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Union Coop distributes 24pc cash dividends for 2019

DUBAI, April 2, 2020

Union Coop, the largest consumer co-operative in the UAE, has distributed 24 per cent cash dividends in addition to 6% return on shareholder purchases and so on for its 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.
 
Chairman Majid Hamad Rahma Al Shamsi said: "The total profit distributed to the shareholders for 2019 amounted to Dh479.02 million, which accounts for 93.4% of the net profit."
 
Union Coop had for the financial year ended December 3, 2019 achieved a net profit of Dh512.88 million, up 10% over 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," remarked Al Shamsi. 
 
He said the General Assembly had 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.
 
“Union Coop maintained a total sales of Dh2.3 billion in 2019,” said Al Shamsi, referring to the profit margin (net profit to sales) reached 24.5 per cent, 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 Dh3.7 billion.
 
“Union Coop maintained its total revenue for the year 2019 of Dh2.349 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 previous year.
 
The shareholders’ equity before profit distribution increased from Dh2.84 billion in 2018 to Dh3.184 billion last year, up 12%, thereby strengthening the financial position of Union Coop and its capability of expansion and development, he added.-TradeArabia News Service 



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