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Earnings Report

United Foods Company

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

United Foods Company (UFC) reported strong Q1 2026 profitability growth, supported by higher sales volumes, improved gross margins, and continued demand across its cooking oil, ghee, margarine, butter, and food products portfolio across the UAE and regional markets.

The Group continued benefiting from stable regional demand while maintaining strong liquidity, lower borrowings, and operational resilience amid ongoing geopolitical and supply chain uncertainties.

2. Financial Performance Snapshot

  • Revenue: AED 208.3M (+18% YoY)

  • Gross profit: AED 38.0M (+51% YoY)

  • Profit before tax: AED 17.9M (+110% YoY)

  • Net profit: AED 16.3M (+110% YoY)

  • Earnings per share (EPS): AED 0.54 (vs AED 0.26 YoY)

3. Operational Highlights & Key Metrics

  • UAE revenue: AED 157.8M

  • GCC revenue (excluding UAE): AED 26.2M

  • Rest of world revenue: AED 24.3M

  • Cost structure:

    • Cost of sales: AED 170.2M

    • Selling & distribution expenses: AED 13.4M

    • General & administrative expenses: AED 7.9M

  • Balance sheet & liquidity:

    • Total assets: AED 466.6M

    • Total equity: AED 358.7M

    • Bank balances & cash: AED 93.8M

    • Cash & cash equivalents: AED 58.0M

    • Inventories: AED 113.7M

  • Investment portfolio: AED 17.9M

  • Operating cash flow: AED 12.2M

  • Dividend approved after period-end:

    • AED 15.1M

    • Equivalent to AED 0.50 per share

4. Key Performance Drivers

  • Higher sales volumes across UAE and regional markets

  • Significant improvement in gross margins during the quarter

  • Stronger operating leverage supporting profitability growth

  • Improved inventory management and lower financing costs

  • Continued contribution from regional export markets

  • Stable liquidity and reduced bank borrowings strengthening financial position

5. Outlook & Forward Guidance

  • Continued focus on expanding food product distribution across UAE and regional markets

  • Management remains focused on diversified sourcing, pricing controls, and inventory management

  • The Group continues monitoring geopolitical developments, commodity prices, inflation, and supply chain conditions across the region

  • Management stated that no material adverse impact on operations or financial position was identified during the quarter

6. 🧾 Investor Takeaway

United Foods Company delivered a strong Q1 2026 with double-digit revenue growth, sharply higher profitability, improved margins, and stronger cash generation, supported by resilient regional demand, operational efficiency improvements, and stable liquidity across its food manufacturing and distribution operations.