Dubai: The Abu Dhabi headquartered F&B giant, Agthia, recorded net profits of Dh34.5 million for 2020, derived from Dh2.06 billion in revenues. For 2019, the company had a net profit of Dh137 million on Dh2.04 billion in revenues.
The numbers were driven by its consumer business, which made up 55 per cent of turnover. The food division also recorded gains, especially in the UAE and Egypt. It was in 2020 that Agthia - which owns the ‘Al Ain’ and ‘Al Bayan’ water brands - went through a series of consolidation and acquisition moves, as part of a strategy adopted by its parent entity ADQ.
“Despite the descent in volume on lower consumption due to restrained tourism and COVID-19 impact on the food service channel, Agthia maintained its no. 1 position in the bottled water category,” the company said in a statement.
In support of our growth agenda, we underwent major changes including the appointment of a new board, CEO and new top team additions along with the sign-off of the distribution agreement with VOSS and progress made in value-creating acquisitions of Al Foah Company and Al Faysal Bakery & Sweets
"In 2020, Agthia continued its growth momentum by investing in meeting the demands of our consumers in a challenging environment," said Alan Smith, CEO. "The Group’s success has also been complemented by enhanced agri-business margins, particularly the flour business which beat estimates with strong growth in local and regional markets.
"While net profit stood at Dh34.5 million, the normalized net profit of Dh117 million excludes the Dh82 million one-off aggregate recorded in the third quarter, post the strategic review exercise to improve the quality of earnings.”