Abu Dhabi company Agthia, which in  recent months has diversified including acquiring the right to produce one of the world’s leading juice brands, reported strong results for the first nine months of 2008 that surpassed levels for the whole of the previous year.

Sales for the first three quarters grew to Dh599 million ($163.08 million), up 46 per cent over the same period in 2007 with Q3 sales alone reaching Dh215 million, an increase of 49 per cent compared to the year-ago period.
Net profits for January to September were Dh54 million, which was an improvement of 90 per cent over the corresponding period in 2007.
Sales for the whole of 2007 aggregated Dh578.7 million with net profits of Dh38.1 million.
 Agthia, the better-known name of Emirates Foodstuff and Mineral Water Company, will begin in the first quarter of 2009 to produce and distribute Capri-Sun/Capri-Sonne fruit juice drinks exclusively in the Gulf other than Saudi Arabia.
This follows an agreement it signed with Germany-based Wild Group earlier this year.
Agthia will join beverage giants like Coca-Cola and Kraft, who have been manufacturing and distributing Capri-Sun, in the UK, France and the USA.
Capri-Sun is described as the third largest fruit-juice brand globally and the world’s number 1 kids’ juice drink with the UAE being one of the highest per capita consumption markets in the world. Capri-Sun is produced in 18 countries and enjoyed by children in more than 100.
Agthia has also established a greenfield tomato paste and frozen vegetable production facility in Egypt which will go on stream before the end of 2008.
Also, at the beginning of this year it acquired the Al Ain Vegetable & Tomato Paste company.
Agthia has over 800 employees in its three divisions - Al Ain Mineral Water Company, Grand Mills for Flour & Feed and Al Ain Vegetable & Tomato Paste.  Among the brands it produces and distributes are Al Ain Water, Ice Crystal and Mother Parkers Tea & Coffee.
“Despite one of the most dramatic periods in the modern history of the world’s economy, the company remains insulated from the effects of the global credit crisis and avoided any fallout from reduced consumer spending,” a company statement said.
Agthia is listed on the Abu Dhabi Stock Market. Fifty-one per cent of its shares are held by General Holding Corporation, an Abu Dhabi Government institution, with the balance held by the general public and institutional investors.  
It was established as part of a privatisation process undertaken by the Abu Dhabi Government to revitalise industry in an increasingly diversified and rapidly developing economy.
 
Water
Al Ain Mineral Water Company is claimed to be the number two drinking water brand in the UAE with a reported market share of 23 per cent. It will add Capri-Sun to its portfolio.
The third quarter of 2008 was a very successful one for the company’s water business, helping total sales for the period January through September to reach Dh101 million, a growth of 41 per cent over the same period of 2007
Sales were strong in the five-gallon Ice Crystal brand.

Flour and feed
Flour and feed sales were Dh498 million in the first three quarters of 2008, representing a 47 per cent increase over the same period last year.
“Gross Profit grew ahead of the sales growth at 73 per cent, as a result of higher volume, favourable pricing impact, increased production volume and procurement initiatives,” a company statement said. 
“As part of the company’s ongoing initiative to improve margins through launching value-added products,  the company launched in Quarter 3 new flour retail packs aimed at end consumers. The response from trade and consumers has been very encouraging.”

Frozen vegetables and tomato paste
As regards its frozen vegetable and tomato paste business, the third quarter of 2008 saw the Al Ain Vegetable & Tomato Paste business, which was acquired in January 2008, become fully integrated into the company.
The initial financial results, not included in the consolidated financials, reflect sales of Dh33 million, a 101 per cent year on year growth.  Profits for the period were Dh3.5 million, against a loss of Dh1.7 million in the same period last year, as a result of the multi-faceted turnaround strategy that is being successfully implemented at the company.