Dubai Refreshment posts Dh42.3M profit for 2018

We ended the year significantly better than we expected back in January 2018

Ahmad bin Eisa Alserkal, Chairman, Dubai Refreshment Co

dubai — Dubai Refreshment Co. net profit for 2018 plunged nearly 54 per cent to Dh42.3 million as compared to Dh91.7 million in the previous year due to decline in sales after the introduction of new taxes in the UAE. Its earnings per share also fell from Dh0.97 to Dh0.43. While total assets declined from Dh12.3 billion in 2017 to Dh11.45 billion in 2018.

The company saw a decline in volumes and net revenues in both local and exports markets last year. It achieved total revenues of Dh646 million, a decline of 26 per cent when compared to previous year. “While over the short to medium term this change will impact our revenues and profits, we believe that we have the plans to weather the change and to come out even stronger and more diversified over the longer term,” said Ahmad bin Eisa Alserkal, chairman, Dubai Refreshment Co.

“The company was forced to pass these taxes to the consumer, which in turn led to much higher consumer prices,” Alserkal said in a statement posted on Dubai bourse. “This situation was especially difficult in the first few months after the excise tax implementation. However, through sales improvement and cost reduction, the company has been able to stabilise the situation and return to reasonable profitability. We ended the year significantly better than we expected back in January 2018,” the chairman said in the statement.

Alserkal revealed that the company will aggressively pursue expansion in other drinks categories which are not subject to taxation.