Aamal Company's Board of Directors Announces Financial Results for the Full Year Ended December 31st, 2016
The Board of Directors of Aamal Company QPSC (“Aamal”), one of the GCC’s fastest growing diversified companies, today announces the financial results for the year ended 31 December 2016
Financial Highlights
- Group revenue marginally down, by 1.8%, to QAR 2,829.1m (2015: QAR 2,882.0m)
- Gross profit up 6.4% to QAR 683.4m (2015: QAR 642.1m)
- Net profit before fair value gains on investment properties (“underlying net profit”) increased 7.3% to QAR 559.3m (2015: QAR 521.3m)
- Net underlying profit margins1 of 17.7% (2015: 16.6%)
- Fair value gains on investment properties of QAR 0.9m (2015: QAR 135.4m)
- Total company net profit2 decreased 14.7% to QAR 560.2m (2015: QAR 656.7m)
- Reported earnings per share decreased 23.1% to QAR 0.73 (2015: QAR 0.95)
- Net capital expenditure in cash terms rose by 10.5% to QAR 126.6m (2015: 114.6m), reflecting the Phase 2 redevelopment works at the City Center Doha shopping mall and fleet expansion at Aamal Maritime Transportation Services (‘AMTS’)
- Financial gearing3 fell to 2.3% (31 December 2015: 3.6%)
1 Excluding share of profit from equity accounted for investments in associates and joint ventures, and fair value gains on investment properties
2 After fair value gains on investment properties but before the deduction of non-controlling interests
3 Net debt to net debt plus total equity (ie. including non-controlling interests)
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal Company QPSC, commented:
“Aamal Company has performed admirably over the past twelve months with underlying profits before fair value gains on investment properties having increased by 7.3%; this has been driven by expansion in the overall margin despite the subdued oil price and the associated retrenchment in customer spending. This is testament to the inherent qualities of our business model: first, the market leading positions that we currently occupy which lends us natural competitive advantages; and secondly, the offering of strength through diversity, so when one area of the business may experience a tightening in general business conditions, there will be others that should be able to more than compensate. As a consequence, I continue to look forward with much confidence as Qatar’s economy continues to grow, underpinned by the country’s Vision 2030 and infrastructure-led development programs.
“Following this solid set of results and reflecting our strong financial position, and in line with always putting shareholders’ best interests first, the Board of Directors will recommend to the General Assembly the distribution of a cash dividend equal to 6% of the paid-up share capital, which is equivalent to QAR 0.60 a share. This is of course subject to approval at the Annual General Assembly Meeting which is due to take place on April 17, 2017.”
BREAKDOWN BY DIVISION
(nb. there may be slight differences due to rounding)
REVENUE
|
QAR m |
2016 |
2015 |
Change % |
|
Industrial Manufacturing |
1,811.7 |
1,752.2 |
+3.4% |
|
Trading and Distribution |
649.9 |
779.4 |
(16.6)% |
|
Property |
317.9 |
325.7 |
(2.4)% |
|
Managed Services |
97.4 |
68.5 |
+42.1% |
|
less: inter-divisional revenue |
(47.7) |
(43.8) |
(8.8)% |
|
TOTAL |
2,829.1 |
2,882.0 |
(1.8)% |
NET PROFIT
|
QAR m |
2016 |
2015 |
Change % |
|
Industrial Manufacturing |
210.4 |
129.41 |
+62.6% |
|
Trading and Distribution |
119.8 |
147.2 |
(18.6)% |
|
Property2 |
258.4 |
275.51 |
(6.2)% |
|
Fair value gains on investment properties |
0.9 |
135.4 |
(99.4)% |
|
Managed Services |
9.8 |
5.5 |
+79.1% |
|
less: Head Office costs |
(39.0) |
(36.2)1 |
(7.7)% |
|
TOTAL |
560.2 |
656.7 |
(14.7)% |
1 Net profit contributions from Aamal’s interests in Frijns Structural Steel and Aamal ECE is now included within Industrial Manufacturing and Property respectively, whereas previously they were netted off against Head Office costs; 2015 comparative numbers have been amended accordingly
2 before fair value gains on investment properties
DIVISIONAL REVIEW
(nb. there may be slight differences due to rounding)
INDUSTRIAL MANUFACTURING
|
QAR m |
2016 |
2015 |
Change % |
|
Revenue |
1,811.7 |
1,752.2 |
+3.4% |
|
Net profit - fully consolidated activities |
156.5 |
93.7 |
+67.0% |
|
Net underlying profit margin % |
8.6% |
5.3% |
+3.3 ppts |
|
Net profit - share of equity accounted for investee net profits |
53.9 |
35.7 |
+51.0% |
|
Total net |
