Posted on March 27, 2014

The Board of Directors of Al Meera Consumer Goods Company (Q.S.C.) held its Annual General Assembly Meeting on Wednesday 26 of March 2014 at Regency Halls in the presence of H.E. Abdulla Bin Khaled Al-Qahtani, Chairman of the Board of Al Meera, as well as board members, shareholders, and investors. The AGM discussed the following agenda:

  1. Chairman’s message.
  2. Heard and approved the Board’s Report and the Corporate Governance Report for the year ended 31st of December 2013 and discussed and approved the Company’s future business plans.
  3. Heard the External Auditor’s Report for the year ended 31st of December 2013.
  4. Discussed and approved the Company’s financial statements for the year ended 31st of December 2013.
  5. Discussed and approved the Board of Directors’ recommendations for the distribution of cash dividends of QR (8) per share which is equivalent to 80% of the nominal share value for the year 2013.
  6. Adopted the Corporate Governance Report.
  7. Discharged the Board members from liabilities and determined their remuneration for the year ended 31st of December 2013.
  8. Appointed external auditors for the year 2014 and determined their fee.

‘On behalf of the Board of Directors, I am honored and pleased to present to you, our valued shareholders, Al Meera Group’s Annual Report for the year ended December 31, 2013, which has been a year of respectable growth and achievements. The year 2013 has continued to witness growth of the Company’s store space, sales and net profits’, HE Abdulla Bin Khalid Al Qahtani, Chairman of Al Meera Consumer Goods (QSC) Board of Directors said.

‘New branches added in Qatar during the year have increased our store space by approximately 4,100 SqM. Sales for the year 2013 have increased by 29.4% from QAR 1,503.5 million in 2012 to QAR 1,946.0 million, and net profit attributable to owners of the Company, by 85.4% from QAR 105.8 million to QAR 196.1 million, inclusive of QAR 71.4 million net gain on expropriation of land and building in Al Khor’, HE added.

2013 achievements

Speaking about 2013 achievements, HE the Chairman of Al Meera said: ‘The beginning of 2013 saw the inauguration of Al Meera’s first Géant Hypermarket at Hyatt Plaza which is the culmination of an agreement signed between Al Meera Holding Company (L.L.C.) and French retailer Casino to develop a network of hypermarkets and supermarkets under the Géant banners in selected Middle East countries. The opening of the Géant Hypermarket is in line with our commitment to all our stakeholders to provide high quality and diverse product offerings for our customers’.

HE continued: ‘Fulfilling Al Meera’s pledge to the communities all over Qatar, Al Meera has successfully opened two new neighborhood malls – Nuaija Mall and Lqutaifiya Mall – and three convenience stores located in Sealine, Beverly Hills 3, and Barwa Messaimeer, during the year. Nuaija Mall, built to international and stringent specifications, has been outfitted with Al Meera’s new interior design to allow for and create a more convenient and memorable shopping experience. The new Al Meera’s store in Nuaija (2,000 SqM) reconfirms our promises to our shoppers to deliver a breadth of fresh food offerings, while adhering to the strict international standards to ensure product freshness and quality’.

‘Al Meera’s store (850 SqM) in Lqutaifiya Mall was opened in November 2013. Also outfitted with the latest interior design and lighting system, the new look and design of the mall has attracted the attention of many well-known national and international retailers and restaurant operators who have expressed desire to partner with Al Meera in this and all its future malls. This store is the first Al Meera store to stay open 24/7. We continue to attract important partners to serve our communities’, HE Abdulla Bin Khalid Al Qahtani, Chairman of Al Meera Consumer Goods (QSC) Board of Directors noted.

He also mentioned that ‘Al Meera’s new permanent convenience store at Sealine is located at the entrance of Sealine Resort. After three years of having only a seasonal winter camp store at Sealine, this new store will now serve campers and visitors to the area all year round’.

Expansion plan for 2014

Talking about the construction of new stores and malls, HE said ‘Al Meera has 9 malls currently under construction and 1 leased store under fit out. The construction of the 9 malls and fit out of the 1 store are scheduled to complete in 2014. When completed, they will increase our store space by another 18,000 SqM. A further 15 malls totaling approximately 32,500 SqM are under plan for construction within the next 2 to 5 years throughout Qatar’.

‘The strategy is to double the store space to over 100,000 SqM when all these malls become operational .All these new malls will be built to stringent international specifications and outfitted with the latest interior design and lighting system, and will have the “look and feel” similar to that of Lqutaifiya Mall’, he added.

