The Annual General Meeting (AGM) of AGTHIA, the parent company of Grand Mills for Flour & Feed, Al Ain Mineral Water and Al Ain Vegetable Processing & Canning Factory was held at 4.00pm on April 24, 2008, at the main hall of the Abu Dhabi Chamber of Commerce.
The shareholders approved the Audited Financial Statements of the Company for the year ended December 31, 2007, together with the Auditor’s and Director’s Reports thereon. It was also agreed that Mr. Suhail Al Ameri, General Manager of GHC would be appointed as a new member of the Board. The tenure of the current Board Members was extended for a further three years.
With an increase in sales for 2007 of 33.5% to AED 578.7 million and a net profit increase of 31.1% to AED 38.1 million, AGTHIA is a company that managed to deliver strong financial results despite the high gains seen in soft commodities throughout 2007.
‘Our focus on driving AGTHIA to new levels of growth and success has clearly paid off, said AGTHIA’s CEO, Ilias Assimakopoulos. ‘Our financials clearly indicate that our target of solidifying business fundamentals in key business operational areas has driven results,’ he added.
AGTHIA’s recently released Q1 financials for 2008 show that the Company continues to make progress with YTD net revenue growth of 41% and an increase of 104% in net profit compared to the same period last year.
The combined Flour & Feed sales registered 39% growth to AED 158 million over the corresponding 2007 period.
With a new look label and an aggressive advertising campaign, Al Ain Water continues to strengthen its strong footing with sales growing at 55%; Al Ain Water currently has a 23% share of the drinking water market in the UAE.
Last month, Al Ain Water added Capri-Sun to its portfolio. Capri-Sun, the third largest fruit-juice brand globally, is also the world’s No.1 ‘Kids’ Juice drink with UAE being one of the highest per capita consumption markets in the world. AGTHIA will commence manufacturing and distribution of Capri-Sun in the first quarter of 2009, joining beverage giants like Coca-Cola and Kraft, who have been manufacturing and distributing Capri-Sun, in UK, France and the USA.
In 2007, AGTHIA’s ever growing strength and reputation in the Fast Moving Consumer Goods (FMCG) category saw the Company secure distribution rights to Toronto-based Mother Parker’s Tea & Coffee Inc., one of North America’s leading tea and coffee manufacturers. Other Mother Parker’s clients include Air Canada, American Airlines, Tim Hortons, WalMart and Loblaws.
AGTHIA’S acquisitions of Ice Crystal in 2007 and the Al Ain Vegetable Processing and Canning Factory during January 2008 give the company a strong domestic outlook for the remainder of 2008.
Ice Crystal, a five gallon water business acquired in December 2007 has now been fully integrated within Al Ain Water. Ice Crystal gives Al Ain Water access to the lucrative 5 gallon/Litre market adding to the 5 litre, 1.5 litre, 500ml and 330ml bottles, as well as the 250ml and 100ml cups already sold.
The Al Ain Vegetable factory deal will enable AGTHIA to tap into the very lucrative tomato paste and frozen vegetable markets, and Grand Mills’ introduction of speciality flours during November of 2007, shows a real desire for growth in the bread and baked goods category.
With a good domestic history and eyes towards an international future, AGTHIA is an Abu-Dhabi-based company on the right track. Investments in waste reduction equipment, environmental awareness programmes for employees and the public alike, and quality accreditations that are internationally recognized, are pushing the Emirates Foodstuff and Mineral Water Company to the top of the FMCG tree.
‘The outlook for 2008 is positive and we are further geared up for an even better and healthier business performance in the years to come,’ said H.E. Rashid Al Hajeri, Chairman of the Board of AGTHIA.
About Emirates Foodstuff & Mineral Water Company PJSC (AGTHIA)
Emirates Foodstuff & Mineral Water Company PJSC (AGTHIA) is a public joint stock company incorporated in Abu Dhabi, UAE, in 2004 as part of a privatization process undertaken by the Abu Dhabi Government to revitalize the industry in an increasingly diversified and rapidly developing economy. The company is listed on the Abu Dhabi Stock Market and was floated through a successful Initial Public Offering in late 2004. 51% of the shares are held by General Holding Corporation, an Abu Dhabi Government institution, with the balance being held by the general public and institutional investors.
AGTHIA’s current portfolio consists of Al Ain Mineral Water Company – a leading producer of high-quality bottled mineral water, and Grand Mills For Flour & Feed Company – a pioneer in manufacturing and production of the highest quality flour and animal feed. Al Ain Mineral Water Co was established in 1990 and the manufacturing facilities are situated in Al Ain, in the Emirate of Abu Dhabi. Grand Mills Flour & Feed Company commenced operations with the flour mill in 1978, while the animal feed production started in 1981. The manufacturing facilities are located at Port Zayed in Abu Dhabi. The Company also acquired Al Ain Vegetable Processing and Canning Factory in January 2008.
