Agthia posts Dh50m profit due to better product mix

Abu Dhabi-based firm is actively looking at acquisitions, CEO says

Agthia Group, the Abu Dhabi based food and beverages company, yesterday reported a 6 per cent increase in net profit for the third quarter of 2018, due to higher sales volumes and greater efficiencies.

Third quarter profit this year reached Dh50 million, compared to a profit of Dh47 million during the same period last year.

Revenues of the Abu Dhabi bourse-listed firm touched Dh476.8 million in 2018’s third quarter, compared to Dh498.9 million in 2017’s third quarter. “Higher sales volumes, enhanced category and product mix, and greater efficiencies have all contributed to Agthia’s strong third quarter profit performance,” Tariq Ahmad Al Wahedi, Agthia Group CEO, said in a statement.

“Agthia’s most profitable business — bottled water — demonstrated its ability to withstand the highly competitive market promotions while our 5-gallon water displayed even stronger doubledigit volume growth. Food category continued its remarkable top and bottom line growth, with net revenues increasing by 13 per cent to Dh148 million.”

In the nine-month period ending September 30, the company posted a profit of Dh159 million compared to Dh165 million during the same period last year, down 3.7 per cent. “Last year we had a one-off from selling land and there was also the Qatar business; we are no longer exporting to Qatar and that impacted us. If you take these factors out, we have grown by 9 per cent compared to last year,” Al Wahedi told Gulf News.

Agthia recently started production of Al Ain water in Kuwait, with an investment of Dh50 million. In Saudi Arabia, the company is in the process commissioning a new high-speed bottling line with an investment of Dh50 million, Al Wahedi added.

13% Increase in net revenues to Dh148m