- Led by Al Ain and Al Ain ZERO, Water business continues to drive growth.
- Chairman and Vice Chairman re-elected; Committee Members named.
ABU DHABI, May 11, 2017: Agthia Group PJSC, one of the UAE’s leading food and beverage groups, has reported net profit of AED 52 million for Q1 2017, while net revenue grew 7 percent from Q1 2016 to reach AED 521 million.
The higher revenue was led by the Group’s flagship Water business and, in particular, the performance of recently acquired Delta Water in Saudi Arabia, which was incorporated within Agthia’s results for the first time. Lower animal feed sales, utility tariff increases and a challenging macroeconomic climate moderated profitability despite a rigorous programme of internal cost optimization.
HE Eng. Dhafer Ayed Al Ahbabi, Chairman of Agthia, said: “Agthia continues to demonstrate that its 2020 strategy is effective in a challenging operating environment. While we anticipate headwinds to prevail throughout the year, the strength of brands within Agthia’s portfolio of consumer goods will continue to drive growth. On a personal note, I am honored to be re-elected as Chairman and I look forward to continuing stewardship of this dynamic business as the journey to become the region’s leading food and beverage companies continues.”
Tariq Al Wahedi, Acting Chief Executive Officer of Agthia, added: “Led by our thriving Water business, and the growth of innovative products such as Al Ain ZERO, Agthia has had a strong start to 2017 posting healthy profits and a solid increase in revenue. Our organic growth in our consumer segment has been enhanced by the performance of the Delta Water business in Saudi Arabia, while our joint venture with Anderson Hay upholds our commitment to the UAE’s farming industry.”
The Group is pursuing a five-year strategy aimed at becoming one of the Middle East’s leading food and beverage companies. The cornerstone of this strategy is expanding the Agthia’s Water business, led by the Al Ain and sodium-free Al Ain ZERO brands. The division has seen strong and fast-growing sales in 2017 and, to meet customer demand, Agthia launched a 5-Gallon Al Ain ZERO bottle size earlier this month to cater to the home and office market.
Following Agthia’s Annual General Meeting in April 2017, a Board meeting was held on May 10, 2017 at which Chairman, HE Eng. Dhafer Ayed Al Ahbabi, and Vice Chairman, HE Rashed Hamad Al Dhaheri, were re-elected for the next three years. Members of the Audit Committee and Nomination and Remuneration Committee were also named during the meeting.
Agthia recently announced that it was entering a joint venture with Anderson Hay & Grain Co. Inc., the USA’s number one hay exporter, and launched its first premium forage product under the Agrivita Marabe brand. This represents the latest addition to the Group’s animal feed portfolio which offers a full-service solution to livestock customers in the UAE.
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About Agthia
Agthia Group is a leading Abu Dhabi based food and beverage company. Established in 2004, the Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “AGTHIA”. 51 percent of the Company’s shares are held by Senaat (General Holding Corporation), an Abu Dhabi Government entity, with the balance held by retail and institutional investors. The Company’s assets are located in the UAE, Oman, Egypt and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East. More than 3,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products: Water (Al Ain, Al Bayan, Alpin natural spring water); Flour (Grand Mills); Animal Feed (Agrivita); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait). An Emerging Businesses unit includes tomato paste, frozen vegetables, fruit puree, and baked goods. For more information: www.agthia.com | Ozgur Serin | Agthia Group | Tel: 971 2 506 0600 |ir@agthia.com | Tom Drummond | Brunswick Group | Tel: 971 54 305 6609 | agthia@brunswickgroup.com