Union Coop, the largest consumer co-operative in the UAE, said it has registered a net profit of Dh284.6 million ($77.4 million) for the first half of 2019, up 20 per cent over the last year’s figures of Dh237.7 million ($64.7 million).
Announcing the results for the first six months, Union Coop said the increase in net profit was parallel to its effort to reduce the prices of its products. The price cuts on products for the first half amounted to Dh268.5 Million, which is 18.63% more price reductions compared to the same period last year.
“It has beeen achieved as a result of products price reduction and promotions we released to reduce the burden on consumers and guide the market to reduce the prices as well, as Union Coop became an influencer in the retail market prices,” remarked CEO Khalid Humaid Bin Diban Al Falasi.
Al Falasi attributed the solid results to the efforts of Union Coop Board and its executive management at all levels.
“The strong performance in the first half of 2019 is due to the extensive efforts of the Board of Directors, in addition to the diligent efforts deployed by the executive management and employees at all levels, divisions, departments and sections, who aim to reach the top position in all spheres through deliberate planning, careful implementation, perseverance and determination,” he remarked.
“This performance reflected positively on consumers in terms of price cuts of 18.63% and on shareholders in terms of higher profits by 20%,” he added.
Union Coop’s total revenue for the first half surged 1.6% to hit Dh1.452 billion from Dh1.429 billion the previous year.
Al Falasi pointed out that Union Coop played a key role in supporting the nation’s economic growth and development as evident from the financial performance of 2019 first half, which exceeded expectations despite the economic challenges afflicting the retail market.
“The growth of profit coincided with a significant reduction in expenses as well,” he stated.
“The total cost and expenses showed a decline of 2% in form of Dh23.591 million, from Dh1.191 billion in 2018 to Dh1.168 billion in 2019,” he added.