F&B company Agthia names new chief

Agthia names Tariq Al Wahedi as acting chief executive amid profit slowdown.

The board of Agthia, the biggest publicly traded food and beverage company in the UAE, said it had accepted the resignation of its chief executive Iqbal Hamzah and appointed Tariq Ahmed Saeed Al Wahedi as acting CEO until further notice.

The board also approved the company’s 2017 budget plans at its meeting yesterday, according to a brief filing with the Abu Dhabi stock exchange.

A company spokesperson was not immediately available to elaborate on the statement.

Mr Hamzah’s resignation comes amid increased financial strain for the company following the Government’s move to phase out the subsidies it gives it. The company in November forecast a slowdown in profit growth for 2016. The company, which sells Al Ain water and Grand Mills flour among other brands, has said it expects full-year growth in revenue of about 8 per cent, and 9 per cent for profit in 2016 compared with a year earlier.

Profit rose 20 per cent to Dh231 million in 2015 from a year earlier. The company has also suffered in the general economic slowdown after the oil price collapse but has plans to boost growth.

“There has been a decline in market share in flour and animal feed business in Abu Dhabi, but we are trying to recover that through expansion in Northern Emirates and exports,” Mr Hamzah said previously. “Next year would be a growth year through acquisitions in the beverage segment, exports and new products.” Shares of Agthia were trading 2.8 per cent lower at Dh6.9 as of noon in Abu Dhabi. The company’s stock dropped 7.4 per cent last year.

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