Agthia Revenue Up Sharply

Abu Dhabi-based food and drink giant Emirates Foodstuff and Mineral Water Company (Agthia) has reported turnover of AED854mn (US$232.5mn) and net income of AED72.2mn (US$19.66mn) for the 2008 financial year. The posting represented stellar year-on-year (y-o-y) growth of 48% and 89% respectively. Despite an abrupt fall in the UAE's economic outlook (BMI has revised down its forecast to reflect a 1.4% GDP contraction in 2009) we believe Agthia should perform resiliently this year. Notwithstanding the fact that UAE consumers are relatively price insensitive, the majority of the company's products are considered essential goods within most households. We are particularly upbeat

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