Union Co-operative posts Dh63.5m profit for 2002

Helped on by a solid 17.3 per cent gain, Dubai-based Union Co-op recorded a net profit of Dh63.5 million for 2002 on sales of Dh435 million, which recorded a year-on-year growth of 10 per cent. The corresponding figures for 2001 were Dh54.1 million and Dh393 million.

Dividends were set at Dh39.5 million, up from Dh33.5 million the year before. At the shareholders' meeting yesterday, Union Co-op also held elections to fill the nine positions on the board of directors.

In a spirited show of shareholder commitment, over 40 nominations were received for the posts as the process went on long into the evening.

Long queues of shareholders were seen at the counters put up at the Dubai Chamber of Commerce and Industry premises, filing their choices for the various candidates.

According to many shareholders, this has been unprecedented in the co-operative's 21-year history. At the time of going to press, the new board of directors was yet to be named.

By end 2002, Union Co-op had a shareholder base of 8,050. Shareholders' equity as of end last year was Dh120.5 million, up from Dh105 million in 2001.

During 2002, shareholder purchase totalled Dh260.3 million through a near 20 per cent increase. With an expanded branch network, Union Co-op has been able to develop deep roots among its consumer base.

Meanwhile, in an overview of the co-operative movement, Faraj Fadel Al Mazroui, head of the board of directors, commented: "It is time to unify the world of all societies under the umbrella of one body. The merging of institutions will be performed to provide more services and expand the societies effective distribution in all markets.

"Such a process of integration would increase the capability of societies to import in such a way as to reduce prices to the benefit of all customers. It is undoubtedly that such buying power will represent an important point in negotiating the purchase of any product or commodity."