The Emirati agthia company recorded profits below expectations for 2020, as profits fell by 75% compared to 2019 profits, to reach 34.5 million dirhams. The average forecast of analysts was about Eighty million dirhams.
According to Arabiya Net, Agthia clarified that the results for 2020 included a one-off item worth 82 million dirhams following the strategic review that the company undertook in the third quarter to improve the quality of profits. If this clause is excluded, profits will amount to 117 million dirhams.
The total assets of Agthia Group amounted to 3.1 billion dirhams, while total shareholders' equity reached 1.9 billion dirhams.
The Consumer Business division's contribution to Agthia Group reached 55% of net revenues, in a move attributed to the growth in the business of distributing 5 gallon water bottles to homes and offices In the UAE and the food sector business in both the Emirates and Egypt, as well as its operations in the State of Kuwait. Agthia maintained its leadership in the bottled water category, despite the decline in the volume of business due to the decrease in consumption, due to the impact of the Covid-19 crisis, which led to the imposition of restrictions on the movement of tourism. In the retail sector, the company's water portfolio represented by Al Ain, Al Bayan and Albin water maintained its leadership in the market, with its share of 27 and 24% in terms of volume and profits respectively.
Regarding the agribusiness division consisting of the Grand Mills of Flour Mills and Agrivita Animal Feed, the flour business segment has been outpaced by strong growth in both domestic and global sales activity. For its part, sales of animal feed remained stable despite the decrease in domestic demand in light of restrictions imposed on the trade of subsidized animal feed in the open market.
