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Agthia to complete Turkey expansion, boost Egypt production

Agthia to complete Turkey expansion, boost Egypt production
Dhafer Al-Ahbabi, Agthia Group Chairman
Agthia
AGTHIA
1.56% 5.87 0.09

By: Ramy Sameeh

Abu Dhabi – Mubasher:  Agthia Group is moving forward with expanding its production in Turkey and is expected to complete its plans during the second quarter of the year, said the Group’s chairman, Dhafer Al-Ahbabi, on the sidelines of the company’s shareholders’ meeting on Sunday.

He added that the new expansions will contribute to raising the Turkish market’s production as well as that of other exporting markets.

Al-Ahbabi noted that Agthia Group achieved 15% growth in its sales in Egypt last year, succeeding in breaking even in terms of revenues and costs for the first time.

The company’s transfer of its tomato paste packaging line from the UAE to Egypt in December aimed to raise the efficiency level of its operations by being close to raw material suppliers, the chairman added.

“We are currently examining the expansion of our operations in Egypt to include new food categories,” Al-Ahbabi revealed.

Agthia will continue to increase the product range of its new unit for frozen pastries as it prepares to begin commercial production at full force this year.

“We are also currently seeking to acquire a good stake in the UAE food services market as well as seize the best opportunities available to export to nearby markets,” the chairman said.

Abu Dhabi-listed Agthia reported a net profit growth of 21.8% to AED 193.3 million for the fiscal year 2014 compared to AED 158.7 million in FY13. The food firm attributed its profit growth to rising sales, up 9% to AED 1.66 billion, as well as profit margins improving by 90 basis points (bps) to 28%.

 

Translated by: Nada Adel Sobhi