Dubai Refreshments executives must have experienced something of a sugar rush yesterday as the company doubled its profits for the first half of the year.
The exclusive bottler and distributor of Pepsi in the UAE injected some fizz into the start of the earnings season with a 15 per cent increase in revenues to Dh444 million (US$120.8m) compared with the same period last year.
"The UAE has benefited from the price increase we took at the beginning of year, but this has been offset by an increase in costs of raw materials and a reduction in volumes," said Tarek El Sakka, the general manager of Dubai Refreshments.
Along with its major competitor, Coca-Cola, Dubai Refreshments increased the price of a can of Pepsi from Dh1 to Dh1.50 in January, having kept prices unchanged for 20 years.
"Volumes are down as expected, but we are operating on plan as a result of the price increase," said Mr El Sakka. "It's very much in line with the plan in our growth markets."
Sugar prices, a major raw material cost for beverage bottlers, hit record highs in January, almost doubling in little more than nine months. Prices have since come down by about 25 per cent, according to the UN's food index.
The increase in price and a reduction in costs helped boost Dubai Refreshment's profits by 109 per cent to Dh61.1m in the first six months of this year, up from Dh29.2m in the same period last year.
The company has the licence to bottle and distribute Pepsi, as well as many of PepsiCo's other brands such as 7UP, Mountain Dew and Mirinda.
The Pepsi brand is the market leader in the UAE, with a 15 per cent market share, compared with 10 per cent for Coca-Cola, according to Euromonitor, a data provider.
Sana Toukan, the research manager in the Middle East for Euromonitor International, said although consumers initially responded negatively to the increases in price of both Pepsi and Coca-Cola, they had since started buying again.
"Demand recovered quickly due to strong loyalty for both brands and the lack of similar alternatives,"she said.
Mr El Sakka said although the company had seen weak volumes in the UAE, volumes in export markets were growing strongly, particularly in the Horn of Africa, Kenya, Tanzania and Afghanistan.
The company has also made some long-term cost savings.
Dubai Refreshments has reduced the amount of packaging it uses and made the top of its cans smaller to reduce aluminium costs.
rjones@thenational.ae
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The specs
The specs: 2019 Audi Q8
Price, base: Dh315,000
Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km
THE BIO
Favourite place to go to in the UAE: The desert sand dunes, just after some rain
Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude
Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE
Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally
Favourite subjects in school: Mathematics and science
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
