Financial Information

Board of Directors’ Report and Recommendations

Dear Shareholders

The Board of Directors prepared during the fiscal year ending on 31 December 2021 the financial report as follows:

  • The company’s net profit reached KD 2,200,272 (two million, two hundred thousand and two hundred and seventy two Kuwaiti Dinars) for the fiscal year ending on 31/12/2021, compared with 1,573,324 for the fiscal year ending on 31/12/2020, with a 39.8% increase and a notable 8.2% increase in shareholders’ equity.
  • The company’s share profit increased by 39.8% for the fiscal year ending on 31/12/2021, reaching 15.21 fils compared to 10.88 fils for the fiscal year ending on 31/12/2020.
  • The company’s total operating revenue increased by 30.6% by the end of 2021, compared to the same period in 2020.
  • The Board of Directors recommended distributing cash dividends of 8% of the contributed capital (8 fils per share of the contributed capital) and distributing bonus dividends of 17% of the contributed capital (17 shares per 100 shares) for the fiscal year ending on 31/12/2021.
  • An agreement was reached not to pay bonuses for members of the Board of Directors for the fiscal year ending on 31 December 2021.
  • An agreement was reached to elect a Board of Directors for a three-year term (2022-2023-2024) as follows:

Non-independent members:

Abdullah Saud Merdhi Al-Mutairi

Fahad Saud Merdhi Al-Mutairi

Mohammad Saud Merdhi Al-Mutairi

Bassam Abdulrahman Al-Badawi

Independent member:

Mohammad Taha Abdul Sameea Abdulrahman

  • An agreement was reached to deduct 10% of profits for the voluntary reserve account (KD 230,280) to support the company’s financial position.
  • An agreement was reached to amend clause #5 of the memorandum of association and article #5 of the corporate charter to increase the company’s authorized, issued and contributed capital from KD 14,465,646 (fourteen million, four hundred and sixty five thousand and six hundred and forty six Kuwaiti Dinars) to KD 16,924,806 (sixteen million, nine hundred and twenty four thousand and eight hundred and six Kuwaiti Dinars), with a share value of 100 fils while all shares must be in cash.
  • An agreement was reached to list Aleid Foods’ shares in non-Kuwaiti stock markets. The Board of Directors or its equivalent was authorized to set a date to implement this decision, and take all procedures according to the regulations issued by the concerned regulatory authorities.
  • We started 2021 with a new direction towards activating the company’s restructuring programs. However, the continuation of the negative impacts of COVID-19 and the emergence of new variants brought us back to the closures and precautionary measures’ scenario, followed by efforts to protect the country’s food security. This is the challenge that we faced in 2021, and which we were able to overcome thanks to our experience in dealing with the pandemic in 2020 and adopting flexible plans and mechanisms to deal with crises and assume our duty in maintaining Kuwait’s food security, due to logistical difficulties since the start of the pandemic.
  • The year 2021 for the company was a year of upgrading and supporting its balanced structure to achieve sustainability by focusing on creating a clear and detailed business plan that establishes the foundations for restructuring its operations, reaching efficiency in standard operation procedures and keeping pace with business development.
  • Aleid Foods improved its risk management methods and adherence to transparency towards its shareholders, and that by focusing on improving its website (aleidfoods.com) and upgrading it by adding advanced digital tools through which investors can read the company’s latest news through direct link with Boursa Kuwait’s website. This comes according to the company’s commitment to its responsibility towards shareholders and transparency in providing indicators that allow them to make calculated decisions that benefit them and the company alike.
  • The company made steady steps forward towards achieving its operational sustainability strategy and expanding the circle of its activity to enhance its position locally and regionally, and that by acquiring new trademarks, expanding in vital sectors and establishing new branches and specialized subsidiaries, in addition to focusing on digital transformation for business empowerment and project enhancement.
  • As for trading in Kuwait Stock Exchange, Aleid Foods signed a contract with ‘Al-Markaz’ financial company as a second market maker for its share according to the regulations of the Capital Market Authority and Boursa Kuwait.

