United Foods Company

1. Company Overview & Earnings Context

United Foods Company (PSC) is a Dubai Financial Market (DFM)-listed food manufacturing company primarily engaged in the manufacturing, processing and marketing of vegetable ghee, cooking oil, margarine, butter products and fats, alongside the trading of food and non-food products. During H1 2026, the Group delivered strong top-line and earnings growth, with revenue rising sharply and net profit nearly tripling compared with the prior-year period. The UAE remained its largest market, contributing AED 376.50 million of H1 revenue.

2. Financial Performance Snapshot

• Revenue: AED 479.05 Million (+48.9% YoY)

• Gross Profit: AED 79.03 Million (+76.8% YoY)

• Operating Profit*: AED 35.74 Million (+235.1% YoY)

• Profit Before Tax: AED 38.36 Million (+183.2% YoY)

• Net Profit: AED 34.92 Million (+183.0% YoY)

• Earnings Per Share (EPS): AED 1.15 (+180.5% YoY)

Compared with H1 2025:

• Revenue increased 48.9% to AED 479.05 million.

• Gross profit increased 76.8% to AED 79.03 million.

• Operating profit increased approximately 235.1% to AED 35.74 million.

• Profit before tax increased 183.2% to AED 38.36 million.

• Net profit increased 183.0% to AED 34.92 million.

• Earnings per share increased from AED 0.41 to AED 1.15.

*Operating profit is calculated as gross profit less selling & distribution and general & administrative expenses.

3. Operational Highlights & Key Metrics

• Total Assets: AED 492.44 Million

• Total Equity: AED 362.57 Million

• Inventories: AED 156.91 Million

• Trade & Other Receivables: AED 167.78 Million

• Bank Balances & Cash: AED 65.33 Million

• UAE Revenue: AED 376.50 Million

• GCC Revenue Excluding UAE: AED 49.78 Million

• Rest of World Revenue: AED 52.76 Million

• Dividend Paid: AED 0.50 Per Share, totaling AED 15.13 Million

4. Key Performance Drivers

United Foods Company's H1 2026 earnings growth was primarily driven by significantly higher sales combined with stronger gross profitability. Net revenue increased to AED 479.05 million from AED 321.76 million, while gross profit expanded to AED 79.03 million from AED 44.70 million. Geographically, UAE revenue increased strongly to AED 376.50 million from AED 241.19 million, while revenue from other GCC markets and the rest of the world also increased year-on-year.

5. Outlook & Forward Guidance

The financial statements do not provide specific quantitative full-year 2026 guidance. Management noted that ongoing geopolitical conditions in parts of the Middle East could create risks through commodity-price volatility, supply-chain disruption, inflation and logistics challenges. However, its assessment found no material adverse impact on the Group's manufacturing, processing or distribution activities during H1 2026. Management continues to mitigate these risks through diversified sourcing, inventory management, pricing controls and business continuity measures.

6. Investor Takeaway

United Foods Company delivered a strong H1 2026 performance, with nearly 49% revenue growth translating into significantly faster growth in gross profit and net earnings. Net profit almost tripled year-on-year, while EPS increased to AED 1.15. The combination of strong UAE sales growth, improved gross profitability and a solid equity position highlights a materially stronger first-half earnings performance, although operating cash flow was negative during the period as inventories and receivables increased.