Dubai: On the whole 2011 was another record year for Dubai Refreshments with net revenue increase of 27% that translates to AED 987 million compared to the AED 779 million made in 2010. The growth in revenue was driven by a significant increase in the export business as well as increase in consumer prices in January of 2011, which was a similar move made by other soft drinks producers in the GCC. While local business unit volume declined due to price increase, expansion of exports helped offset this decrease with total unit volume increasing by 7% compared to 2010.
The increase in revenue and unit volumes combined with diligent cost control efforts helped expand DRC's gross and net margins with operating profits more than doubled to AED 126.6 million, a drastic increase compared to the AED 61.4 million of the previous year. Income from investments and interest added another AED 5.0 million bringing total net income to AED 131.6 million a twofold value of the previous year's net income of AED 64.7 million.
The impressive financial results of 2011 are a continuation of the dramatic turnaround of DRC which had begun in 2009 whereby the new Board started implementing major changes in the company. DRC has witnessed profits climbing from a low of AED 14.39 million in 2008 to the astounding 131.7 MM in 2011. This has been achieved despite of a significant increase in raw material and energy prices. Despite the difficult global economic environment, Dubai Refreshments Company is bucking the trend and is presenting strong growth in revenue and earnings.
For the year 2010, DRC paid a cash dividend of AED 0.50 per share in 2011 along with the issuance of 50% bonus shares. This has resulted in increase in share capital from AED 60 million to AED 90 million.
To support its growth, Dubai Refreshments Company continues to invest in capacity expansion and facility renovation. The company announced earlier this year that it had allocated more than AED 500 million for a new state of art manufacturing plant in Dubai Investment Park. The new facility is expected to begin production in 2013 and will be one of the largest and most modern beverage production facilities in the Middle East. The board and the shareholders of Dubai Refreshments Company have authorized this significant investment during a time when other businesses are delaying investment decisions.
DRC board has repeatedly acted to demonstrate great confidence in the business prospects in Dubai and overall UAE. Despite difficult global economic environment, DRC is bucking the trend and is showing strong revenue and earnings growth. The board and the shareholders of DRC have authorized a record investment program at a time when other businesses are delaying investment decisions.
This demonstrates DRC's board and shareholders great confidence in the current and future business prospects of Dubai and UAE as a whole.
Ahmed Al Serkal, Chairman of Dubai Refreshments added, "We believe that Dubai and the UAE's economies are strong, and will continue to have sturdy growth prospects over the long term. We also believe that our location in Dubai with its state of the art infrastructure and central trading position gives us the potential to take advantage of opportunities that will arise in the future and we want to be prepared for these opportunities when they turn up. Our investment program is a reflection of the strength of our belief in Dubai and the UAE. There simply is no better place than Dubai that meets standards where we would invest our money in today's global economic conditions."
-Ends-
About Dubai Refreshments Company (DRC)
Dubai Refreshments (PSC) was established in 1959, and in 1962 it was awarded the sole franchisee and distributor of Pepsi Cola international Product range in Dubai, Sharjah and the Northern Emirates. In 2007 DRC became a publically listed company in the DFM.
DRC has remained at the forefront of the UAE refreshments industry, continually expanding through major investment in the latest bottling technology complemented by the highest levels of Quality Management.
For more information regarding this press release, please contact:
Mr. Eyad Al Badda
00971 50 8946650
00971 4 3448807
eyad@mediumr.com
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