Union Coop

1. Company Overview & Earnings Context

Union Coop is a Dubai Financial Market (DFM)-listed cooperative whose principal activity is establishing and managing hypermarkets across the UAE. Its operations are organized across three main segments: Retail, E-commerce and Real Estate. During H1 2026, Union Coop delivered solid top-line growth, with sales of goods increasing by more than 10% year-on-year and total operating income approaching AED 1.3 billion. Profitability remained broadly stable despite higher cost of goods, depreciation, utilities and other operating expenses.

2. Financial Performance Snapshot

• Income from Sales of Goods: AED 1.14 Billion (+10.6% YoY)

• Total Income from Operating Activities: AED 1.27 Billion (+9.9% YoY)

• Profit Before Tax & Community Responsibility Expenses: AED 195.43 Million (-1.5% YoY)

• Profit Before Tax: AED 191.29 Million (-0.4% YoY)

• Net Profit: AED 173.70 Million (+0.1% YoY)

• Earnings Per Share (EPS): AED 0.10 (Unchanged YoY)

Compared with H1 2025:

• Income from sales of goods increased 10.6% from AED 1.03 billion to AED 1.14 billion.

• Total income from operating activities increased 9.9% to AED 1.27 billion.

• Profit before tax and community responsibility expenses declined 1.5% to AED 195.43 million.

• Profit before tax declined marginally by 0.4% to AED 191.29 million.

• Net profit remained broadly stable, increasing 0.1% to AED 173.70 million.

• Earnings per share remained unchanged at AED 0.10.

3. Operational Highlights & Key Metrics

• Total Assets: AED 3.55 Billion

• Total Equity: AED 2.51 Billion

• Net Cash Generated from Operating Activities: AED 248.48 Million

• Bank Balances & Cash: AED 83.46 Million

• Retail Sales: AED 1.02 Billion

• E-commerce Sales: AED 115.79 Million

• Real Estate Operating Income: AED 98.43 Million

• Capital Expenditure: AED 19.76 Million

• H1 Operating Cash Flow Growth: +11.7% YoY

4. Key Performance Drivers

Union Coop's H1 2026 growth was primarily supported by stronger retail and e-commerce sales. Net retail sales increased to AED 1.02 billion from AED 950.25 million, while e-commerce sales jumped to AED 115.79 million from AED 80.79 million, representing growth of approximately 43.3%. Real estate also contributed AED 98.43 million in other operating income. However, higher cost of goods, depreciation, utility, repair and maintenance, and other expenses limited the conversion of stronger revenue into earnings growth, leaving net profit broadly flat year-on-year.

5. Outlook & Forward Guidance

Union Coop did not provide specific quantitative guidance for the remainder of 2026. Management stated that the business does not experience material seasonality and that revenue and profits are expected to remain consistent throughout the period. Management also assessed the impact of geopolitical tensions in the Middle East and concluded that there had been no significant adverse impact on Union Coop's operations, financial performance, liquidity or cash flows as of the reporting date.

6. Investor Takeaway

Union Coop delivered a stable H1 2026 performance, combining 10.6% sales growth with broadly unchanged net profitability. Particularly notable was the strong expansion of its e-commerce business and an 11.7% increase in operating cash flow to AED 248.48 million. While higher operating costs constrained earnings growth, Union Coop maintained a substantial AED 2.51 billion equity base and continued generating healthy cash from its core operations.