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Earnings Report

Union Coop

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Union Coop reported a strong Q1 2026 performance, supported by higher retail and e-commerce sales, stable real estate income, and continued operational expansion across its hypermarket and retail ecosystem in the UAE.

The Coop continued strengthening its retail, e-commerce, and investment property operations while maintaining a strong balance sheet and liquidity position.

2. Financial Performance Snapshot

  • Income from sales of goods: AED 611.6M (+15% YoY)

  • Total income from operating activities: AED 676.2M (+14% YoY)

  • Profit before tax: AED 112.8M (+3% YoY)

  • Net profit after tax: AED 102.3M (+3% YoY)

  • Earnings per share (EPS): AED 0.06

3. Operational Highlights & Key Metrics

  • Retail sales revenue: AED 552.6M

  • E-commerce sales revenue: AED 59.0M

  • Income from other operating activities: AED 56.2M

  • Segment profitability:

    • Retail profit before tax: AED 80.8M

    • E-commerce profit before tax: AED 6.2M

    • Real estate profit before tax: AED 28.5M

  • Balance sheet & liquidity:

    • Total assets: AED 3.82B

    • Total equity: AED 2.72B

    • Cash & cash equivalents: AED 319.4M

    • Inventories: AED 363.0M

    • Trade & other receivables: AED 98.3M

  • Investment properties & assets:

    • Segment assets allocated to real estate: AED 661.3M

    • Property & equipment carrying value: AED 1.98B

  • Operating cash flow generated: AED 177.8M

  • Dividend approved after period-end:

    • Cash dividend: AED 244.4M

    • Return on shareholders’ purchases: AED 36.8M

4. Key Performance Drivers

  • Strong growth in retail and e-commerce sales volumes

  • Stable contribution from investment property and rental operations

  • Improved operational efficiency and inventory management

  • Continued expansion of retail footprint and customer demand

  • Lower marketing expenses partially supporting profitability

  • Higher staff, utility, and depreciation expenses linked to operational expansion

5. Outlook & Forward Guidance

  • Continued focus on:

    • Expanding retail and e-commerce operations

    • Enhancing customer experience and digital capabilities

    • Optimizing inventory and operational efficiency

    • Strengthening recurring real estate and rental income streams

  • Management stated that despite regional geopolitical tensions, no material impact on operations or financial performance was identified as of the reporting date

  • The Coop continues monitoring market developments while maintaining strong liquidity and operational resilience

6. 🧾 Investor Takeaway

Union Coop delivered a solid Q1 2026 with continued growth in retail and e-commerce sales, stable profitability, strong cash generation, and a healthy balance sheet, reinforcing its position as one of the UAE’s leading retail and community-focused cooperative operators.