The Agthia Group today reported preliminary unaudited results for the full year 2014. Net profit increased 22 percent from the previous year to AED193.3 million, while net sales grew 9 percent to AED1.66 billion.
The significant growth in profit was driven by higher sales and strong margin improvements. Gross profit margins rose 90 basis points to 28 percent, reflecting an aggressive focus on the competitive sourcing of grains, ongoing cost saving initiatives, in-house production of previously outsourced animal feed and stable flour pricing in the Northern Emirates.
On the occasion, Chairman of Agthia Group, Dhafer Ayed Al Ahbabi, said, “2014 has been another strong year for Agthia, with new products launches, the installation of a new water bottling line, the commencement of production of frozen baked goods, and our mega-distribution centre becoming fully operational. We are well placed to further grow our business by expanding our product portfolio and distribution reach going forward.” Iqbal Hamzah, Chief Executive Officer of Agthia, said, “We achieved many milestones in 2014, including consolidating our leadership position in our key product categories. We have built a solid platform to accelerate the development of our business, and I am confident that 2015 will be another successful year for the company.” The Agri Business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, both market leaders in their respective categories, recorded net profit of AED201 million, an increase of 17 percent year-on-year. Sales rose 8 percent from 2013 to AED1.04 billion, driven particularly by animal feed products as government initiatives to promote food security encouraged domestic food production, creating favourable conditions for the segment.
The Consumer Business, which produces and distributes consumer brands including Al Ain Bottled Water, Alpin Natural Spring Water, Yoplait fresh dairy products and Capri-Sun juices, recorded net profit of AED57.3 million, 10 percent higher than 2013. Sales increased by 12 percent over the previous year to AED616.6 million, primarily driven by the water segment, and specifically the accelerated recovery of volumes in the second half of the year following the installation of the new high-speed bottling line.
Source : WAM News Agency for United Arab Emirates
