United Industries Company (UIC) carried out a major restructuring, exiting from one company and establishing two new companies.

UIC, the Kuwait-based holding company for Kuwait Projects Company (Kipco) Group’s investments in the industrial sector, sold its assets in Kuwait Catering Company and created Kuwait United Catering & Restaurants Company and United Projects Company, both of which are fully owned by UIC.
“The management of UIC continued the execution of its plan of restructuring the company’s assets and liabilities so as to exit from lines of activities inconsistent with the purposes of the company,” said Shaikh Khalifa Abdullah Al Jaber Al Sabah, UIC chairman. UIC posted net profits of KD4.4 million ($15 million) for first-half 2005. 
During 2004, a KD15-million bond issue was launched as a step towards restructuring or rescheduling the company’s loans. Shaikh Khalifa said bond issues provided the liquidity needed by the company at a lower cost and they assisted in developing and preparing the infrastructure for financing several future projects. “The fast coverage of the bond issue and the high demand of subscribing to it reflected the strong confidence in the company from a wide range of individual and institutional investors.
The year also saw the establishment of Danish & Middle East Paints Holding Company in Bahrain. All Hempel divisions in Kuwait, Saudi Arabia and Syria are being merged with the holding company, which will be the parent company for Hempel branches. UIC has varying degrees of investment in Hempel Paints’ firms in Kuwait, Saudi Arabia, the UAE, Bahrain and Qatar.
UIC reported a net profit of KD2.8 million in 2004, up 5.6 per cent from the previous year.
Total assets grew to KD102.4 million, higher by 11 per cent than in the previous year. The growth was due to the rise in short-term investments and financial funds as well as to increased investment in Sadafco and the establishment of the new subsidiary, Kuwait United Catering & Restaurants Company.
UIC’s subsidiaries and associates showed better performance and operating income in 2004 than in the previous year. The consolidated sales volume grew by 613 per cent, reaching KD8.48 million compared with KD1.19 million in the previous year. As a result, the total operating profit stood at KD2.67 million, up 289 per cent  compared with KD690,000  for 2003. The growth led to a rise by 178 per cent in the company’s share in subsidiaries’ profits, which increased from KD159 million for 2003 to KD4.43 million in 2004.
“This remarkable increase was due to the consolidation of the financial data of United Fisheries Company of Kuwait (UFK) whereby UFK’s share in Sadafco’s profits amounted to KD3.11 million as well as to the increase of UIC’s share in Hempel Company’s profits to 25 per cent or KD1 million,” said Shaikh Khalifa.
UIC had a 49 per cent share in Sadafco through UFK, but subsequently UFK sold 9 per cent of its equity stake for a profit of KD4.2 million. UIC’s ownership in UFK is 53.4 per cent. Sadafco offered 30 per cent of its existing shares earlier this year to the public but UIC’s stake was unchanged.
A subsidiary of UFK, Sadafco is considered a prominent company within the UIC portfolio. A closed company with a paid-up capital of SR325 million and established more than 20 years ago, it has built a proven track record of progress to become a pioneer producer and supplier of dairy products, juices and other products in the Gulf region.  Sadafco operates in co-operation with the International Danish Group, which owns the prestigious trademark TetraPak, offering more than 200 products to the local market and GCC markets as well as Jordan, Lebanon, Egypt and North African countries.
Kuwait Chemical Manufacturing Company increased its sales volume by 124 per cent, leading to a growth of 121 per cent in its net profit. UIC’s share in the company is 59.72 per cent.  The total sales of Kuwait United Catering  & Restaurants Management Company amounted to KD1.96 million with net profit standing at KD0.15 million in the company’s first year of operation.