At the beginning of the meeting, the executive committee was formed with Ali Ebrahimi as the chairman, Massoud Goodarzi and Hadi Qanei as observers, and Mehrdad Sepahi as the secretary, while the Securities and Exchange Organization representative, an independent auditor, and a statutory examiner were also present. The managing director of Ofogh Kourosh Chain Stores Co., Amir Khosro Fakhrian, was invited to present and recite the executive committee's action report for the fiscal year ending on March 20, 2019.
In its annual general meeting for the fiscal year of 2018, the CEO of Ofogh Kourosh Chain Stores, Amir Khosro Fakhrian, presented the company's annual performance report to the shareholders with a review of the company's performance and important achievements; financial and operational performance; social responsibilities and achievements; and future plans.
He spoke of Ofogh Kourosh Chain Store Company’s position in the business environment and noted that with 1357 stores in 292 cities, Ofogh Kourosh ranks first in branch development, adding, “Ofogh Kourosh Chain Stores Company’s number of branches grew by 50% year-over-year in 2018.”
He also cited the company’s important programs from the previous year, including improved financial discipline in collecting sales revenue and payment to suppliers and consistent cooperation with a specialized quality control company to monitor product quality.
Mr. Fakhrian announced the launch and development of the supplier portal in Ofogh Kourosh Chain Store, stating that, “Seasonal reports are presented every quarterly and suppliers can monitor their accounts in the supplier portal. Hence, the supplier account numbers at our financial offices are reported accurately, and monthly and annual purchase plans are prepared and presented to producers in the portal.”
He added, “Our short-term goal is to provide access for the producers to monitor the inventory status of each supplier.”
The CEO of Ofogh Kourosh Chain Store Co. then mentioned the launch and completion of the cold chain (cold storage facilities and refrigerated fleet) to keep the dairy and refrigerated products fresh and stressed that this guarantees everyday supply of such goods at the stores.
He announced a 55% year-over-year increase in daily purchases at Ofogh Kourosh and continued, “In 2018, an average of 500,000 purchase invoices were issued every day at Ofogh Kourosh stores.”
Fakhrian also announced a net sales increase of 80% year-over-year in 2018, adding, “The company’s net sales was 29.092 billion IRR at the end of 2017, which has increased by 80% to 52.407 billion IRR in 2018; while the company's net profit of 684 billion IRR in 2017 surged by 335% to 2978 billion IRR.”
He further evaluated Ofogh Kourosh’s position in the chain store industry and remarked, “Ofogh Kourosh's FMCG market share reached 1.50% in 2018, and its chain store industry share of 10.66% in 2017 increased to 13.70% in 2018.”
According to Ofogh Kourosh Chain Store CEO, the company’s total assets exceeded 1.4 trillion IRR, the return on assets was 28.5%, and inventory turnover was 36 days.
Furthermore, according to a report presented at the Ofogh Kourosh Chain Store Company's annual general assembly, 99% of projected net sales, 92% of gross profit, and 108% of net profit of 2018 were achieved.
Fakhrian further noted the Ofogh Kourosh Chain Store Company's human resource development and announced the annual average number of employees of 2018 to be 7,670, representing an 18% year-over-year increase.
He further stated that Ofogh Kourosh was accepted in the Tehran Stock Exchange as the first chain store and noted Ofogh’s share offering trend from the initial public offer until the symbol’s stop price before the meeting, adding, “Ofogh Kourosh's share price at the IPO was 16,950 IRR, which has risen to 49,342 IRR with a return of 191% until the day before the annual assembly.”
The CEO of Ofogh Kourosh Chain Stores noted that compared to the data of the fiscal year of 2017, the Ofogh Kourosh Chain Store Company ranked 1st in sales index, sales returns and total-factor productivity in 2018, and 40th among the top 100 Iranian companies.
He pointed out to the development and training of codes of conduct for store personnel to increase customer satisfaction and announced the company's development plans regarding customers’ club.
“The number of Ofogh Kourosh branches has reached 1460,” announced Fakhrian, adding that the Ofogh Kourosh stores would continue to grow in 2019.
Reports of the independent auditor and the statutory examiner of the company were presented to the shareholders after the 2018 performance report by the CEO of Ofogh Kourosh Chain Store Co. The representative of the Securities and Exchanged Organization also talked about a few points.
The company's financial statements were approved at the meeting and it was decided to divide 90% of the company's profits as dividends of 2,700 IRR per shareholder. The bonus for the company's board of directors was set to 2.5 billion IRR, and the presence remuneration of the non-executive members of the board of directors was set as a monthly payment of 8 million IRR, provided that at least two meetings per month are hold.
The Faraz Moshaver Audit Firm selected Deylamipour (chartered accountant) as the company's chief and independent auditor, and the Bayat Ryan Institute as the substitutive inspector, while the board of directors was tasked to determine remunerations of independent auditor and statutory examiner.
The Donya-e-Eqtesad Newspaper was selected as the official Ofogh Kourosh Chain Store Company newspaper for the company's advertisements.
At the end of the assembly, Golrang Industrial Group, Kourosh Investment Group, Kourosh Retail Industry Management Group, Golpakhsh-e-Aval Co. and Golrang Pakhsh were elected as new members of the board of directors of Ofogh Kourosh for two years.
Furthermore, the meeting approved the ex gratia payments for 2018 and delegated the 2019 ex gratia payments of up to 30 billion IRR to the board of directors.