Al Ain fresh juices boost Agthia Group profit

Abu Dhabi: Agthia Group PJSC, one of UAE's leading food and beverage groups, reported a 21 per cent growth in net profits to Dh27 million during the first quarter.

 The company reported a 12 per cent increase in net sales year on year, reaching Dh311 million. Agthia's Consumer Business Division achieved net sales growth of 17 per cent year on year while the Agri Business Division grew by 10 per cent.

"The newly launched Yoplait fresh dairy products and Chiquita natural juices are progressing well; priority remains to drive distribution penetration across all retail segments while building strong in store presence and visibility," the company said in a statement.

"The response to the range of newly launched Al Ain fresh juices continues to be encouraging and the company is adding new customers," it said. 

The company completed the 100 per cent share acquisition of the Turkey based spring water company in March 2012. Plans are underway to revamp the brand, expand regional distribution in Turkey and launch the ‘natural spring' drinking water in the UAE and wider GCC.

Furthermore, the poultry feed production capacity expansion is on schedule for completion in Q4, 2012, while the frozen baked product launch is planned for Q2, 2013.

Rashed Mubarak Al Hajeri, Chairman of Agthia Group said, "The volatility in the commodity market and the regional unrest pose as challenges, however the Company is progressing in line with its long term strategy. We remain optimistic and expect another year of good performance in 2012."

The water and beverages segment net sales grew by 14 per cent year on year to Dh81 million, while net profit grew by 14 per cent, in line with the sales growth.

The food segment net sales grew by 36 per cent year on year to Dh17 million. Net loss of Dh3.9 million is attributed to the fresh dairy product and Egypt operation.

Ilias Assimakopoulos, Chief Executive Officer of Agthia, added, "We continue to focus on growth opportunities by consolidating the newly introduced products, driving the core business, expanding geographically, while addressing the challenge of higher input costs by pursuing cost savings initiatives. We look forward to the opportunities that will arise with the newly acquired spring water company. We expect 2012 to be another stepping stone year leading us to Agthia's ambition of becoming the UAE's leading food and beverage group."