x Abu Dhabi, UAESunday 23 July 2017

Cool profits in drinks after long, hot UAE summer

Drinks companies across the UAE look like a safe bet for investment after the long, hot summer sent profits to new highs.

Drinks companies across the UAE look like a safe bet for investment after the long, hot summer sent profits to new highs.

Emirates Refreshments, which used to be known as Jeema, enjoyed a huge rise in profits in the third quarter of the year.

The water bottling company's earnings rose more than 135 per cent in the period to Dh146,000 compared with a loss of Dh417,000 in the same quarter last year.

The rise is a rare piece of good news for the company, which said in January last year it would close stores and warehouses across the Emirates and shift stocks to its main premises in Dubai in an effort to cut costs.

The company's board also decided to outsource operations of its vehicle fleet.

Meanwhile, profits at Pepsi continued to bubble up in the third quarter, despite a slight decline in revenue. Dubai Refreshments, the bottler of Pepsi in Dubai and the Northern Emirates, increased profits in the third quarter to Dh37.5 million from Dh30.7m during the same period last year, representing growth of 27 per cent.

It follows a second-quarter rise of 42 per cent in profits due to strong sales to thirsty tourists in hotels and restaurants.

The second quarter also marked a 14 per cent increase in revenues but the momentum did not continue into the third. Revenue in the three months to September 30 amounted to Dh254m compared with Dh 268m in the same period last year.

The company is planning to open a Dh500m bottling facility in Dubai Investments Park next year.

gduncan@thenational.ae