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Agthia Reports Record Half Year Results

94% Growth In Net Profit; 44% Increase In Sales

Agthia Group P.J.S.C., a leading Abu Dhabi based food and beverages group (ADX: Agthia), today reported its financial results for the first half of 2008. KEY HIGHLIGHTS: For the six months to June 2008, Sales grew to AED 385 million from AED 267 million, representing a growth of 44% over the same period last year Q2 sales alone reached AED 199 million, for a 47% increase versus 2007 First Half Net profit of AED 38 million, represents an increase of 94% compared to the same period last year Q2 net profit alone of AED 19 million is 86% up on the same period last year First Half gross profit margin increased to 20.7% versus 18.3% in 2007 Q2 gross profit margins of 18.9% versus 18.7% in 2007 Earnings per share improved to AED 0.126, reflecting a 97% growth versus 2007 year end. Commenting on the results, His Excellency Rashid Mubarak Al Hajeri, Chairman of Agthia, said, “We are exceptionally pleased with these strong results for Agthia in the first six months of 2008, especially given the current challenging environment in the global food and beverage industry. The results, both financially and operationally, are testament to the management team’s development and successful implementation of the company’s Financial and Strategic Turnaround initiatives.” Ilias Assimakopoulos, Chief Executive Officer of Agthia, added, “Our second quarter performance builds upon the momentum of the past few quarters across the business. We have seen solid growth in sales across segments, alongside improvements in margins that have resulted from a number of decisions that management has taken. The results for shareholders speak for themselves, and underline our commitment to profitably grow the business ahead of the industry average. Ultimately, we aim to become the best food and beverage company of the UAE from a financial, operational and brand perspective.” Consolidated Results Analysis Results were strong across the Businesses despite some very tough trading conditions, particularly the soaring grain prices in the global market. Revenue growth in each of Agthia’s operating companies grew significantly, with total sales in the first six months of AED 385 million, up from AED 267 million in the first six months of 2007 and representing an increase of 44%. After a strong first quarter, the trend continued into the second quarter, with sales reaching AED 199 million, up from AED 136 million in the same period in 2007. Significant increase in volume and pricing were the key Sales growth drivers. Growth in Net Profits was even stronger, with a 94% increase versus the first half of 2007. The increase in profitability was due to a number of factors, including higher volume, production efficiencies, pricing and efficient procurement of grains. Selling & distribution expenses increased due to strong volume growth resulting in higher distribution cost (volume related) and full impact of the new organization structure. The establishment of Greenfield tomato paste & frozen vegetable production facility in Egypt and the integration of “Capri Sun” juice business are progressing as per schedule with expected production and distribution commencement timing of Q4 2008 and Q1 2009 respectively. The integration of Al Ain Vegetable & Tomato Paste business acquired in January 2008 is expected to complete by third quarter this year and the initial financial results of this business are not included in the consolidated financials. Business Divisions Flour and Feed Feed & Flour sales of AED 321 million, represents a 43% increase over the same period last year, mainly attributable to higher sales volume and pricing. Despite the soaring grain prices, Gross Profit margin also improved from 13.7% to 16.6% as compared to the corresponding period last year due to favourable pricing impact, increased production volume and the procurement initiatives. Water Water business exceeded expectations by recording total sales of AED 64 Million, a growth of 50% over the first half of 2007. Water sales volume registered a strong growth versus last year resulting from distribution gains, particularly in the Modern Trade channel, enhanced product visibility and in-store displays and the strong performance of the 5 gallon Ice Crystal brand which has now been fully integrated within our Al Ain Water business. The company also recently launched a new line of nutrient enriched water for children, “Water Plus with Calcium and Fluoride”, which has been well received by the market.

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