Financial performance

Finally, we would like to express gratitude towards shareholders who placed their trust in our company and our capabilities in overcoming challenges and develop business to keep pace with changes and be able to achieve the required performance. We would also like to thank all staff members for their efforts and dedication in meeting Kuwait’s needs in 2021.

Thank you, and best regards.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

Board of Directors’ Report and Recommendations

  1. Dear shareholders, 

The Board of Directors completed the financial report for the fiscal year ending on 31/12/2020 as follows:

Operating revenue for the fiscal year ending on 31/12/2020 were KD 17,502,306 (compared to KD 17,881,264 in 2019), with a KD 378,958 decrease or 2.1%.

Net operating profit for the fiscal year ending on 31/12/2020 reached KD 2,878,121 (compared to KD 2,895,762 in 2019), with a KD 17,641 decrease or 0.6%.

General expenses and others for the fiscal year ending on 31/12/2020 reached KD 1,231,693 (compared to KD 1,315,196 in 2019), with a KD 83,503 decrease or 6.3%.

Net profit: net profit for the fiscal year ending on 31/12/2020 reached KD 1,573,324 (compared to KD 1,509,582 in 2019), with a KD 63,742 increase or 4.2%.

Earnings per share: Earnings per share for 2020 reached 13.05 fils, compared to 12.52 fils in 2019 with a 4.2% increase.

Current projects: The company has increased its sales, introduced new items and increased its client base.

Future projects: Distribution channels were increased, and new high-quality items from well-known commercial agencies were introduced. These factors help reduce cost and present a competitive price that attracts customers, increases the company’s revenues and boosts its client base by offering new products and services and win customers’ trust.

  1. The Board of Directors recommended no rewards for the members of the Board of Directors for the fiscal year ending on 31/12/2020.
  2. The Board of Directors recommended paying cash dividends of 5% of the par value per share, and a bonus dividend of 20% for the fiscal year ending on 31/12/2020.
  3. The Board of Directors recommended deducting 10% from profits to the voluntary reserve account, and 10% from the profits’ account to the legal reserve account.

Related parties

There are related parties in the form of benefits and rewards to the higher management equal to KD 24,000, and the Chief Executive Officer’s salary.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

 

Board of Directors’ Report and Recommendations

  1. Dear shareholders, 

The Board of Directors completed the financial report for the fiscal year ending on 31/12/2019 as follows:

Operating revenue for the fiscal year ending on 31/12/2019 were KD 17,881,264 (compared to KD 17,054,482 in 2018), with a KD 826,782 increase or 4.8%.

Net operating profit for the fiscal year ending on 31/12/2019 reached KD 2,895,762 (compared to KD 2,812,787 in 2018), with a KD 82,975 increase or 3%.

General expenses and others for the fiscal year ending on 31/12/2019 reached KD 1,315,196 (compared to KD 1,324,695 in 2018), with a KD 9,499 decrease or 0.7%.

Net profit: net profit for the fiscal year ending on 31/12/2019 reached KD 1,509,582 (compared to KD 1,421,040 in 2018), with a KD 88,542 increase or 6.2%.

Earnings per share: Earnings per share for 2019 reached 15.03 fils, compared to 14.15 fils in 2018 with a 6.2% increase.

Current projects: The company has increased its sales, introduced new items and increased its client base.

Future projects: Distribution channels were increased, and new high-quality items from well-known commercial agencies were introduced. These factors help reduce cost and present a competitive price that attracts customers, increases the company’s revenues and boosts its client base by offering new products and services and win customers’ trust.

  1. The Board of Directors recommended no rewards for the members of the Board of Directors for the fiscal year ending on 31/12/2019.
  2. The Board of Directors recommended paying a bonus dividend of 20% for the fiscal year ending on 31/12/2019.
  3. The Board of Directors recommended deducting 10% from profits to the voluntary reserve account, and 10% from the profits’ account to the legal reserve account.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

 

From 1 January 2021 to 31 December 2021

In reference to the subject above, and after the end of the fiscal year on 31 December 2021, we are glad to present to you our report for the aforementioned period, which explains the company’s operations and activities that were under audit and point out the main remarks and recommendations. The following is a preview of the report:

First: Goals, extent and procedures of the audit operations

  1. Revenue audit.
  2. Payment check.
  3. Cash and cash equivalent audit.
  4. Financial statements’ verification.
  5. Administrative affairs’ audit.
  6. Administrative decisions’ follow up.

