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Ghitha posted unrivaled results for the nine months to September, with revenue of AED1.5 billion, up 268 percent from AED409 million a year ago. The gain was attributed to the consumer goods segment, which accounted for 79% of revenue, which grew 190%. Food service is also important.
In addition, the group benefited from the acquisition of Tamween Companies Management, a provider of integrated supply solutions to the food and service industries. Tamween contributed revenue and profit to the latest results, with a profit of AED 135 million. The overall figure reflects Ghita’s efforts to diversify its product offering, increase its scale and pursue higher margins.
Total assets topped AED4.2 billion at the end of September, from AED1.5 billion a year earlier. This reflects a high-yield strategic expansion in the Distribution, Operations, Frozen Foods, Farm and Livestock segments resulting in a healthy set of financial positions. Overall, the company maintained a strong balance sheet position, with cash and cash equivalents increasing from AED 175 million in 2020 to AED 223 million in 2021, or a 28% increase, to support its future acquisitions and Plans to set up new subsidiaries.
Shares of Ghithia have soared 154% so far this year, suggesting that expansion and diversification strategies are revaluing shareholders. The benefit of operating in the restaurant industry is that the company can demonstrate sustainable and sustained growth due to the stability of being in a defensive industry, which protects it from cyclical macroeconomic shifts.
In addition, the UAE’s growing population and attractive tourism and hospitality sectors provide it with a platform to pursue growth through increased market share. Ghitha Holding does not currently pay any dividends, which means all its profits are reinvested.
This enables strong earnings growth rates that ultimately benefit shareholders. Ghitha has solid foundations and vision and should be able to capture new prospects in the UAE F&B industry.
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