Abu Dhabi: Agthia Group, an Abu Dhabi-based food and beverage company planning to enter the Saudi market, on Sunday announced that net profit for 2014 increased 22 per cent from the previous year to Dhs193.3 million. Net sales grew 9 per cent to Dh1.66 billion.

The growth in profit was driven by higher sales and strong margin improvements, the company said in a press statement.

Gross profit margins rose 90 basis points to 28 per cent, reflecting an aggressive focus on the competitive sourcing of grains, ongoing cost saving initiatives, in-house production of previously outsourced animal feed and stable flour pricing in the Northern Emirates, the company said.

Speaking to Gulf News, Iqbal Hamzah, Chief Executive Officer of Agthia said they are expecting another good year in 2015. “We are expecting another growth year with clear strategies and initiatives. We don’t see big impact on our strategies due to falling oil prices.”

“We are planning to expand our distribution network in the UAE, launch new products, enter the Saudi market and increase our water bottling production capacity in Turkey by March this year,” said Hamzah.

He said that total capital expenditure for the group would be around Dh200 million in 2015.

On acquisitions, he said discussions are going on but refused to divulge details. “There are plans of acquisitions. We have options available. It is too early to share anything. One of our growth strategies is linked to acquisitions.”

The Abu Dhabi listed company is also looking into the possibility of entering Egypt with their bottled water this year.

Agthia, which is listed on Abu Dhabi Securities Exchange employs around 2,000 employees and has two business divisions in various food and beverage segments including in agribusiness and consumer products.

The Agri business, which manufactures and distributes Grand Mills flour and Agrivita animal feed products recorded net profit of Dhs201 million, an increase of 17 per cent year-on-year.

The consumer business, which produces and distributes consumer brands including Al Ain bottled water, Alpin natural spring water, Yoplait fresh dairy products and Capri-Sun juices, recorded net profit of Dh57.3 million, 10 per cent higher than 2013.