Second: Audit result –

First: Goals, extent and procedures of the audit operations

  1. Revenue audit

The audit process covered all items of revenue from the company’s activities, examining registers and documents and verifying with the deposits in the company’s bank accounts.

  1. Payment check

The payments were checked through verifying exchange vouchers and support documents and making sure that payments were made in exchange of operations for the company.

  1. Cash and cash equivalent audit

We reviewed monthly reports and matched them with the company’s bank accounts to find out that they were fully matched, and bank accounts were matching with the company’s records (after calculating bank reconciliations).

  1. Financial statements’ verification

Financial statements were reviewed and compared to monthly audit balances, while account statements were analyzed and compared with bank accounts. Furthermore, registers, exchange and receipt vouchers were examined.

  1. Administrative affairs’ audit

Administrative affairs were reviewed, including examining employees’ files, hiring procedures and commitment to internal regulations.

  1. Administrative decisions’ follow up

Administrative decisions issued by the Chairman of the Board and Chief Executive Officer during the same period were reviewed, and we found that they were fully implemented by the concerned departments.

Second item related to financial restructuring to reduce costs

Second: Audit result

After carrying out the audit operations, we found that the company’s financial statements do not include any material errors except for what is mentioned under item number 6, and that the company’s internal audit was good and effective. We also found that departments have executed decisions and policies related to this period.

In reference to the subject above, and after the end of the fiscal year on 31 December 2020, we are glad to present to you our report for the aforementioned period, which explains the company’s operations and activities that were under audit and points out the main remarks and recommendations. The following is a preview of the report: 

First: Goals, extent and procedures of the audit operations

  1. Revenue audit.
  2. Payment check.
  3. Cash and cash equivalent audit.
  4. Financial statements’ verification.
  5. Administrative affairs’ audit.
  6. Administrative decisions’ follow up.

Second: Audit result

First: Goals, extent and procedures of the audit operations

 1. Revenue audit.

The audit process covered all items of revenue from the company’s activities, examining registers and documents and verifying with the deposits in the company’s bank accounts.

 2. Payment check.

The payments were checked through verifying exchange vouchers and support documents, and making sure that payments were made in exchange of operations for the company.

 3. Cash and cash equivalent audit.

We reviewed monthly reports and matched them with the company’s bank accounts to find out that they were fully matched, and bank accounts were matching with the company’s records (after calculating bank reconciliations).

 4. Financial statements’ verification.

Financial statements were reviewed and compared to monthly audit balances, while account statements were analyzed and compared with bank accounts. Furthermore, registers, exchange and receipt vouchers were examined.

 5. Administrative affairs’ audit

Administrative affairs were reviewed, including examining employees’ files, hiring procedures and commitment to internal regulations.

 6. Administrative decisions’ follow up.

Administrative decisions issued by the Chairman of the Board and Chief Executive Officer during the same period were reviewed, and we found that they were fully implemented by the concerned departments.

Second item related to financial restructuring to reduce costs

Second: Audit result

After carrying out the audit operations, we found that the company’s financial statements do not include any material errors except for what is mentioned under item number 6, and that the company’s internal audit was good and effective. We also found that departments have executed decisions and policies related to this period.

Board of Directors’ Report and Recommendations

Dear Shareholders

The Board of Directors prepared during the fiscal year ending on 31 December 2021 the financial report as follows:

  • The company’s net profit reached KD 2,200,272 (two million, two hundred thousand and two hundred and seventy two Kuwaiti Dinars) for the fiscal year ending on 31/12/2021, compared with 1,573,324 for the fiscal year ending on 31/12/2020, with a 39.8% increase and a notable 8.2% increase in shareholders’ equity.
  • The company’s share profit increased by 39.8% for the fiscal year ending on 31/12/2021, reaching 15.21 fils compared to 10.88 fils for the fiscal year ending on 31/12/2020.
  • The company’s total operating revenue increased by 30.6% by the end of 2021, compared to the same period in 2020.
  • The Board of Directors recommended distributing cash dividends of 8% of the contributed capital (8 fils per share of the contributed capital) and distributing bonus dividends of 17% of the contributed capital (17 shares per 100 shares) for the fiscal year ending on 31/12/2021.
  • An agreement was reached not to pay bonuses for members of the Board of Directors for the fiscal year ending on 31 December 2021.
  • An agreement was reached to elect a Board of Directors for a three-year term (2022-2023-2024) as follows:

