Agthia Group records 32% rise in Q1 2014 net profit

RetailME Bureau

UAE-based Agthia Group has posted a 32% increase in net profit during the first quarter of 2014 compared to the year-earlier period. The company’s first quarter 2014 net sales rose by 8% percent to AED390.1 million, driving net profit to AED49 million.< /p>

Agthia Group’s agri-business division, which manufactures and distributes Grand Mills flour and Agrivita and animal feed products, recorded net sales of AED259.7 million in the first three months of 2014, up 11%. Net profit was AED58.8 million, an increase of 35% year-on-year, resulting from higher volumes and improved margins. The company added that its consumer business division, which produces and distributes products including Al Ain Mineral Water, Yoplait fresh dairy products and Capri-Sun juices, saw net sales of AED130.5 million in the first quarter, an increase of 3%. However, the net profit for the division decreased by 19% to AED7.6 million due to temporary marginal sales growth in bottled water owing to capacity constraints, an unfavourable channel mix of bottled water sales, a decline in Capri Sun volumes and higher overhead costs.

According to Agthia Group, these results were driven primarily by higher net sales and an overall improvement in margins. In this context, Agthia Group’s chairman Rashed Mubarak Al Hajeri, says, “The year has started off well, with firm sales and profit gains positioning Agthia for another strong year. We will continue to maximise the UAE’s growth potential, while also exploring growth opportunities in new geographies and introducing new products.” “Our balance sheet is strong and can support our expansion plans, and we expect 2014 to be another growth year for Agthia,” asserts Ilias Assimakopoulos, CEO of Agthia Group.