The General Assembly of the Union Cooperative – the largest consumer cooperative in the country – approved distributing 24% cash dividends, in addition to distributing 6% return on shareholders ’purchases for the year 2019.
This came during the thirty-eighth ordinary general assembly meeting, which was held using the technique of electronic presence and electronic voting for the first time.
Majed Al Shamsi, Chairman of the Board of Directors of “Union Cooperative”, said that the total profits distributed to shareholders for the last year amounted to 479.02 million dirhams, and it represents 93.4% of the net profits, indicating that the cooperative achieved a net profit of 512.88 million dirhams, a growth of 10% over the net profit for 2018 Despite economic challenges, intense competition between companies, 2019 price cuts of 2018 by more than 10% and offers of excellence cards by 6%.
He added that the general assembly this year decided not to distribute bonus shares, in order to preserve the profitability of shareholders ’shares and enhance their market value in a way that is in the interest of shareholders and contributes to linking the share price to institutional performance.
He pointed out that the cooperative maintained a total sales of 2.297 billion dirhams in 2019, noting that the profit margin (net profit to sales) reached 24.5%, which is the highest rate since 2014, and the return on capital (net profit to capital) reached 29 The return on equity (net profit to equity) is 16%, and the cooperative’s assets during 2019 grew from 15% to exceed 3.7 billion dirhams.
“The Union cooperative maintained its total total revenue for the year 2019 as it reached 2.349 billion dirhams, while the total total expenses decreased by 2.4%.
He pointed out that the number of shareholders in the Union cooperative increased to 35 thousand 112 shareholders by the end of 2019, with a growth rate of 4.7% compared to 2018, noting that the shareholders ’rights before distributing profits increased from AED 2.840 billion in 2018 to 3.184 billion dirhams in 2019, an increase of Its amount is 12%, which enhances the strength of the cooperative’s financial position and its capabilities for expansion, expansion and development.
On societal contributions and the role of the union’s cooperative, Al Shamsi said that the cooperative spent during 2019 on community contributions about 34.93 million dirhams, in line with its strategy of excellence in providing social services, emphasizing its role in community service and participation in social development and advancing development in the country.
Concerning Emiratization, he stated that the number of citizens in the Union cooperative reached 423 employees and employees at the end of 2019, with a growth rate of 31% compared to 2018, where the Emiratisation percentages achieved by it are among the highest rates of Emiratisation in the private sector, explaining that the cooperative strategy aims to maintain and develop citizenship cadres .