Non-independent members:

Abdullah Saud Merdhi Al-Mutairi

Fahad Saud Merdhi Al-Mutairi

Mohammad Saud Merdhi Al-Mutairi

Bassam Abdulrahman Al-Badawi

Independent member:

Mohammad Taha Abdul Sameea Abdulrahman

  • An agreement was reached to deduct 10% of profits for the voluntary reserve account (KD 230,280) to support the company’s financial position.
  • An agreement was reached to amend clause #5 of the memorandum of association and article #5 of the corporate charter to increase the company’s authorized, issued and contributed capital from KD 14,465,646 (fourteen million, four hundred and sixty five thousand and six hundred and forty six Kuwaiti Dinars) to KD 16,924,806 (sixteen million, nine hundred and twenty four thousand and eight hundred and six Kuwaiti Dinars), with a share value of 100 fils while all shares must be in cash.
  • An agreement was reached to list Aleid Foods’ shares in non-Kuwaiti stock markets. The Board of Directors or its equivalent was authorized to set a date to implement this decision, and take all procedures according to the regulations issued by the concerned regulatory authorities.
  • We started 2021 with a new direction towards activating the company’s restructuring programs. However, the continuation of the negative impacts of COVID-19 and the emergence of new variants brought us back to the closures and precautionary measures’ scenario, followed by efforts to protect the country’s food security. This is the challenge that we faced in 2021, and which we were able to overcome thanks to our experience in dealing with the pandemic in 2020 and adopting flexible plans and mechanisms to deal with crises and assume our duty in maintaining Kuwait’s food security, due to logistical difficulties since the start of the pandemic.
  • The year 2021 for the company was a year of upgrading and supporting its balanced structure to achieve sustainability by focusing on creating a clear and detailed business plan that establishes the foundations for restructuring its operations, reaching efficiency in standard operation procedures and keeping pace with business development.
  • Aleid Foods improved its risk management methods and adherence to transparency towards its shareholders, and that by focusing on improving its website (aleidfoods.com) and upgrading it by adding advanced digital tools through which investors can read the company’s latest news through direct link with Boursa Kuwait’s website. This comes according to the company’s commitment to its responsibility towards shareholders and transparency in providing indicators that allow them to make calculated decisions that benefit them and the company alike.
  • The company made steady steps forward towards achieving its operational sustainability strategy and expanding the circle of its activity to enhance its position locally and regionally, and that by acquiring new trademarks, expanding in vital sectors and establishing new branches and specialized subsidiaries, in addition to focusing on digital transformation for business empowerment and project enhancement.
  • As for trading in Kuwait Stock Exchange, Aleid Foods signed a contract with ‘Al-Markaz’ financial company as a second market maker for its share according to the regulations of the Capital Market Authority and Boursa Kuwait.

Financial performance

Finally, we would like to express gratitude towards shareholders who placed their trust in our company and our capabilities in overcoming challenges and develop business to keep pace with changes and be able to achieve the required performance. We would also like to thank all staff members for their efforts and dedication in meeting Kuwait’s needs in 2021.

Thank you, and best regards.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

Board of Directors’ Report and Recommendations

  1. Dear shareholders, 

The Board of Directors completed the financial report for the fiscal year ending on 31/12/2020 as follows:

Operating revenue for the fiscal year ending on 31/12/2020 were KD 17,502,306 (compared to KD 17,881,264 in 2019), with a KD 378,958 decrease or 2.1%.

Net operating profit for the fiscal year ending on 31/12/2020 reached KD 2,878,121 (compared to KD 2,895,762 in 2019), with a KD 17,641 decrease or 0.6%.

