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Essentially chosen as supplier for UN Climate Change Conference, showcasing sustainable growth in the UAE

12:34, 28th November 2023
Victor Parker
Vox Newswire
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Essentially (ESSNFollow | ESSN, the UAE-focused manufacturer of healthy snacks and drinks, announced it has been selected as a preferred supplier of juice for the United Nations Climate Change Conference, also known as Conference of the Parties (COP28), taking place from 30 November to 12 December 2023 at Expo City, Dubai.

The London-listed company has been rapidly expanding in the UAE since floating on Aquis in March, recording 14% revenue growth and 53% growth in retail locations for the 6 months to June 30 2023. Essentially was picked as a supplier to the UN Climate Change Conference partially for its sustainability efforts, including its decision to switch to biodegradable bottles earlier in the year. With significant media coverage of the event, Essentially's products will be visible on a global stage.

The event will include two zones: The Blue Zone is for accredited parties, observer delegates, media, and world leaders. It will host formal negotiations across the 2 weeks of the conference, and hundreds of official side events. The Green Zone is a platform for non-accredited delegates, including youth groups, civil society, private sector, and indigenous groups.

Essentially will supply both zones.

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Essentially has secured a significant contract as a preferred supplier to the 2-week long UN Climate Change Conference, to be held in Dubai beginning on November 30. This is the 28th such conference organised by the UN that serves as a main venue for governments, NGOs, international organisations, private sector, and other entities to address issues related to climate change. The event should give Essentially significant exposure as it continues to make strides in the UAE health food market.

Essentially detailed significant progress in its most recent interim results to June 30. During the six-month period, which saw the company float on Aquis, Essentially delivered a 14% increase in operational trading revenue from H1 2022. This revenue growth reflects the company's ongoing retail expansion, with its store footprint increasing by 53%.

Essentially successfully commenced the supply of healthy snacks to prestigious 5-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. One of the key achievements during the period was the improvement in gross profit margins, which rose to 52% compared to the 41% reported for FY22.

Post-period, the company 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.

What earned Essentially the UN Climate Change Conference contract was this robust growth in the UAE, as well as its exceptional sustainability record. As mentioned, the company transitioned to biodegradable bottles earlier in the year. It also partnered with RECAPP by Veolia to recycle over 1,083 kilograms of plastic, reducing CO2 emissions by 2,395 kilograms.

We expect further growth in FY23 as Essentially continues to target the valuable healthy food niche in the growing UAE retail and food service sector, supporting millions of travelers and residents.

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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