The General Assembly of the Union Cooperative agreed to distribute cash dividends by 24%, and returns on shareholder purchases by 6% for the business of the cooperative for the fiscal year 2019.
According to Emirates News Agency, His Excellency Majid Hamad Rahmah Al Shamsi, Chairman of the Federation’s Board of Directors, said that the total profits distributed to shareholders for the year 2019 amounted to 479.02 million dirhams, and it represents 93.4% of the net profits, indicating that the cooperative achieved net profits for the year 2019, amounting to 512.88 million dirhams , With a growth of 10% over the net profit for 2018, despite the economic challenges and intense competition between companies.
He added: The General Assembly decided this year 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 total sales, reaching 2.297 billion dirhams in 2019, indicating that the net profit margin 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 is 16%, and the cooperative’s assets grew during the year 2019 from 15% to exceed 3.7 billion dirhams.
The Union Coop 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’s cooperative increased to 35,122 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 strengthens the cooperative's financial position and its expansion capabilities.
