Abu Dhabi:

Agthia Group, an Abu Dhabi-based food and beverage company, reported on Thursday Dh125 million in net profits, marking a 20 per cent increase in the first half of 2015 compared to the same period in 2014.

The increase was driven by higher sales and improved margins, the company said in a statement, as net sales stood at Dh911 million in H1 2015 — an 11 per cent increase over H1 2014.

“Our second quarter performance builds on the strong start we had in the first three months of 2015, delivering a promising first half of the year in line with our full-year outlook,” said Dhafer Al Ahbabi, chairman of Agthia Group.

Rising sales were backed by growth in the company’s core businesses year-on-year, with the water and beverages segment topping the list.

Meanwhile, Iqbal Hamzah, Agthia’s chief executive officer, said the company benefited from increased margins resulting from lower PET usage, combined with the installation of a high-speed bottling line that expanded capacity by 60 per cent.

A second high speed bottling line is expected to be ready by mid-2016, increasing capacity by a further 40 per cent.

“There are still areas in the Northern Emirates we are trying to enter and capture. We are also trying to strengthen our position in the GCC, and to enter Saudi Arabia with our flour business, which should be happening by the fourth quarter of this year,” Hamzah told Gulf News.

He added that acquisitions were also a key growth strategy for the company.

“[Acquisitions] will happen within the existing [product] categories if we manage to land them. These targets are not always easy especially in this part of the world where businesses are mainly owned by families. Because of that, the asking price can be [too high]. There are discussions going on now, but whether we are able to land them is a question mark,” the CEO said.

Hamzah described H2 2015 as a “promising” period, expecting performance to continue to grow.

The consumer business, which produces and distributes brands including Al Ain Water, Alpin Spring Water, Yoplait dairy, and Capri Sun juices, recorded net sales of Dh351 million in H1 2015. The figure marks a 21 per cent year-on-year rise. Net profits for consumer business jumped 60 per cent to Dh35 million.

The agri business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, recorded net sales of Dh560 million for the first half of 2015 — up five per cent from H1 2014. Net profit surged 12 per cent year-on-year to reach Dh127 million.

On Thursday, Agthia’s share prices went up 1.98 per cent to reach Dh7.71 on the Abu Dhabi Securities Exchange (ADX).