AMMAN, Jordan, March 12, 2019
AMMAN, Jordan, March 12, 2019 /PRNewswire/ -- Siniora Food Industries PLC announced its consolidated audited financial results for 2018, via its disclosure to Jordanian Securities Commission and Amman Stock Exchange, which also included the approval of Siniora's board of directors of the audited financial statements 2018 in addition to Deloitte and Touche's independent report.
According to the reported results, revenues amounted JD 55.66 million (USD 78.39 million) in 2018 compared to JD 55.81 million (USD 78.60 million) in 2017. Although Siniora achieved a growth of over 2% in revenues, it should be noted, however, that the company's adoption of IFRS 15 had a negative impact of approximately JD 1 million on revenues, which was caused by a reclassification of part of the sales and marketing expenses that were recorded under net sales.
The company maintained good net profits, which amounted to JD 4.33 million (USD 6.10 million) in 2018, compared to JD 4.69 million (USD 6.61 million) in 2017, taking into account the increase in manufacturing expenses in Jordan along with an increase in the cost of raw materials in Palestine in the fourth quarter of 2018.
In his statement, Siniora Chairman Tarek Omar Aggad conveyed his satisfaction at the company's results, which were achieved despite the difficult circumstances facing the region. Aggad went on to confirm that the company has maintained its leading position in the Jordanian, Palestinian and Gulf markets, adding that the company was able to achieve a noticeable growth of 52% compared to the previous year in the Jordanian frozen meat market, and expanded its presence in the retail and HORECA sectors.
As for regional expansion, Aggad stated that Siniora acquired Dubai-based Diamond Meat Processing Company in its entirety, buying out the shares of its partner, Emerging Investment Partners (EIP), which represented 30% of the company, in a deal worth JD 4.5 million (USD 6.14 million). Previously in 2016, Siniora had acquired 70% of the company in a deal worth JD 8.52 million (USD 12 million) at that time.
Aggad noted that the company has added two members to its board of directors, increasing it from five to seven in line with the instructions of the Jordanian Securities Commission related to corporate governance, which state that public shareholding companies should include independent members in their boards. The new members have brought value and experience to the board through their knowledge and expertise. Aggad went on to add that the board of directors recommended to the company's general assembly the distribution of cash dividends to shareholders amounting to JD 3 million (USD 4.2 million) which represents 12% of the company's paid-in capital.
Siniora CEO Majdi Al Sharif said that the growth in Siniora's revenues is a result of the company's plans to increase the production capacity of its factories as well as continue maintaining the high quality of its products. He added that the full acquisition of Dubai-based Diamond Meat Processing Company contributed to raising production capacities in order to meet the needs of its customers. Al Sharif added that the company will maintain its leading position as one of the most prominent and fastest growing companies in the food industry in Jordan and the region. Siniora will work to increase the sales of its frozen meat products in Jordan and will launch them in the Palestinian market. The company will also aim to further expand into new and regional markets, and will focus on the Gulf through its subsidiary, Diamond Meat Processing.
Siniora is a pioneer in the meat manufacturing sector in the region and a market leader in the manufacture and sale of branded Siniora Al-Quds and Unium processed meat. The company was founded in Jerusalem, Palestine, in 1920, and established its factory in Jordan in 1992. Siniora acquired Diamond Meat Processing Company in Dubai in 2016. Siniora produces cold cuts and canned luncheon meat from three state-of-the-art processing plants built using the latest technologies, one located in East Jerusalem, Palestine, the second located in King Abdullah II Industrial Estate in Jordan and the third in United Arab Emirates. In 2015, Siniora's factory in Jordan launched a new production line of frozen meat products. Siniora factories in Jordan and Palestine maintain a highly-ranked international food safety certificate, the FSSC: Food Safety System Certificate 22000 (ISO/TS22002-1), which represents the adoption of the highest food security standards worldwide and is recognized by key international organizations including the European Food and Beverage Association, the American Manufacturing Association and the Global Food Safety Initiative. It also holds the Palestinian Standard Certificate in Palestine and the Halal Certificate issued by Jordanian Standards. Since 2014, Siniora factories in Jordan and Palestine have been maintaining the international certifications for Occupational Health and Safety Management Systems OHSAS 18001:2007 and Environmental Management Systems ISO14001:2004. The company markets its products through mass merchandisers, grocery stores, high-frequency stores and department stores in Jordan, Palestine, Saudi Arabia and the United Arab Emirates as well as in many other countries in the Middle East. Siniora also has distribution centers in Saudi Arabia, the United Arab Emirates and a dedicated export department covering the Gulf and the Levant. Siniora is a public shareholding company listed on the Amman Stock Exchange (ASE: SNRA).