DUBAI, Union Coop, reported a 20% growth in net profit for the first half of 2019, compared to the previous year. The net profit for 2018 was AED 237.7 Million, whereas 2019 reported AED 284.6 Million net profit, which is a surge of AED 46.9 Million.
Commenting on the latest revelation, the CEO of Union Coop Khalid Humaid Bin Diban Al Falasi said, "The increase in net profit was parallel to Union Coop's effort to reduce the prices of its products. The price reductions on products for the first half of the year amounted to AED 268.5 Million, which is 18.63% more price reductions compared to the same period of the previous year of 2018. 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."
Al Falasi attributes Union Coop's performance to the efforts of Board of Directors and Executive Management at all levels "Union Coop's 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. 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 stressed that "Union Coop plays 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."
Union Coop's total revenue reported a growth of 1.6% i.e. from AED 1.429 Billion in the first half of 2018 to AED 1.452 Billion in 2019, signifying an improvement of AED 23 Million.
The growth of profit coincided with a significant reduction in expenses as well, as Al Falasi points out: "The total cost and expenses showed a decline of 2% in form of AED 23.591 Million, from AED 1.191 Billion in 2018 to AED 1.168 Billion in 2019," Al Falasi credits this improvement was a result of creative ideas which reduced costs while maintaining the efficiency of performance.
"All this was possible due to Union Coop's interest in achieving the aspirations of the wise leadership led by President His Highness Sheikh Khalifa bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to achieve a sustainable national economy," concluded Al Falasi.
Source: Emirates News Agency