"Agthia" achieved the highest margins in its history

Agthia, one of the UAE's leading agribusinesses, achieved net profit of AED 159 million in the first nine months of 2018, an increase of 9% over the same period last year. last year, while revenues for the same period reached AED 1.49 billion.

Engaging Dhafer Ayed Al Ahbabi, Chairman of Agthia Group, commented on the results: "The results confirm the group's ability to continue to grow despite the many challenges and strong competition in the market.

Cost

Tariq Ahmed Al Wahidi, general manager of the group, said during a phone conversation with Agence France Presse that Agthia had achieved a gross profit margin of 34.7%, a record and the highest high in the history of the group, thanks to the increased volume of exports, to a better product mix, At the cost price

Al-Wahidi attributed nine-month earnings growth to several key factors, including the focus on geographic expansion and rationalization of spending and the provision of value-added products, in addition to 39; sales increase and category improvement and efficiency, despite the difficult market conditions and high prices of electricity and gasoline.

Al Wahaidi pointed out that the company had gained a top market share of about 30% in the local bottled water market, noting that the bottled water sector was the most profitable among the group companies and that he had demonstrated his ability to cope with the competitive offers of the market. Gallons exceeded two volumes in sales volume.

The growth

The food business continued to grow strongly in revenue and earnings, with net sales up 13% to AED 148 million. The consumer activity, which includes the Water, Beverage and Food units, accounted for 55% of the business turnover over the first nine years of the year. Al Ain maintained its leadership in terms of volume and market share in the UAE, while the volume of bottled water exports increased by two quarters over Saudi Arabia and Turkey.

"We are maintaining our positive outlook for the rest of the year, although our revenues remain largely influenced by competitive pressures and overall sales are declining.

The agri-food division, which includes flour (large mills) and animal feed (Agrifita), posted a net profit of 670 million AED during this period. The company has managed to adapt to the significant reduction in subsidies to flour and feed over the past two years. Feeding activity stabilized and previous profitability levels recovered, penalized by lower prices for imported flour on the market. However, the company's flour and feed brands have maintained their position in the market.

Project

Agthia recently opened the United Gulf Water Plant in Kuwait through a joint venture with Al Wafer Marketing Services for the production of Al Ain Water. The plant provides eye water with four sizes of 200, 330, 500 and 1500 ml.