United Foods Company Reports Strong FY-2024 Performance

by News Desk 2 months ago Retail United Foods Company

Board of Directors proposes 100% cash dividend of paid-up capital, reflecting robust performance and dedication to consistent returns to shareholders.

United Foods Company (PSC) (DFM: UFC), a prominent food manufacturing and distribution company based in the UAE, released its full-year financial results for the period ending 31 December 2024. Despite challenges stemming from geopolitical instability and escalating costs, the company demonstrated strong growth in both revenue and profitability, affirming its robust financial and market standing. This performance is a testament to the successful execution of its long-term strategic development plans.

Revenue and Profit Growth

United Foods achieved a record-breaking total revenue of AED 601.7 million, marking a significant milestone for the company. This growth was largely driven by a 5.9% increase in sales volumes, showcasing the company’s ability to navigate market complexities and sustain demand for its products. Additionally, gross profit saw an 8% increase, reaching AED 99.6 million, benefiting from enhanced cost management, optimized procurement processes, and improvements in product offerings.

Profitability and Net Profit Performance

The company’s profitability continued to strengthen, with net profit before tax rising by 11%, totaling AED 33.9 million. Net profit after tax remained stable at AED 30.8 million, highlighting the company's ability to maintain consistent bottom-line performance despite external challenges.

Proposed Dividend for Shareholders

In line with its strong financial performance, the Board of Directors has proposed a cash dividend of AED 1 per share, amounting to a total of AED 30.25 million for 2024. This represents 100% of the company’s paid-up capital and is one of the highest dividend payouts in the UAE market. The proposal, subject to shareholder approval at the upcoming Annual General Meeting, underscores United Foods' commitment to delivering value to its shareholders. The company stands as one of only three firms in the UAE to suggest a 100% cash dividend payout.

Fethi Khiari, Chief Executive Officer at United Foods Company, commented, “In all, 2024 was a milestone year of achievement for United Foods. We increased sales volumes and revenue, protected margins, continued to deliver dynamic, high-quality products and diversified our product portfolio to better delight our customers. These key initiatives have enabled us to reinforce our robust position in the UAE and in all the markets we serve.”

“I am pleased to announce that under the recommendation of the Board, there will be a 100% cash dividend of the paid-up capital for 2024 in line with our sustainable and progressive dividend policy, at our Annual General Meeting. We would like to thank our shareholders for their continued support and trust in us.”

“Looking ahead, we remain dedicated to our strategic path that will enhance value for our shareholders, as we continue to scale our operations and invest in automation and efficiency. Our commitment to Emiratization remains core to our corporate vision, and we are proud to be building a business that is both future-fit and locally rooted.”

Strategic Investments in Capital Expenditure

Throughout 2024, United Foods invested AED 12.8 million in capital expenditures, with a primary focus on the installation of advanced production equipment. This included the setup of a fractionation unit and a PET blowing machine to produce eco-friendly, biodegradable bottles. These investments are expected to enhance the company's production capabilities while aligning with sustainability goals.

Operational Excellence and Financial Outlook

United Foods maintained a sharp focus on cost efficiency and managing working capital throughout the year. The company’s total assets grew to AED 439.4 million, and equity rose to AED 344.5 million. In addition to these financial improvements, the company continued to invest in upgrading its manufacturing processes and integrating digital technologies to maintain its competitive edge in the long term.

Commitment to National Priorities and Emiratization

As part of its strategic vision, United Foods has made significant strides in supporting the UAE’s national priorities, including food security and Emiratization. The company has launched initiatives to further promote Emiratization within its workforce, aiming to attract and retain skilled local talent. These efforts are integral to the company’s broader commitment to contributing to national development.

Focus on Sustainability and Regional Expansion

Looking ahead, United Foods is committed to expanding its regional distribution network, enhancing product innovation, and deepening its environmental, social, and governance (ESG) practices. The company remains dedicated to creating long-term sustainable value for all its stakeholders, positioning itself for continued growth and success in the years to come.

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