General expenses and others for the fiscal year ending on 31/12/2020 reached KD 1,231,693 (compared to KD 1,315,196 in 2019), with a KD 83,503 decrease or 6.3%.

Net profit: net profit for the fiscal year ending on 31/12/2020 reached KD 1,573,324 (compared to KD 1,509,582 in 2019), with a KD 63,742 increase or 4.2%.

Earnings per share: Earnings per share for 2020 reached 13.05 fils, compared to 12.52 fils in 2019 with a 4.2% increase.

Current projects: The company has increased its sales, introduced new items and increased its client base.

Future projects: Distribution channels were increased, and new high-quality items from well-known commercial agencies were introduced. These factors help reduce cost and present a competitive price that attracts customers, increases the company’s revenues and boosts its client base by offering new products and services and win customers’ trust.

  1. The Board of Directors recommended no rewards for the members of the Board of Directors for the fiscal year ending on 31/12/2020.
  2. The Board of Directors recommended paying cash dividends of 5% of the par value per share, and a bonus dividend of 20% for the fiscal year ending on 31/12/2020.
  3. The Board of Directors recommended deducting 10% from profits to the voluntary reserve account, and 10% from the profits’ account to the legal reserve account.

Related parties

There are related parties in the form of benefits and rewards to the higher management equal to KD 24,000, and the Chief Executive Officer’s salary.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

 

Board of Directors’ Report and Recommendations

  1. Dear shareholders, 

The Board of Directors completed the financial report for the fiscal year ending on 31/12/2019 as follows:

Operating revenue for the fiscal year ending on 31/12/2019 were KD 17,881,264 (compared to KD 17,054,482 in 2018), with a KD 826,782 increase or 4.8%.

Net operating profit for the fiscal year ending on 31/12/2019 reached KD 2,895,762 (compared to KD 2,812,787 in 2018), with a KD 82,975 increase or 3%.

General expenses and others for the fiscal year ending on 31/12/2019 reached KD 1,315,196 (compared to KD 1,324,695 in 2018), with a KD 9,499 decrease or 0.7%.

Net profit: net profit for the fiscal year ending on 31/12/2019 reached KD 1,509,582 (compared to KD 1,421,040 in 2018), with a KD 88,542 increase or 6.2%.

Earnings per share: Earnings per share for 2019 reached 15.03 fils, compared to 14.15 fils in 2018 with a 6.2% increase.

Current projects: The company has increased its sales, introduced new items and increased its client base.

Future projects: Distribution channels were increased, and new high-quality items from well-known commercial agencies were introduced. These factors help reduce cost and present a competitive price that attracts customers, increases the company’s revenues and boosts its client base by offering new products and services and win customers’ trust.

  1. The Board of Directors recommended no rewards for the members of the Board of Directors for the fiscal year ending on 31/12/2019.
  2. The Board of Directors recommended paying a bonus dividend of 20% for the fiscal year ending on 31/12/2019.
  3. The Board of Directors recommended deducting 10% from profits to the voluntary reserve account, and 10% from the profits’ account to the legal reserve account.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

 

From 1 January 2021 to 31 December 2021

In reference to the subject above, and after the end of the fiscal year on 31 December 2021, we are glad to present to you our report for the aforementioned period, which explains the company’s operations and activities that were under audit and point out the main remarks and recommendations. The following is a preview of the report:

First: Goals, extent and procedures of the audit operations

  1. Revenue audit.
  2. Payment check.
  3. Cash and cash equivalent audit.
  4. Financial statements’ verification.
  5. Administrative affairs’ audit.
  6. Administrative decisions’ follow up.

Second: Audit result –

First: Goals, extent and procedures of the audit operations

  1. Revenue audit

The audit process covered all items of revenue from the company’s activities, examining registers and documents and verifying with the deposits in the company’s bank accounts.

  1. Payment check

The payments were checked through verifying exchange vouchers and support documents and making sure that payments were made in exchange of operations for the company.

  1. Cash and cash equivalent audit

We reviewed monthly reports and matched them with the company’s bank accounts to find out that they were fully matched, and bank accounts were matching with the company’s records (after calculating bank reconciliations).

