The Abu Dhabi National Foodstuff Company (Foodco) expects to boost its bottomline with the formation of a new subsidiary.

The subsidiary, established with a capital of Dh33 million ($8.98 million), will focus on catering to restaurants, hotels and other retailers in the hospitality sector.
The decision to establish the enterprise was taken at a recent board meeting. Foodco will hold a 50 per cent stake while the rest of the shareholding will be offered to the existing Foodco shareholders.
“The new operations are projected to generate an additional turnover of between 35 to 39 per cent annually that will add to our already vigorous bottom line. We hope this will bring further improvement to our profitability,” said Foodco’s managing director and member of the board of directors, Ahmed bin Ali Khalfan Al Dhahery.
“Foodco’s newly established entity will create synergy with our already established operations in the foodstuff sector. Our company is one of the leading suppliers of foodstuff and other products in the region. We are sure our new endeavour will enhance value for our shareholders, who are our strength,” he said.
Management of the new company has been assigned to five people, two of whom are existing Foodco staff.
The plans are that after three years of operations, the new company will be transformed into a public shareholding company and the price of one share will be between Dh5 and Dh6.
Third-quarter 2005 net profits were projected to reach more than Dh100 million, around 34 per cent higher than in the second quarter. The profit growth was expected to continue until the end of the year.