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AGTHIA Q1 net profit rises 35 per cent on higher sales

ABU DHABI — Emirates Foodstuff & Mineral Water Company (AGTHIA) has announced a leap in first quarter net profits. The company, which controls Al Ain Mineral Water Company and Grand Mills for Flour & Animal Feed Company has reported net sales of Dh131.9 million in the first quarter of this year, up 35 per cent compared to the same period in 2006.

Net profit was also up 35 per cent to Dh9 million, resulting from higher sales and improved gross margin despite the rising grain prices. Flour and feed sales registered an impressive 37 per cent growth, while mineral water sales were up 19 per cent.

Ilias Assimakopoulos, chief executive officer of AGTHIA, said the figures prove the management's plans to transform the business are already reaping rewards. While these efforts are still in early stages, the initial results are encouraging, he said. "We have made immediate changes to improve our short term performance, launching a wide-ranging attack on costs while focusing on improving productivity and asset management. While the changes have already yielded positive results, there is still room for further improvement."

AGTHIA recently welcomed Shaikh Hamed bin Zayed Al Nahyan, Chairman of General Holding Company and a major shareholder of Emirates Foodstuff & Mineral Water Company PJSC, to their offices in Abu Dhabi, who reviewed the performance of the company. He expressed his support to the food company and showed satisfaction over the strategies and action plans, as well as the company's new vision, mission and objectives set for the next three years to provide maximum benefit for all the shareholders.

"The business transformation is in gear. Each of the businesses now has a clear direction for the future and we look forward to building on these fantastic achievements," commented Rashed Al Hajeri, Chairman of the Board of AGTHIA.