Agthia second-quarter profit slides on government subsidy removal
Net profit attributable to equity holders dipped to Dh44 million in the three months to the end of June,
Agthia, the Abu Dhabi food and beverage company that produces Al Ain water, reported a 29 per cent year-on-year drop in second-quarter net profit on removal of few government subsidies.
Net profit attributable to equity holders dipped to Dh44 million in the three months to the end of June, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
However, Agthia, which is majority owned by Abu Dhabi Government-controlled conglomerate Senaat, posted a 7.36 per cent rise in quarterly revenues to Dh554.7m.
“Owing to our adaptability to unfavourable conditions and focus on cost optimisation, we were able to materially limit the impact of external factors such as full flour subsidy removal in Bakery channel, higher commodity prices and lower water pricing on profits,” said Tariq Ahmed Al Wahedi, chief executive of Agthia Group.
He also said the company’s expansion strategy, coupled with diversifying its portfolio, has enabled the group to grow revenues in the first six months of the year.
“Our global assets and businesses also performed exceptionally well, led by Kuwait and Saudi Arabia, where we are steadily growing our market share.”
Revenue in the first six months of the year grew 5.4 per cent to Dh1.06 billion compared to the same period last year, and profit fell 23 per cent to Dh84m.
Agthia’s total assets stood at Dh3.1bn as of June 30, equivalent to 5.6 percent growth versus last year.
Agthia’s water portfolio – Al Ain Water, Al Bayan and Alpin – preserved market share leading position in the UAE at 30 per cent, the company said.
Updated: August 7, 2019 11:24 AM