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Earnings Report

Emirates Reem Investments Company

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Emirates Reem Investments Company P.J.S.C reported a Q1 2026 net loss despite strong revenue growth, as fair value losses on financial investments and higher operating expenses weighed on profitability during the quarter. The Group operates across mineral water bottling, plastic manufacturing, beverages, tissues, snacks, cereals, coffee, dates, and juice trading activities across the UAE and export markets.

The company also continued expanding warehouse leasing operations and corporate investment activities during the quarter.

2. Financial Performance Snapshot

  • Revenue: AED 72.7M

  • Gross profit: AED 10.3M

  • Operating loss: AED 387.6K

  • Finance income: AED 687.6K

  • Fair value loss on investments: AED 5.78M

  • Net loss for the period: AED 5.52M

  • Net loss attributable to shareholders: AED 5.36M

  • Basic & diluted loss per share: AED (0.0167)

Compared to Q1 2025:

  • Revenue increased from AED 38.0M to AED 72.7M

  • Gross profit declined slightly from AED 10.6M to AED 10.3M

  • Net profit of AED 235K in Q1 2025 shifted to a net loss of AED 5.52M in Q1 2026

3. Operational Highlights & Key Metrics

  • Total assets: AED 427.9M

  • Total equity: AED 353.4M

  • Cash & bank balances: AED 104.2M

  • Cash & cash equivalents: AED 32.9M

  • Trade & other receivables: AED 148.7M

  • Inventories: AED 18.2M

  • Investment at FVTPL: AED 19.5M

  • Investment at FVTOCI: AED 2.02M

Additional highlights:

  • UAE revenue reached AED 52.6M

  • Export revenue increased significantly to AED 20.1M

  • New warehouse lease agreements increased right-of-use assets to AED 14.5M

  • Trade receivables increased to AED 81.0M

4. Key Performance Drivers

  • Strong growth in beverage, trading, and export sales supported revenue expansion

  • Fair value losses on listed equity investments significantly impacted profitability

  • Higher selling, distribution, and administrative expenses pressured margins

  • Export business contribution increased substantially compared to Q1 2025

  • Increased receivables and supplier advances impacted working capital

The Group also recorded:

  • AED 5.78M fair value loss on quoted equity investments

  • AED 20M settlement received from a related party during Q1 2026

  • AED 11.76M increase in right-of-use assets linked to new warehouse leases

5. Outlook & Forward Guidance

  • Continued focus on expanding beverage distribution and export markets

  • Ongoing development of warehouse leasing and logistics operations

  • Management continues monitoring regional geopolitical developments and market volatility

  • The company remains focused on operational expansion, inventory management, and working capital optimization

  • ERC continues assessing recovery of long-outstanding related party balances

Management also disclosed that geopolitical tensions after the reporting period were assessed as non-adjusting events and had not materially impacted operations or financial position up to the approval date of the financial statements.

6. 🧾 Investor Takeaway

ERC delivered strong revenue growth in Q1 2026 driven by expanding domestic and export operations, although fair value losses on financial investments and higher operating costs resulted in a quarterly net loss.