Company sales volumes up; total revenue worth AED 427 million
Dubai Refreshments Company (P.J.S.C.), the sole franchisee, manufacturer and distributor of Pepsi-Cola products in Dubai, Sharjah and Northern Emirates, has announced a net profit of AED 60 million in the first half of 2013, as per the preliminary unaudited results for the six months ending June 30, 2013.
The first six months of 2013 reflect good growth in local market but significant slowdown in exports for Dubai Refreshments with sales volumes in the local market showing solid gains compared to the last year, behind increased marketing spending.
Revenues were to AED 427 million, a drop of 16% compared to the AED 510 million revenues in the first six months of 2012. The company registered an operating profit of AED 52 million in H1 2013, compared to AED 82 million in the comparable period last year. The drop in revenues and operating profits is mainly due to a decrease in sales volumes in the exports business and increased spending on consumer targeted initiatives in the local market.
Tarek El Sakka, General Manager of Dubai Refreshments, said: DRC continues to show significant strength in the local market. Results were impacted by the volatile export business which was particularly strong in 2012. We expect less volatility as we progress forward with local business largely offsetting the drop in exports.