Chairman's Message

Chairman's Message

In the name of Allah, Most Merciful, Most Gracious

Dear Shareholders,

It is my pleasure to welcome you on behalf of the Board of Directors and Executive Management to SIC General Assembly meeting. We appreciate your attendance and commitment, and hereby present to you the annual report for the fiscal year ending December 31, 2016.

The financial results that the company achieved in 2016 showed the streng of its financial position, its quality investment and its operational competency. The company is committed to move forward in order to achieve its goals through steady and calculated steps that seek to improve Shareholder’s rights and grow its profits.

Here are summary of what has been achieved during the fiscal year ending on 31st December, 2016:

  • The company’s net profits accumulated during the fiscal year ending on 31st December, 2016 reached KD 1,871,209 compared to KD 1,709,920 recorded in the same period of the previous year making a 9.4% growth compared to the previous year.
  • The earnings per share for the fiscal year ending on 31st December, 2016 reached 23.57 fils per share compared to 21.54 fils per share in the same period of the previous year making a 9.4% growth compared to the previous year. The book value reached 237 fils per share for 2016 compared to 229 fils per share in 2015.
  • Sales reached KD 14,658,206 compared to KD 15,341,191 in the same period the previous year.
  • The total operational profit reached KD 3,828,945 compared to KD 3,557,730 in the same period of the previous year making 7.6% profit compared to the previous year.
  • Meanwhile, total assets grew to KD 23,753,882 compared to KD 21,988,023 in the same period the previous year making a 8% growth compared to the previous year.
  • In the meantime, shareholders’ equity increased to KD 18,837,551 compared with KD 18,162,911 in the previous year making a 4% growth compare in year 2015.
  • The company manufactured and produced 32,186 tons this year compared to 34,330 tons in the same period of last year. Furthermore, exports continue to constitute 65% of the company’s total sales in 2016 which is something that management strives to improve by maintaining its share in different global markets despite fierce competition.
  • Management worked in 2016 to market its small bag production lines (mainly the food sector) in Kuwait and Gulf Council Countries in order to compete in the international markets. Meanwhile, entering new markets requires us to improve the quality of our products and maintain the international competitiveness level in order to be able to attain satisfactory shares in the said markets.
  • The year 2016 witnessed various efforts from the Board of Directors. The Company took advantage of surrounding positive factors in terms of the increasing demand on its products in the region, and that by increasing the producing capacity of the cement factory and others while opening promising markets in all Arab regions. Therefore, the Board of Directors started taking steps to expand the company’s works inside and outside Kuwait and expansions were finished in 2016. Work started at the company’s factory in Kuwait, and machines to wrap the final products were added to cope with the increase in the production capacity in Kuwait for Consumer Packaging (small bags), and the same also goes for the company’s Branch in the U.A.E (JAFZA).
  • Meanwhile, the production line for Industrial packaging for cement bags was launched to cope with the increase in the production by around 30% compared to the current capacity, and the data will be shown in 2017.


Mr. Saleh Omran Kanaan
Chairman

Dear Shareholders,

The Board of Directors decided to refer a recommendation to the General Assembly to approve a distribution of dividends to shareholders registered in the company’s records as of the date of the General Assembly’s meeting, and that, after deducting the treasury’s shares. The recommendation is subjected to approval of concerned authorities at the company’s general assemblies. The recommended distributions are as follows:

  • Distributing 20% as cash dividends (20 fils per share), which is equal to KD 1,587,805.640
  • Proposal to increase the company’s capital from KD 8,055,343.600 to KD 10,069,179.500 or by KD 2,013,835.900 and that by distributing a free 25% Bonus from the company’s capital or 25 shares for every 100 shares to every shareholders registered in the company’s record as of the date before the day in which the share’s price was adjusted.
  • Approving a bonus for Board of Directors members for the fiscal year ending on 31st December, 2016 equal to KD 35,000 (Kuwaiti Dinars, Thirty Five Thousand).

In conclusion, I would like to express gratitude on behalf of the Board of Directors for everyone who contributed to improving the company’s performance, including staff, clients and suppliers.

Gratitude goes to Almighty Allah, my fellow Board of Directors’ members, Executive authority, Shareholders and to everyone who contributed in the company’s achievements in 2016, and we look forward for a more productive 2017.