28 co-op societies earned Dh700 million last year

DUBAI — The 28 cooperative societies operating in the UAE earned a net profit of more than Dh700 million on sales of about Dh2.6 billion for the year 2004.

By Eman Al Baik

Published: Wed 3 Aug 2005, 10:20 AM

Last updated: Thu 2 Apr 2015, 4:11 PM

According to a report on cooperative societies released by the Ministry of Labour and Social Affairs, 82 per cent was the increase in the net profits achieved by societies in 2004. The societies earned Dh 385 million net profit in 2003.

Out of the 28 societies operating in the country, 15 were consumer cooperatives, 10 were involved in fishing, two federation and one in housing.

This high per cent age of increase achieved in the net profit was in spite of the 20 per cent increase in the cost of sales from Dh1.8 billion in 2003 to Dh2.1 billion the next year and an 18 per cent increase in other expenses from about Dh232 million tin 2003 to Dh274 million in 2004. However, the increase in the net profit is was attributed to the 121 per cent increase in the societies' other income from Dh264 million in 2003 to Dh586 million in 2004.

The cooperative societies’ gross profit increased 11 per cent from about Dh353 millions in 2003 to Dh391 million in 2004. The dividends were about Dh224 million in 2003 and Dh243 million in 2004, an 8 per cent increase.

The 15 consumer societies made a total net profit of about Dh687 million in 2004 and dividends paid were about Dh233 million in the same year. The ten fishermen's societies made a net profit of Dh4.2 million last year and dividends were Dh2.7 million

Of the total numbers of societies, nine are operating in Abu Dhabi, six in Dubai, seven in Sharjah, and two each in Ajman and Fujairah and one each in Umm Al Quwain and Ras Al Khaimah.

Last year, the total current capital of these societies was about Dh436 million and the reserves about Dh538 million. The total assets (current and fixed) of these societies were Dh3.5 billion.

The number of shareholders of the cooperative societies increased by six per cent from 29,397 in 2003 to 31,163 in 2004, despite of the reduction in the number of society branches from 78 in 2003 to 70.

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