Masafi profit spurts 36% in 2008

The company also registered net revenue of Dhs378m during the year, recording an impressive growth of 35% over 2007.

Masafi's impressive financial results during 2008, which witnessed rising inflation caused by escalating raw material costs, surging operating expenses and weakened consumer confidence due to the global financial turbulence, have been attributed to its strategic growth strategy aimed at continuous product innovation and diversification.

In his comments, Ashraf Abushady, CEO of Masafi, said:

"Masafi has seen tremendous growth in 2008 amidst this challenging time for all businesses. We pride in the fact that Masafi has consolidated its market leadership, thanks to its world-class product offerings, driven sales efforts and innovative communications campaign. In spite of the credit crunch, we continued undeterred on our growth strategy by diversifying our offerings, thus fulfilling our goal of becoming a total food and beverage company."

He added, "Masafi's stellar performance has also been credited to our adherence to our 3P bottom line strategy - Profit, People and Planet, where our financial bottom lines (profits) were driven from our commitment to tailor our products in line with the need-states, tastes and preferences of our consumers (people) and our company's stress on safeguarding our environment (planet). As part of this cause, we launched the Masafi Carbon Action Plan and the corporate recycling service to reduce the environmental impact of plastic bottles."

One of Masafi's significant achievements during the year was the 'Environmental Contribution of the Year' recognition at 2nd Annual Middle East Business Achievement Awards 2008 in November. Masafi adopted the Carbon Action Plan in 2008 to measure and reduce the carbon emissions and move towards a carbon negative environment.

The first mineral water company in the UAE and among the first in the region to be awarded prestigious ISO 14001 certification for Environmental Management, Masafi is also the first and currently only mineral water company to have an in-house recycling facility. The company has deployed a custom-built collection vehicle dedicated to collecting plastic for the purpose of recycling.

2008 saw Masafi's entry into gourmet food business with Masafi Gourmet Potato Chips - a pivotal step towards the company's objective to provide a premium comprehensive food and beverage portfolio and become a complete FMCG company by 2011.

The year also witnessed Masafi mineral water building on its market leadership and enjoying the highest equity index ever, while Masafi Tissues achieved UAE market leadership, as per a study conducted by A C Nielsen in July 08.

During the year, Masafi Tissues also achieved the number one share of heart across UAE, based on consumers' responses across three basic criteria - willingness to pay a price premium; favourite brand and brand most recommended to friends, and family.

The year also saw Masafi Flavoured Water spearheading the category with 27.8% market share (A C Nielsen, Aug/Sep 2008) with its strawberry, lemon, peach, mint-lemon and the newly-launched Jasmine flavored water.

During 2008, Masafi also launched the innovative proprietary 100% pure juice flavour blends catering to different consumer need-states and wants.