Agthia, the Abu Dhabi food and beverage company that produces Al Ain water, reported a 15.2 per cent year-on-year drop in its first-quarter net income on removal of some of government subsidies.
Net profit attributable to equity holders dipped to Dh40 million in the three months to the end of March, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“Lower subsidy-related income in flour – remaining 50 per cent subsidy in bakery is zeroed out as of January 1 this year – has been one of the larger contributors in the shortfall,” Dhafer Al Ahbabi, the chairman of Agthia, said.“Lower average price per case in bottled water is another material factor behind lower net profit.”
However, Agthia, which is majority owned by Abu Dhabi Government-controlled conglomerate Senaat, posted a 3.4 per cent rise in quarterly revenues to Dh508m. Total assets at the end of the first three months climbed 5.5 per cent to Dh3.13 billion.
