Agthia achieves 12% increase in net sales

Agthia Group on Sunday released the Company’s financial results for first quarter ended March 31. Agthia delivered a strong volume, sales and profit growth in the first three months of 2012, achieving a 12 per cent increase in net sales year on year, reaching Dhs311 million and a strong profit growth of 21 per cent at Dhs27 million. Among the highlights of the first quarter of 2012, Agthia’s Consumer Business Division achieved net sales growth of 17 per cent year on year while the Agri Business Division grew by 10 per cent. The newly launched Yoplait fresh dairy products and Chiquita natural juices are progressing well; priority remains to drive distribution penetration across all retail segments while building strong in store presence and visibility. The response to the range of newly launched Al Ain fresh juices continues to be encouraging and the company is adding new customers. The Company completed the 100 per cent share acquisition of the Turkey based spring water company in March 2012. Plans are underway to revamp the brand, expand regional distribution in Turkey and launch the ‘natural spring’ drinking water in the UAE and wider GCC. Furthermore, the poultry feed production capacity expansion is on schedule for completion in Q4, 2012, while the frozen baked product launch is planned for Q2, 2013. Commenting on the results, Rashed Mubarak Al Hajeri, Chairman of Agthia Group said, “We are pleased with Agthia’s overall performance across all divisions in the first quarter of 2012. The volatility in the commodity market and the regional unrest pose as challenges, however the Company is progressing in line with its long term strategy. We remain optimistic and expect another year of good performance in 2012.” Ilias Assimakopoulos, Chief Executive Officer of Agthia, added, “We continue to focus on growth opportunities by consolidating the newly introduced products, driving the core business, expanding geographically, while addressing the challenge of higher input costs by pursuing cost savings initiatives. We look forward to the opportunities that will arise with the newly acquired spring water company. We expect 2012 to be another stepping stone year leading us to Agthia’s ambition of becoming the UAE’s leading food and beverage group.” In the first three months of 2012, net sales grew strongly by 12 per cent year on year reaching Dhs311 million. This performance is attributable to 17 per cent sales growth delivered by the Consumer Business Division and 10 per cent growth achieved by the Agri Business Division.