Agthia Group’s net profit increases 20%

Agthia Group, one of the UAE’s leading F&B companies, reported that net profit for the first half of 2015 increased 20 percent from the same period in 2014 to AED125 million, driven by higher sales and improved margins. Net sales for the period grew 11 percent to AED911 million.
Dhafer Ayed Al-Ahbabi, chairman of Agthia Group, commented: “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. These results underline our commitment and ability to deliver sustainable, profitable growth for our shareholders by becoming market leaders in our chosen categories and pursuing aggressive distribution and product portfolio expansion.”
Iqbal Hamzah, CEO of Agthia, said: "Agthia's core businesses continue to grow year-on-year, with the water and beverages segment leading the way. Robust double-digit growth in profit and sales is a reflection of the successful implementation of our strategy, underpinning the trust that our customers and consumers have in our products."
The Agri Business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, saw net sales reach AED560 million for the first half of 2015, delivering a 5 percent increase from the same period last year. Net profit surged 12 percent year-on-year to AED127 million, driven by an improvement in gross margins for feed resulting from competitive grain sourcing and favorable volume mix, and distribution gains for flour.
Sales at Grand Mills flour grew 9 percent in the period (15 percent, including wheat trading) as the company secured new customers in the Northern Emirates, made distribution gains in both modern and lower retail trade outlets, achieved higher exports sales, and improved penetration of recently launched Arabic bread flour in the Northern Emirates.