Posted on October 30, 2018

The Board of Directors of Aamal Company Q.P.S.C. (Aamal), one of the region’s fastest growing diversified companies, today announces its financial results for the nine months ended 30 September 2018.

Financial Highlights

  • Group revenue down 23.7% to QAR 953.1m (Q3 2017: QAR 1.25bn), primarily due to the reclassification of two business entities within the Industrial Manufacturing segment from subsidiaries to joint ventures from 1 April 2017
  • Gross profit down 15.3% to QAR 354.9m (Q3 2017: QAR 418.8m)
  • Net underlying profit margins have increased by 2.1 percentage points to 27.9% (Q3 2017: 25.8%)
  • There were no fair value gains on investment properties in neither Q3 2018 nor Q3 2017
  • Total net profit1 down 10.7% to QAR 338.3m (Q3 2017: QAR 379.0m)
  • Net profit attributable to equity holders of Aamal down 4.7% to QAR 336.3m (Q3 2017: QAR 352.9m)
  • Reported earnings per share are down 5.4% at QAR 0.53 (Q3 2017: QAR 0.56)
  • Net capital investment expenditure increased by QAR 6.2m to QAR 78.9m (Q3 2017 QAR 72.7m)

1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests

SUMMARY AND OUTLOOK

Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented: “As we have noted in previous quarters, we continue to feel the impact of the reclassification of two business entities within the Industrial Manufacturing segment from subsidiaries to joint ventures, with a consequent change in their accounting presentation. This change will continue to impact our financial results until after Q4 2018, at which point the change will have fully annualized. “Aside from this, however, we are pleased with our 2018 performance to date which demonstrates the resilience of the private sector and our ability to take advantage of the opportunities offered by the strength of the Qatari economy.

“Looking ahead, we continue to strive to achieve the goals set out in the Qatar National Vision 2030 and remain committed to investigating new opportunities to generate additional revenue streams, either organically through development of our existing business offerings or through the extension of our ever-diversifying business model, to ultimately create and enhance long-term shareholder value”.

H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal, commented: Aamal continues to perform well as we enter the final few months of the year, and in the third quarter we have seen a notably strong performance from our Trading and Distribution segment. “In our Property segment, the redevelopment work at City Centre Doha is progressing and the East Food Court is due to open by year end. Furthermore, several of the refurbished areas are now available for leasing and we are now looking for new tenants to further enhance City Centre.

“In Aamal’s Trading and Distribution segment, revenue and net profit increased by 15% and 4%, respectively. This is largely attributable to Aamal’s success in establishing alternative supply chains. It has also been an exciting quarter for the segment as it has expanded its network of business partnerships to introduce new products and services to the market. “We look forward to building on these successes in the final three months of the year”.

Categories: