Business | Markets
Agthia posts 94% growth in earnings
Agthia, a UAE-based food and beverages group, yesterday said it recorded a 44 per cent growth in sales in the first half of 2008 compared to the same period last year, and a 94 per cent growth in its net profit.
- Staff Report
- Published: 00:02 July 31, 2008
Dubai: Agthia, a UAE-based food and beverages group, yesterday said it recorded a 44 per cent growth in sales in the first half of 2008 compared to the same period last year, and a 94 per cent growth in its net profit.
Revenue growth in each of Agthia's operating companies grew with total sales in the first six months of Dh385 million, up from Dh267 million in the first six months of 2007.
After a strong first quarter, the trend continued into the second quarter, with sales reaching Dh199 million, up from Dh136 million in the same period in 2007.
Momentum
"Our second-quarter performance builds upon the momentum of the past few quarters across the business. We have seen solid growth in sales across segments, alongside improvements in margins that have resulted from a number of decisions that management has taken," said Agthia chief executive Ilias Assimakopoulos.
The company attributed the rise in profitability to an increase in the production volume, efficiencies, pricing and efficient procurement of grains.
Feed and flour sales of Dh321 million represented a 43 per cent increase over the same period last year.
Despite soaring grain prices, the gross profit margin also improved from 13.7 per cent to 16.6 per cent as compared to the corresponding period last year.
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