WAM ABU DHABI, 23rd January, 2014 (WAM) — Agthia Group PJSC, one of the U.A.E.’s largest food and beverage groups, has reported preliminary unaudited results achieving a net profit of AED 160 million for the full year 2013, an increase of 28 percent 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, according to a press release from the company.
Total net sales increased 14 percent year-on-year to AED 1.51 billion, driven by higher volumes. The Consumer Business Division delivered a 16 percent increase in sales, while the Agri-Business Division reported 13 percent sales growth.
The company launched its Alpin spring water in Turkey and in selective U.A.E. outlets, with a full-fledged U.A.E. launch planned for the first quarter of 2014.
Agthia also signed a distribution agreement for the Monster range of beverages, and launched whole-wheat flour products.