During the Annual General Assembly meeting 38- Fiscal year 2019
Dubai, United Arab Emirates, April 02, 2020: The General Assembly of Union Coop – the largest Consumer Cooperative in the UAE, distributed dividend at 24%, in addition to 6% return on shareholder purchases and so on for the Union Coop business for the fiscal year 2019. This announcement was made during the 38th General Assembly meeting, which was held online using a remote-attendance and voting system for the very first time.
H.E. Majid Hamad Rahma Al Shamsi, Chairman of Union Coop said: “The total profit distributed to the shareholders for the year 2019 amounted to AED 479.02 Million, and it accounts to 93.4% of the net profit, explaining that Union Coop achieved a net profit of AED 512.88 Million, which is a 10% growth compared to the net profit of the year 2018. We achieved this result despite economic challenges, stiff market competition between companies, with more than 10% price reduction in 2019 from 2018, in addition to 6% reductions due to Tamayaz card offers.”
Al Shamsi further added: “The General Assembly this year decided not to distribute bonus shares, to preserve the profitability of shares and strengthen their market value, in a way that works in the best interest of the shareholders and contributes to link the market value of the shares to the organization performance.”
2019 Total Sales – AED 2.3 Billion
“Union Coop maintained a total sales of AED 2.297 Billion in the year 2019,” said Al Shamsi, referring to the profit margin (net profit to sales) reached 24.5%, which is the highest rate since 2014, while the return on capital (net profit to capital) reached 29% and the return on equity (net profit to equity) 16%. The Union Coop assets grew during the year 2019 by 15% to exceed AED 3.7 Billion.”
“Union Coop maintained its total revenue for the year 2019 of AED 2.349 Billion, while the total expenses decreased by 2.4%,” added Al Shamsi.
35, 000 Shareholders
“The number of shareholders in Union Coop increased to 35, 112 by the end of 2019, with an increase of 4.7% compared to the year 2018,” said Al Shamsi, noting that the shareholders’ equity before profit distribution increased from AED 2.840 Billion in 2018 to AED 3.184 Billion in 2019, which is an increase of 12%, thereby strengthen the financial position of Union Coop and its capability of expansion and development.
AED 34.93 Million in Community contributions
On Union Coop’s role in Community Contribution and Social Service, Al Shamsi said: “In 2019, Union Coop spent about AED 34.93 Million on community contributions, in line with Union Coop’s strategy of excellence in providing social services and confirming our role in serving the community. Additionally, participating in the social development and advancement of the community.”
Regarding Emiratization, he stated, “The number of Emiratis working in Union Coop by the end of 2019 reached 423 employees, with an increase of 31% compared to 2018. The Emiratization percentage achieved by Union Coop is among the highest rates in the private sector,” explaining that Union Coop’s strategy aims to retain and develop national cadres.”