Essentially (ESSN), the Middle East focused manufacturer of healthy snacks and drinks, has disclosed its interim results for the first half of 2023, revealing a period of notable growth and strategic initiatives in the beverage and healthy snack industry, while emphasizing its commitment to sustainability and environmental consciousness.
During this six-month period, which saw the company float on Aquis, Essentially delivered a 14% increase in operational trading revenue compared to H1 2022. This revenue growth reflects the company's ongoing retail expansion, with its store footprint increasing by 53%.
One of the key achievements during this period was the improvement in gross profit margins, which rose to 52% compared to the 41% reported for the year ending December 31, 2022. Meanwhile, the successful installation and completion of trials for the High-Pressure Processing equipment promises improved gross margins and enhanced research and development capabilities, leading to faster product launches.
Essentially successfully commenced the supply of healthy snacks to prestigious five-star hotels in the UAE, including Emirates Palace, Mandarin Oriental Hotel, Marriot Hotel and Resort, and the St. Regis. Additionally, the group increased the supply of beverages to leading petrol station operators such as Emarat, ADNOC, EPPCO, and ENOC, with benefits expected to materialize in the coming months.
In terms of sustainability, Essentially partnered with RECAPP by Veolia to recycle over 1,083 kilograms of plastic, reducing CO2 emissions by 2,395 kilograms. It also invested in technology to supply beverages in biodegradable bottles, starting with 250ml bottles.
After the period end, Essentially secured a rolling two-year private label contract with the master UAE franchisor of a global premium F&B brand, enabling it to produce and supply 11 flavours of juices and wellness shots. The brand's plans to expand its presence in the UAE from 3 to 20 stores indicate substantial growth potential in this partnership.
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Essentially continues to make steady progress in listing as it aims to tap into a burgeoning health and wellness trend in the fast-growing UAE. Strong non-oil exports are expected to keep the country's current account surplus in double digits until at least 2025.
The travel and tourism sector are pivotal drivers of economic growth, with passenger numbers at Dubai International Airport and Al Maktoum International Airport surpassing pre-pandemic levels. Anticipated international visitor growth in 2023 underscores the sector's vitality
Meanwhile, Dubai’s hosting of COP 28, the climate change conference, between November 30th and December 12th, 2023, is expected to attract a significant number of visitors and highlights the city's global significance in addressing environmental concerns, which Essentially is making huge progress in addressing.