14 June 2015
AMMAN -- Earnings generated by the Arab International Food Factories and Investment Company
amounted to JD790 during the first quarter of this year.
During the first quarter of last year, the company generated JD300.
In both periods, the firm's losses came at JD0.4 million after accounting for administrative and general expenses, benefits to employees, and depreciation.
These figures, seemingly strange and dismal, are not really reflective of the company's strength, broadness and scope of business.
According to the 20th annual report, Arab International Food Factories and Investment Company achieved JD2 million net profit last year, 53.8 per cent higher than the JD1.3 million posted in 2013.
The board of directors mentioned in the annual report, disclosed to the Jordan Securities Commission, that the main objective of Arab International Food Factories and Investment is producing baby food and investment, but the company is now concentrating its business only on investment.
Reflecting this concentration, the report showed that only three employees work at the company whose capital investment as of December 31, 2014 stood at JD252,628.
"As the company has no activity other than investment in shares, it is very difficult to specify its competitive situation in this sector," the report said.
"The firm's activity is also limited to the local market and does not have any functions outside Jordan," it added.
Chairman Abdullah Abu Khadija, who owns a 27.9 per cent stake in the company, wrote in the report's foreword that 2014 was a good year for the company as the noticeable increase in earnings, compared to 2013, reflected positively on the profit.
The report also listed Abu Khadijeh as chairman of the Arab International Company for Education and Investment, which is among the major shareholders in the Arab International Food Factories and Investment with a 46 per cent stake.
He expressed hope that the profit would be raised in 2015 in order to enhance the firm's financial position.
The report showed that the company's profits rose steadily from JD0.5 million in 2010 to JD1 million in 2011 and then to JD1.2 million in 2012.
Shareholders also benefited from cash dividends as they received JD1.3 million each year in 2014 and 2013 at a rate of 12 per cent.
In preceding years, shareholders received JD0.7 million in cash dividends at a rate of 7 per cent, JD0.8 million at a rate of 8 per cent; and JD1 million at a rate of 10 per cent.
According to the balance sheet at the end of last year, the financial assets at fair value amounted to JD35.1 million and investments in affiliated companies totalled JD0.5 million out of JD36 million in total assets.
Of the JD35.1 million, JD33.8 million is the fair value of shares listed on the Amman Bourse and JD1.3 million are investments in non-listed shares of limited liability companies.
At the end of the previous year, financial assets at fair value amounted to JD29.4 million and investments in affiliated companies totalled JD0.4 million out of JD30.1 million in total assets.
Net value of property and equipment was JD0.2 million in both years.
Shareholders equity comprised JD10 million capital, JD21.1 million as a reserve for the fair value of financial assets, JD3 million in retained earnings, and JD1.4 million in mandatory reserve.
According to the board of directors' report, Abdullah Abu Khadija is also chairman of Ibn Al Hayatham Hospital, Al Ittihad Schools, and First Finance Company, all of which are public shareholding companies listed on the Amman Stock Exchange.
In addition, Abu Khadija heads the administration board of Al Omana'a Portfolio and Investment Company which operates as a brokerage firm at Amman Bourse.
© Jordan Times 2015