Posted on February 28, 2019

The Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the Gulf region’s fastest growing diversified companies, yersterday announced the financial results for the year ended 31 December 2018.

Financial Highlights

Total revenue down 19.8% to QAR 1,286.6m (2017: QAR 1,604.2m), 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 14.4% to QAR 467.2m (2017: QAR 545.6m)
  • Net profit before share of net profits of associates and joint ventures, accounted for using the equity method and fair value gains on investment properties (“net underlying profit”) down 17.4% to QAR 347.6m (2017: QAR 421.0m)
  • Net underlying profit margins have increased by 0.7 percentage points to 27.0% (2017: 26.3%)
  • Share of net profits from associates and joint ventures accounted for using the equity method decreased 2.0% to QAR 100.0m (2017: QAR 102.0m)
  • There were no fair value gains on investment properties during 2018, or in 2017
  • Total Company net profit1 down 14.4% to QAR 447.6m (2017: 523.1m), with net profit attributable to Aamal equity holders down 11.1% to QAR 445.3m (2017: QAR 500.9m)
  • Reported earnings per share decreased 11.3% to QAR 0.71 (2017: QAR 0.80)
  • Net capital expenditure up 172.0% to QAR 289.6m (2017: 106.5m), reflecting variations in contractor billing profiles that are milestone-based

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

H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal Company Q.P.S.C., commented: “We are proud of our performance in 2018. While the year saw a decline in revenue and net profit compared to 2017, our performance was in line with expectations and impacted by pre-identified, short to medium-term factors. Our 2018 success demonstrates Aamal’s unwavering ability to remain one step ahead of the competition due to our ongoing investment, our ability to take advantage of the opportunities offered by the strength of the Qatari economy, and our agility in responding to challenges. I am delighted to announce a recommended cash dividend of QAR 0.60 a share, subject to approval at the AGM which will take place on 15 April 2019.

“As noted in quarterly results announcements throughout 2018, Aamal continues 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 the first quarter of 2019, at which point the change will have fully annualised. “The year-on-year decline in revenue and net profit was also partly attributable to the Property segment, specifically the continuing re-development of our flagship ‘City Center Doha’ shopping mall. This work continues to progress to schedule and will significantly enhance the longer-term performance of the City Center Doha, despite the short-term impact.

“Our Trading and Distribution segment delivered a particularly strong performance across the year, led by Ebn Sina Medical, a fully-owned subsidiary and Qatar’s leading provider of pharmaceuticals, hospital supplies and consumer health products. Aamal’s Managed Services segment also saw positive results, particularly in terms of operational efficiency, led by ECCO Gulf and Aamal Services. “Turning to our broader market environment, Aamal remains well-positioned in one of the world’s fastest growing and most successful economies. In 2018, the QSE rebounded significantly and was the second-best major stock market in the world in terms of performance. It saw a surge in foreign net inflows, demonstrating the confidence in the outlook for Qatar amongst foreign investors.

“Looking ahead, I remain confident in Aamal’s future, with the Company’s resilient and diversified business model supported by a clearly defined, long-term strategy helping us to achieve sustainable growth for our shareholders. We will continue to explore new opportunities, using our first mover advantage to introduce innovative projects and supporting our beloved country in achieving its National Vision under the wise leadership of the Emir, Sheikh Tamim bin Hamad Al Thani, and the Government of Qatar.”