Peace, Mercy and Blessings of Allah be upon you
On my own behalf and on behalf of my brothers, members of the Board of Directors and the executive management, I am pleased to welcome you to the company's general assembly meeting, to thank you for your attendance and appreciate your interest, and to put in your hands the annual report for the fiscal year ending on December 31, 2021.
The financial results achieved by the company during the year 2021 showed the strength of its financial position, the quality of its investments and the efficiency of its operation, and that the company is committed to moving forward in achieving the goals through steady and deliberate steps aimed at maximizing shareholders' rights and profit growth. The year 2021 was an extension of the correct approach that the company is going with, thanks to Allah and the efforts of the members of the Board of Directors, the executive management and all employees of the company.
We summarize for you what was achieved during the year ending December 31, 2021
The year 2021 witnessed a distinguished performance for the company by achieving the best rate in the total operating profit, as the company's consolidated sales amounted to 12,841,695 KD compared to sales of 12,290,351 KD for the previous year, i.e. a growth rate of 4.49% over the last year, where the total operating profit for the current period reached an amount/ 2,685,225 KD compared to the amount/ 2,379,139 KD, i.e. an average growth rate of 12.87% over last year in light of the intense competition inside and outside Kuwait and the gradual rise in paper prices globally.
The company's consolidated net profit in the fiscal year ended on 31/12/2021 reached an amount of 1,341,388 KD, compared to the same period for the previous year, when it was 1,024,917 KD, e.g. a growth rate of 30.88% for the year 2020.
Despite the decline in the local operating environment and the weakness of economic activity in general that the previous year witnessed at the regional and global levels, the political and social turmoil in the region and the exacerbation of the global financial crisis, and in response to the financial results for the year 2021, that the Industrial Division has made every effort to maintain its achievement, pointing out that the repercussions of Corona crisis around the world and its impact and the precautionary measures imposed by the governments around the world.
Earnings per share for the fiscal year ending on 31/12/2021 became 13.52 fils per share, compared to 10.33 fils per share, i.e. a growth rate of 30.88% over the year 2020.
Noting that the book value of the share is 187 fils per share for the year 2021, compared to 184 fils per share for the previous year.
The total assets amounted to 23,309,101 KD compared to the same previous year, when it was 22,404,351 KD, i.e. a growth rate of 4.04% over the last year
Shareholders' equity amounted to 18,527,523 KD compared to the same period of the previous year, when it was 18,228,218 KD, with a growth rate of 1.64% over the previous year
The company has produced and manufactured 23,760 tons for the current year, and on the other hand, exports still represent 63% of the company's total sales during 2021, which is something that the management is keen to enhance by maintaining its share in various global markets despite intense competition. The management had devoted itself during 2021 to market its products from the production lines of small bags (mainly the food sector) in Kuwait and the Gulf Cooperation Council countries on the one hand, in addition to the initiative to enter international markets to compete, on the other hand, as entering those markets requires us to improve the quality of production and maintain the global competitive level in order to be able to gain satisfactory shares in those markets.
The company's Board of Directors decided to raise a recommendation to the general assembly to approve the distribution of profits to shareholders, to the shareholders registered in the company's records at the end of the due day specified for it on 05/24/2022, and to be distributed to the shareholders entitled to it on 05/31/2022, after deducting treasury shares. Noting that this recommendation is subject to the approval of the competent authorities and the general assembly of the company and is as follows:-
(One Million One Hundred Ninety Thousand Eight Hundred Fifty-Three Kuwaiti Dinars and 204 Fils)
(Thirty Thousand Dinars Only)
Finally, I and my brothers, members of the Board of Directors, present our sincere greetings and appreciation to all those who contributed to the development of the company's performance, including all the company's employees, customers and suppliers. I thank Allah the Almighty, my brothers, members of the board of directors, executive management, honorable shareholders and everyone who contributed to the company's achievements for the year 2021, asking Allah, the Almighty, to always be at the good expectations of the honorable shareholders. We look forward to 2022 to be more positive in growth and prosperity.
Saleh Imran Abdullah Kanaan
Chairman of Board of Directors