Abu Dhabi's food giant Agthia Group's net profit grew 12 per cent year-on-year to Dh179 million for the first nine months of 2015, on stronger sales.
The sales showed 12 per cent year-on-year, the food and beverage manufacturer said in a regulatory filing to Abu Dhabi Securities Exchange.
The consumer business, which produces and distributes consumer brands such as Al Ain Bottled Water, Alpin Natural Spring Water, Yoplait fresh dairy products and Capri Sun juices, recorded a solid sales growth of 21 per cent year-on-year net sales to Dh544 million for the period.
Net profit jumped 52 per cent to Dh61 million, driven by the strong performance of water and beverage category in addition to increased margins of Al Ain water resulting from lower PET usage and higher production efficiencies.
Net sales for water & beverages during the period reached Dh457 million, 24 per cent ahead of the same period last year. This was supported by distribution gains and increased visibility across the trade. Alpin natural spring water sales in Turkey are beginning to gain momentum, while also growing market share in the UAE, with shipments increasing more than double during the period.
Capri Sun's business performance continued to show a good recovery with sales up 12 per cent to Dh53 million versus last year. The turnaround has been achieved through improved merchandising, the launch of new flavours and increased marketing activities.
The food segment achieved net sales of Dh87 million, with dairy producing 13 per cent sales growth and improved gross margins as the result of executing a new strategy as well as lower milk powder prices. Overall the food business loss declined versus last year. The company continues to work on building its Frozen Baked business in the UAE. Meanwhile, shipments to a leading international airline of Monty's Bakehouse products are due to start in November.
This performance was driven by a growth in sales of 12 per cent to Dh1.4 billion, as well as improved gross margins. The Agri Business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products, saw net sales grow six per cent year-on-year to Dh833 million for the nine months ending 30th September due to aggressive distribution gains in flour.
Net profit rose 14 per cent year-on-year to Dh177 million, driven by a significant improvement in gross margin resulting from operational efficiencies and favourable commodity prices. Grand Mills flour sales grew nine per cent in the period, largely driven by the continued acquisition of new customers, distribution expansion in the UAE and exports.
Agrivita Feed sales volumes remained steady compared with the same period last year, due to a delay in the shipment of tender orders expected in the first half of the year. However, low commodity prices and a favourable product mix produced a 7 per cent growth in net profit against the same period last year. The company continues to increase the number of strategic outlets and implementing initiatives to boost sales.
Engr. Dhafer Ayed Al Ahbabi, chairman of Agthia Group commented: "Our performance over the last nine months shows that we are making strong progress on our strategy to become the market leader in our chosen categories."
Iqbal Hamzah, chief executive officer of Agthia, added: "This has been a solid nine months for the business. We have seen our core businesses continue to grow year-on-year, with water and beverages and flour categories in particular driving the results."