Union Coop announces 24 per cent cash dividend
This was declared at the 38th general assembly meeting held online using a remote-attendance and voting system for the very first time
The General Assembly of Union Coop — the largest consumer cooperative in the UAE, announced the distribution of 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 was declared at the 38th general assembly meeting held online using a remote-attendance and voting system for the very first time.
Majid Hamad Rahma Al Shamsi, Chairman of Union Coop said: “The total profit distributed to the shareholders for the year 2019 amounted to Dhs479.02 million, and it accounts for 93.4% of the net profit,” explaining that “Union Coop achieved a net profit of Dhs512.88 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 organisation performance.
“Union Coop maintained a total sales of Dhs2.297 billion in the year 2019,” said Al Shamsi, referring to the profit margin (net profit to sales) that 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 Dhs3.7 billion.
“Union Coop maintained its total revenue for the year 2019 of Dhs2.349 billion, while the total expenses decreased by 2.4%,” added Al Shamsi.
“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 Dhs2.840 billion in 2018 to Dhs3.184 billion in 2019, which is an increase of 12%, thereby strengthening the financial position of Union Coop and its capability of expansion and development.
On Union Coop’s role in Community Contribution and Social Service, Al Shamsi said: “In 2019, Union Coop spent about Dhs34.93 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.”
Regarding Emiratisation, 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 Emiratisation 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.”
However, it recently announced that all of its branches will operate 24x7, with exceptions of Al Mamzar, Al Mizhar Mini Coop, Coop the Pointe, Al Satwa and International City. This step is as a response to the decision of The Ministry of Health and Prevention, and National Emergency Crisis and Disaster Management Authority, explaining that consumers can now shop any time — day or night as per their convenience.
Dr. Suhail Al Bastaki, Director of Happiness and Marketing Department in a statement said “Union Coop branches will operate 24 hours a day, 7 days a week, starting from Thursday, March 26 to ensure that the goods are provided to the community smoothly, in response to the directives of the concerned authorities in order to overcome the Corona pandemic,” Al Bastaki stresses that all goods are available throughout the day and there is no need for the consumers to rush, as the strategic cooperative plans guarantee to consumers the availability of all products in huge quantities and throughout the year, indicating that there is absolutely no need to fear that the products will run out of stock because the cooperative and retail outlets in the country in cooperation with the competent authorities worked over the past years to build a national food stock, as well as preparing resource sustainability plans.