UAE food, beverage giant Agthia posts decline in net profit on lower subsidy
Revenue rose year on year by 3.4% when compared to the same quarter last year
Abu Dhabi: Agthia Group, the UAE-based food and beverage group, on Wednesday reported a net profit of Dh40 million and a revenue of Dh508 million in the first quarter of 2019, the company said in a statement.
Revenues of the firm listed on Abu Dhabi bourse increased by 3.4 per cent in the first quarter of 2019 compared to the same period in 2018.
Net profit was behind last year on account of lower subsidy-related income in flour, and lower water pricing relative to last year’s first quarter against a backdrop of heavy promotional price reductions in home market.
Excluding last year’s flour subsidy, net profit for this period will be higher in comparison to the same period last year, according to the company.
“Agthia continues to retain a leading market position in multiple sectors, crowned by our continuously growing market share in a heavily competitive UAE water market,” said Tariq Ahmad Al Wahedi, Chief Executive Officer of Agthia.
“External factors such as latest tranche of subsidy rationalisation affecting our flour business are naturally slowing down our profit growth. However, our financial strength remains solidly in place to allow us to face these challenges head on, and to pursue our mission to become a regional leader in delivering the best quality, nutritious and responsibly produced products.”
The Group commenced 2019 with the launch of five new products. In water, alongside Alpin Alkaline Water and Al Ain Bag-in-Box, Agthia has unveiled the region’s first zero-bromate-branded drinking water named Al Ain Zero Bromate Water that is expected to have health benefits for the users.