Agthia FY2013 net profit up by 28%

AGTHIA Group PJSC, one of the UAE’s leading food and beverage groups, has reported preliminary unaudited results achieving a net profit of AED 160 million ($43.5 million) for the full year 2013, an increase of 28% from the previous year, driven by strong sales and improved margins.

Net profit growth outpaced sales growth in 2013 due to improved gross profit margins in both the Agri Business Division and the Consumer Business Division resulting from an improved sales mix, competitive procurement, in-house production of previously outsourced feed volume, cost saving initiatives and higher flour pricing in the Northern Emirates.

Total net sales increased 14% year-on-year to Dhs1.51 billion, driven by higher volumes. The Consumer Business Division, which produces and distributes products including Al Ain Mineral Water, Yoplait fresh dairy products and Capri-Sun juices, delivered a 16% increase in sales, while the Agri Business Division, which manufactures and distributes Grand Mills flour and animal feed products, reported 13% sales growth.

During 2013, Agthia relaunched its Yoplait portfolio of products with newly designed packaging, new low fat fruit yogurts, and additional flavours that saw sales more than doubling during the year. The company launched its Alpin spring water in Turkey and in selective UAE outlets, with a full-fledged UAE launch planned for the first quarter of 2014.