FOODCO Sets Up US$9 Million Subsidiary

The Abu Dhabi National Foodstuff Company (Foodco) announced that it has established a new subsidiary with a capital of US$ 9 million to focus on catering to the restaurants, hotels and other retailers in the hospitality sector.

The decision was taken at the Foodco board meeting held recently. The board has also decided that Foodco will hold 50% stake and 50% of the shares will be offered to the existing Foodco shareholders.

"The new operations are projected to generate an additional turnover of between 35 to 39% annually that will add to our already vigorous bottom line. We hope this will bring further improvement to our profitability," said Foodco’s Managing Director and Member of the Board of Directors, Ahmed bin Ali Khalfan Al Dhahery.

"Foodco’s newly established entity will create synergy with our already established operations in the foodstuff sector. Our company is one of the leading suppliers of foodstuff and other products in the region. We are sure our new endeavour will enhance value for our shareholders, who are our strength," he said.

Five people have been assigned to handle the management of the new company of which two are existing Foodco employees and three will be recruited shortly.

It is projected that after three years, the new company will transform into a public shareholder company & the price of one stock will be between 5 to 6 Dirhams.

Foodco's projected net profits for the third quarter of this year are expected to increase by over 34% to more than AED 100 million, over Q2 2005 results and are expected to continue this growth till the year end.

Today, Foodco is one of the most sought after scrips in the UAE Stock Exchange, with a group of satisfied shareholders. More than the financial strength, Foodco's credibility in the market is indicative of the company's real success as a corporate entity.

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