high in fiber, making it a healthy snack and ideal for lactose-intolerant people.
Tariq Ahmed Al Wahedi, Chief Executive Officer of Agthia, said, “Agthia continues to retain a leading market position in multiple sectors, crowned by our continuously growing market share in a heavily competitive UAE water market.” Al Wahedi added, “External factors such as latest tranche of subsidy rationalization affecting our Flour business are naturally slowing down our profit growth. However, our financial strength remains solidly in place to allow us to face these challenges head on, and to pursue our mission to become a regional leader in delivering the best quality, nutritious and responsibly produced products.”
The announcement of the Group’s first quarter results follows the conclusion of Agthia’s 14th Annual General Meeting held on March 28 in Abu Dhabi, at which Agthia shareholders approved a cash dividend of 15 percent for an amount of AED 90 million. Together with the Company’s 2018 Annual Report, Agthia has also started to report the Group’s Sustainability initiatives and application of ESG standards across its business operations.
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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, Kuwait, 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, Ice Crystal); Flour (Grand Mills); Animal Feed (Agrivita, Agrivita Marabe); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait). An Emerging Businesses unit includes tomato paste, frozen vegetables and baked goods among other food and non-food convenience products.
For more information: www.agthia.com | Hasna Alnoman | Agthia Group | Tel: 971 2 506 0600 | email@example.com |