Posted on October 31, 2017

Aamal Company Q.P.S.C. (‘Aamal’), one of the Gulf’s fastest growing diversified companies, today announces its financial results for the nine months ended 30 September 2017.

Financial Highlights

  • Group revenue down 37% to QAR 1.25bn, primarily due to loss of control of two subsidiaries (9m 2016: QAR 1.99bn)
  • Gross profit down 16% to QAR 418.8m (9m 2016: QAR 499.1m)
  • Net profit attributable to equity holders of the Company down by 1% to QAR352.9 (9m 2016: QAR356.8)
  • Total net profit1 down 11% to QAR 379m (9m 2016: QAR 423.7m)
  • Net underlying profit margins2 of 25.8% (9m 2016: 18.8%)
  • Reported earnings per share of QAR 0.56 (9m 2016: QAR 0.57)
  • Net capital investment expenditure of QAR 72.7m (9m 2016: QAR 92.0m)
  • Net positive cash of QAR 215m (30 June 2017: QAR 135.0m)

1 Total net profit is stated before the deduction of non-controlling minority interests

2 Excluding share of profit from equity accounted for investments in associates and joint ventures

H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented: “The same factors which led to a decline in revenues and profits for the first six months of 2017 have continued to impact Aamal Company’s financial performance during the third quarter of the year. Key amongst these are the loss of control of two subsidiaries in our Industrial Manufacturing division which has affected the presentation of our financials and comparison with the first nine months of 2016, the ongoing redevelopment work at City Centre Doha, and several one-off contracts being awarded during the comparative period last year. An additional factor was the extended time needed to rearrange freight lines to ensure the supply of materials and products during the third quarter. This was achieved as a result of the changes we made to shipping routes and supply chains which were implemented effectively. It is important to note that these factors should not impact Aamal Company’s financial results during the first half of 2018. 

“We will continue to leverage our strong financial position and to pursue our successful diversification strategy, building on Aamal Company’s leading positions across a number of different sectors and selectively expanding so as to create long-term shareholder value. As I mentioned at the time of our half year results, we are currently evaluating several exciting new business opportunities, particularly in our Industrial Manufacturing division, which will benefit all of our stakeholders and will be announced in due course.”

SUMMARY AND OUTLOOK

H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal, commented: “Aamal Company continues to assess market requirements across the many sectors in which we operate, to expand and diversify our business, and to take the lead in capturing new opportunities. Looking forward, creating new revenue streams either through organic growth or establishing new activities remains the core of our strategy. As an example, we would particularly highlight the expansion and redevelopment work at City Center Doha which is now in an advanced stage, and the expected positive effect it will generate through increased demand for space from tenants. City Center’s future profitability is expected to make up for the temporary fall in profits which we have inevitably seen during the redevelopment phase.

“Aamal Company remains well-placed to take advantage of suitable opportunities as they arise and our cash flow position is looking increasingly strong. Our outlook for the remainder of 2017 and beyond remains positive.”

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