On the regional level, HE said ‘The acquisition of 5 stores (3 hypermarkets and 2 supermarkets) in Oman was completed in February 2013. The stores, with store space totaling approximately 15,400 SqM are located in Azaiba, Barka, Al Kuwair, Sohar and Al Falaj, of which, Azaiba (5,100 SqM) is the largest. The renovation and refurbishment of Azaiba was completed in November 2013 with plans to renovate another 3 stores this year to bring these stores to the same level of quality as the new Al Meera’s stores in Qatar.’

‘To fund these expansions, the Board of Directors proposed in May 2012 to increase the Capital of the company from 10,000,000 shares to 20,000,000 shares through a rights issue. This was approved by the shareholders on October 8, 2012. The 10,000,000 shares were issued and called up at QR 95.00 per share on March 25, 2013. The Rights Issue was oversubscribed by 140%’, HE noted.

Chairman of Al Meera also confirmed that Al Meera remains committed to delivering long-term strategy for growth, and with it, sustainable value for the shareholders, and at the same time, fulfilling its vision to be “The Favorite Neighborhood Retailer”.

‘On behalf of the Board of Directors, I express our sincere gratitude, appreciation and thanks to His Highness Sheikh Tamim Bin Hamad Al Thani, Emir of the State of Qatar, for his wise vision and leadership, and his continuous support and guidance. The Board would also like to graciously thank His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani, Prime Minister and Minister of Interior, for his commitment and support to Al Meera’, HE concluded.

The Board of Directors of Al Meera Consumer Goods Company (Q.S.C.) discussed the Annual Report on the Company’s operations and financial position and other articles;

Qatar Airways now flies daily to Zagreb, Croatia

Sales and gross profit

The report mentioned that the addition of new stores and the increase in footfall from refurbished stores have contributed to strong sales growth in 2013. Group sales for the year 2013 have increased by 29.4%, to almost 2.0 billion (from QAR 1,503.5 million in 2012 to QAR 1,946.0 million). Al Meera Qatar retail’s sales of fresh produce in 2013 increased 24.4% over last year and contributed to 19.0% of the total sales of Qatar retail.

Total number of customers’ transactions in Al Meera Qatar retail grew by about 10%, from 19.2 million in 2012 to 21.1 million in 2013, while average check-out basket increased 2.8%, from QAR 83.35 in 2012 to QAR 85.63 in 2013. Gross profit was up by 25.0% from QAR 255.7 million in 2012, to QAR 319.5 million.

Expropriation of land and building

In July 2013, as part of the government infrastructure, design and expansion, the land and building located in Al Khor with a net book value of QAR 1.0 million was sold by the Group to the Government of Qatar represented by Municipality and Urban Planning. The total proceeds received from the sale amounted to QAR 72.4 million, giving rise to a net gain on expropriation of land and building of QAR 71.4 million.

Operating income

Operating income increased 21.2% to QAR 382.2 million. Shop rental income from leased shops in different Company’s branches increased 11.7% in 2013 to QAR 36.6 million from QAR 32.7 million in 2012.

Net profit attributable to owners of the Company

Net profit attributable to owners of the Company, after non-controlling interest and inclusive of extraordinary income of QAR 71.4 million, rose 85.4% to QAR 196.1 million, while the net profit attributable to owners of the Company, excluding gain on expropriation of land and building, rose 17.9% to QAR 124.7 million.

Earnings per share (including gain on expropriation of land and building)

Earnings per share in 2013, including gain on expropriation of land and building, equated to QAR 10.27 per share (adjusted for rights issue) compared to QAR 9.00 in 2012 (restated for rights issue).

Total assets

Total assets rose 71.6%, from QAR 1,046.2 million in 2012 to QAR 1,795.3 million as at December 31, 2013.

Rights Issue

On March 25, 2013, after obtaining necessary approvals, the Group issued 10 million shares as rights issue at issue price of QAR 95.00 per share, upon obtaining approval from the shareholders in the Extraordinary General Assembly held on October 8, 2012. The rights issue was over-subscribed by 140%.

Total equity

Total equity soared 360.0% from QAR 305.2 million in 2012 to QAR 1,404.0 million as at December 31, 2013 as a result of the capital increase and earnings generated during the year 2013.

Bank debt

During the year the Company repaid all its bank borrowing and has no bank debt as at December 31, 2013.

Available-for-sale investments

Available-for-sale investments increased 17.8%, from QAR 125.8 million in 2012, to QAR 148.3 million as at December 31, 2013. The Company’s Investment Portfolio generated net realized gains of QAR 14.9 million, up 98.4% from QAR 7.5 million the previous year. Dividend income for 2013 was QAR 5.3 million, down 9.4%. 

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