  1. Financial statements’ verification

Financial statements were reviewed and compared to monthly audit balances, while account statements were analyzed and compared with bank accounts. Furthermore, registers, exchange and receipt vouchers were examined.

  1. Administrative affairs’ audit

Administrative affairs were reviewed, including examining employees’ files, hiring procedures and commitment to internal regulations.

  1. Administrative decisions’ follow up

Administrative decisions issued by the Chairman of the Board and Chief Executive Officer during the same period were reviewed, and we found that they were fully implemented by the concerned departments.

Second item related to financial restructuring to reduce costs

Second: Audit result

After carrying out the audit operations, we found that the company’s financial statements do not include any material errors except for what is mentioned under item number 6, and that the company’s internal audit was good and effective. We also found that departments have executed decisions and policies related to this period.

In reference to the subject above, and after the end of the fiscal year on 31 December 2020, we are glad to present to you our report for the aforementioned period, which explains the company’s operations and activities that were under audit and points out the main remarks and recommendations. The following is a preview of the report: 

First: Goals, extent and procedures of the audit operations

  1. Revenue audit.
  2. Payment check.
  3. Cash and cash equivalent audit.
  4. Financial statements’ verification.
  5. Administrative affairs’ audit.
  6. Administrative decisions’ follow up.

Second: Audit result

First: Goals, extent and procedures of the audit operations

 1. Revenue audit.

The audit process covered all items of revenue from the company’s activities, examining registers and documents and verifying with the deposits in the company’s bank accounts.

 2. Payment check.

The payments were checked through verifying exchange vouchers and support documents, and making sure that payments were made in exchange of operations for the company.

 3. Cash and cash equivalent audit.

We reviewed monthly reports and matched them with the company’s bank accounts to find out that they were fully matched, and bank accounts were matching with the company’s records (after calculating bank reconciliations).

 4. Financial statements’ verification.

Financial statements were reviewed and compared to monthly audit balances, while account statements were analyzed and compared with bank accounts. Furthermore, registers, exchange and receipt vouchers were examined.

 5. Administrative affairs’ audit

Administrative affairs were reviewed, including examining employees’ files, hiring procedures and commitment to internal regulations.

 6. Administrative decisions’ follow up.

Administrative decisions issued by the Chairman of the Board and Chief Executive Officer during the same period were reviewed, and we found that they were fully implemented by the concerned departments.

Second item related to financial restructuring to reduce costs

Second: Audit result

After carrying out the audit operations, we found that the company’s financial statements do not include any material errors except for what is mentioned under item number 6, and that the company’s internal audit was good and effective. We also found that departments have executed decisions and policies related to this period.

Board of Directors’ Report and Recommendations

  1. Dear shareholders, 

The Board of Directors completed the financial report for the fiscal year ending on 31/12/2019 as follows:

Operating revenue for the fiscal year ending on 31/12/2019 were KD 17,881,264 (compared to KD 17,054,482 in 2018), with a KD 826,782 increase or 4.8%.

Net operating profit for the fiscal year ending on 31/12/2019 reached KD 2,895,762 (compared to KD 2,812,787 in 2018), with a KD 82,975 increase or 3%.

General expenses and others for the fiscal year ending on 31/12/2019 reached KD 1,315,196 (compared to KD 1,324,695 in 2018), with a KD 9,499 decrease or 0.7%.

Net profit: net profit for the fiscal year ending on 31/12/2019 reached KD 1,509,582 (compared to KD 1,421,040 in 2018), with a KD 88,542 increase or 6.2%.

Earnings per share: Earnings per share for 2019 reached 15.03 fils, compared to 14.15 fils in 2018 with a 6.2% increase.

Current projects: The company has increased its sales, introduced new items and increased its client base.

Future projects: Distribution channels were increased, and new high-quality items from well-known commercial agencies were introduced. These factors help reduce cost and present a competitive price that attracts customers, increases the company’s revenues and boosts its client base by offering new products and services and win customers’ trust.

