The Board of Directors of Aamal Company Q.P.S.C. (Aamal), one of the Gulf Region’s fastest growing diversified companies, today announces its financial results for the first quarter ended 31 March 2019.
Financial Highlights
- Group revenue up 4.4% to QAR 321.7m (Q1 2018: 308.2m) following a particularly strong performance from Aamal’s Trading and Distribution segment
- Gross profit up 1.5% to QAR 118.8m (Q1 2018: QAR 117.1m)
- Net profit before share of net profits of associates and joint ventures accounted for using the equity method (“net underlying profit”) down 5.7% to QAR 80.0m (Q1 2018: QAR 84.9m); this was due to challenges during the quarter in the Industrial Manufacturing segment and costs associated with financing investments in line with our growth strategy
- Net underlying profit margins have decreased by 2.6 percentage points to 24.9% (Q1 2018: 27.5%)
- Share of net profits from associates and joint ventures accounted for using the equity method decreased 44.7% to QAR 17.3m (Q1 2018: QAR 31.2m)
- There were no fair value gains on investment properties in either Q1 2019 or Q1 2018
- Total Company net profit1 was down 16.2% to QAR 97.3m (Q1 2018: QAR 116.1m), with net profit attributable to Aamal equity holders down 16.7% to QAR 96.5m (Q1 2018: QAR 115.8m)
- Reported earnings per share down 16.7% to QAR 0.15 (Q1 2018: QAR 0.18)
- Net capital expenditure decreased by QAR 199.5m to QAR 9.0m (Q1 2018 QAR 208.6m). The higher capital investment expenditure in Q1 2018 reflected enhancements to the company’s real estate portfolio through the acquisition of a number of prime residential assets.
1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests
SUMMARY AND OUTLOOK
H.E. Sheikh Faisal Bin Qassim Al Thani (pictured left), Chairman of Aamal, commented: “With revenues rising more than 4% in the first quarter of 2019, Aamal’s performance exemplifies the advantages and resilience which our diversified business model provides. Temporary headwinds impacted performance in our Industrial Manufacturing segment but this was partly offset by the positive trading results generated by our Trading and Distribution and Property segments and we expect the performance of Industrial Manufacturing to progressively improve.
In line with our established and successful strategy, we remained committed to ongoing investments, so ensuring that we are able to take advantage of the many opportunities presented by the strength of the Qatari economy and that we are always one step ahead of the competition. Financing these investments led to an increase in our financing costs which impacted profitability.
We remain positive about the outlook for the remainder of 2019; the overall economic outlook is encouraging and we expect Aamal to continue to benefit from the opportunities generated by both the economy and the Qatar National Vision 2030. Furthermore, we are currently evaluating a number of exciting, midstream industrial projects; those which we decide to proceed with will be announced in due course. Finally, I should also like to take this opportunity to remind shareholders that Aamal intends to implement its previously announced 10 for 1 stock split on 24 June 2019. This will ensure compliance with the stock split directive issued by the Qatar Financial Market Authority to all Qatar Stock Exchange listed companies.”
H.E. Sheikh Mohamed Bin Faisal Al Thani (pictured right), Chief Executive Officer and Managing Director of Aamal, commented: “We are pleased to report a 4.4% year-on-year increase in revenue, with revenue up in three of our four segments. Revenue in our Industrial Manufacturing segment was impacted by temporary delivery delays which are expected to progressively improve during the second quarter. Our Trading and Distribution segment undoubtedly delivered the most pleasing performance, despite intensified market competition, delivering year-on-year growth of 14% and 11% in revenue and net profit, respectively.
Overall, Aamal remains well-placed to prosper during 2019 and we look forward to the coming months with confidence.”
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