Agthia’s 17 per cent rise in third-quarter profit falls short of estimates

Flour and water combined to generate extra dough for Agthia in the third quarter, even as profits fell short of analysts’ forecasts.

The Abu Dhabi-listed company, known for its Al Ain bottled water and Grand Mills flour, reported a 17 per cent rise in profits to Dh54.2 million for the three months to the end of September.

That was below an average estimate of Dh66.7m in quarterly profit from five analysts polled by Bloomberg.

The stock gained 3.9 per cent to close at Dh7.65 a piece.

“We have seen our core businesses continue to grow year on year, with water and beverages and flour categories in particular driving the results,” said the chief executive Iqbal Hamzah.

“Our business and financial position is strong and we have the right strategy in place to remain on our growth trajectory, creating value to our shareholders.”

Agthia’s water and beverages segment, dominated by Al Ain bottled water, saw net revenues increase 24 per cent to Dh457m during the first nine months of the year. The net profit for the segment rose 30 per cent to Dh80m.

The company attributed the gains to expanded distribution of Al Ain, especially across the Northern Emirates, together with price increases in the retail sector.

This month, Agthia bolstered its position in the bottled water market, agreeing to buy Al Bayan Purification and Bottled Water, Shaklan Plastic Manufacturing and Al Manal Purification and Bottling Mineral Water.

The company, however, did not disclose the purchase price.

Flour sales were the highlight of its agribusiness segment, with sales rising by 6 per cent and profits increasing 14 per cent during the nine months up to September.

Revenues from Grand Mills flour increased 9 per cent during the nine-month period, with profits up 19 per cent.

Follow The National’s Business section on Twitter


Share This Post