  1. The Board of Directors recommended no rewards for the members of the Board of Directors for the fiscal year ending on 31/12/2019.
  2. The Board of Directors recommended paying a bonus dividend of 20% for the fiscal year ending on 31/12/2019.
  3. The Board of Directors recommended deducting 10% from profits to the voluntary reserve account, and 10% from the profits’ account to the legal reserve account.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

 

Board of Directors’ Report and Recommendations

  1. Dear shareholders, 

The Board of Directors completed the financial report for the fiscal year ending on 31/12/2020 as follows:

Operating revenue for the fiscal year ending on 31/12/2020 were KD 17,502,306 (compared to KD 17,881,264 in 2019), with a KD 378,958 decrease or 2.1%.

Net operating profit for the fiscal year ending on 31/12/2020 reached KD 2,878,121 (compared to KD 2,895,762 in 2019), with a KD 17,641 decrease or 0.6%.

General expenses and others for the fiscal year ending on 31/12/2020 reached KD 1,231,693 (compared to KD 1,315,196 in 2019), with a KD 83,503 decrease or 6.3%.

Net profit: net profit for the fiscal year ending on 31/12/2020 reached KD 1,573,324 (compared to KD 1,509,582 in 2019), with a KD 63,742 increase or 4.2%.

Earnings per share: Earnings per share for 2020 reached 13.05 fils, compared to 12.52 fils in 2019 with a 4.2% increase.

Current projects: The company has increased its sales, introduced new items and increased its client base.

Future projects: Distribution channels were increased, and new high-quality items from well-known commercial agencies were introduced. These factors help reduce cost and present a competitive price that attracts customers, increases the company’s revenues and boosts its client base by offering new products and services and win customers’ trust.

  1. The Board of Directors recommended no rewards for the members of the Board of Directors for the fiscal year ending on 31/12/2020.
  2. The Board of Directors recommended paying cash dividends of 5% of the par value per share, and a bonus dividend of 20% for the fiscal year ending on 31/12/2020.
  3. The Board of Directors recommended deducting 10% from profits to the voluntary reserve account, and 10% from the profits’ account to the legal reserve account.

Related parties

There are related parties in the form of benefits and rewards to the higher management equal to KD 24,000, and the Chief Executive Officer’s salary.

Fahad Saud Al-Mutairi

Chairman of the Board of Directors

 

In reference to the subject above, and after the end of the fiscal year on 31 December 2020, we are glad to present to you our report for the aforementioned period, which explains the company’s operations and activities that were under audit and points out the main remarks and recommendations. The following is a preview of the report: 

First: Goals, extent and procedures of the audit operations

  1. Revenue audit.
  2. Payment check.
  3. Cash and cash equivalent audit.
  4. Financial statements’ verification.
  5. Administrative affairs’ audit.
  6. Administrative decisions’ follow up.

Second: Audit result

First: Goals, extent and procedures of the audit operations

 1. Revenue audit.

The audit process covered all items of revenue from the company’s activities, examining registers and documents and verifying with the deposits in the company’s bank accounts.

 2. Payment check.

The payments were checked through verifying exchange vouchers and support documents, and making sure that payments were made in exchange of operations for the company.

 3. Cash and cash equivalent audit.

We reviewed monthly reports and matched them with the company’s bank accounts to find out that they were fully matched, and bank accounts were matching with the company’s records (after calculating bank reconciliations).

 4. Financial statements’ verification.

Financial statements were reviewed and compared to monthly audit balances, while account statements were analyzed and compared with bank accounts. Furthermore, registers, exchange and receipt vouchers were examined.

 5. Administrative affairs’ audit

Administrative affairs were reviewed, including examining employees’ files, hiring procedures and commitment to internal regulations.

 6. Administrative decisions’ follow up.

Administrative decisions issued by the Chairman of the Board and Chief Executive Officer during the same period were reviewed, and we found that they were fully implemented by the concerned departments.

Second item related to financial restructuring to reduce costs

Second: Audit result

After carrying out the audit operations, we found that the company’s financial statements do not include any material errors except for what is mentioned under item number 6, and that the company’s internal audit was good and effective. We also found that departments have executed decisions and policies related to this period.

A leading company in the import, trade and distribution of food goods, Aleid Foods Company was established in 1994, and with the growth of its business and the development of its operational operations, its capital reached 30 million Kuwaiti dinars.

Company

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