Union Coop Reports Financial Performance for H1 2024
Dubai, UAE: August 09, 2024:
Union Coop has announced its financial results for the first half of 2024, demonstrating a 5% increase in semi-annual revenues compared to the previous year. The cooperative achieved a 32.3% growth in net profits and expanded profit margins across its various sectors.
The cooperative’s Board of Directors has released the semi-annual results following strong performance in both business operations and sales. For the first half of 2024, Union Coop reported profits of AED 200 million, reflecting a 32.3% increase compared to the same period last year. This growth is attributed to strategic initiatives that enhanced profitability and revenue.
Operationally, Union Coop saw a significant increase in its customer base, with 612,000 downloads of its mobile app by mid-year. The loyalty program now has 990,079 cardholders. Additionally, Union Coop opened a new branch within the Silicon Oasis commercial center, expanding its footprint and service capabilities.
Total revenue for the first half of 2024 increased by 5% to AED 1.282 billion, driven by sales growth across Dubai branches. Retail revenue grew by 3% to AED 1.135 billion, while investment sector revenue saw a 10.6% increase, reaching AED 79 million. Profits rose by 32.3% to AED 200 million, with pre-tax profit margins standing at 16% of total revenue. Net profit after tax increased by 20.6% to AED 163 million, factoring in new corporate taxes amounting to AED 18.6 million.
Community Contributions: Union Coop’s spending on community initiatives reached AED 12 million, up from AED 9 million in the same period last year, underscoring its commitment to social, educational, security, and charitable activities.
H.E. Majid Hamad Rahma Al Shamsi, Chairman of Union Coop, commented on the results, noting significant improvements in operational and strategic execution. He emphasized that the results reflect Union Coop’s ongoing development and commitment to leading the consumer cooperative sector in the country.
Mr. Mohamed Al Hashemi, CEO of Union Coop, highlighted the cooperative’s focus on operational excellence and strategic growth. He acknowledged the team’s efforts and stressed the importance of continuing to expand market leadership and competitiveness. He also noted the challenges of maintaining success in a competitive sector and assured that Union Coop will persist in innovating and exploring new markets to meet shareholder and customer expectations.
