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Abu Dhabi, UAEWednesday 14 November 2018

Abu Dhabi's Agthia posts 6.5% third quarter profit growth on lower costs

The company reported a 4.4 per cent drop in revenue during the period

Cost of sales fell 8.6 per cent to Dh309.6m million. Delores Johnson / The National
Cost of sales fell 8.6 per cent to Dh309.6m million. Delores Johnson / The National

Agthia, the Abu Dhabi food and beverage company that produces Al Ain water, said third quarter profit increased 6.5 per cent profit thanks to a lower cost of sales.

Net profit attributable to equity holders grew to Dh49.5 million in the three months to September 30, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The company, which is majority owned by Abu Dhabi Government-controlled conglomerate Senaat, posted a 4.4 per cent drop in revenue to Dh476.9m. Cost of sales fell 8.6 per cent to Dh309.6m.

“Higher sales volumes, enhanced category and product mix, and greater efficiencies have all contributed to Agthia’s strong third quarter profit performance," said Tariq Al Wahedi, Agthia Group chief executive. “We maintain our positive outlook in delivering our profit targets for the year despite our top line remains under pressure against a backdrop of heavily promoted market and declining category sizes."

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The company posted a 9 per cent growth in net profit to Dh159m in the first nine month of this year on a like-for-like basis, when non-repeating revenues are excluded from the results.

Agthia reported flat revenue growth of Dh1.49 billion from the year earlier period.

Marketing and overhead expenses fell by 5 per cent during the period and helped contribute to overall profit growth.