Aamal Company's Financial Results for the full year ended 31 December 2019
Aamal Company Q.P.S.C. (“Aamal”)
Financial Results for the full year ended 31 December 2019
Total revenue up 0.6% year-on-year
Proposed cash dividend of 4% (QAR 0.04 a share)
Doha, 18 February 2020 – the Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the Gulf region’s leading diversified companies, today announces the financial results for the year ended 31 December 2019.
Financial Highlights
- Total revenue up 0.6% to QAR 1,294.1m (2018: QAR 1,286.6m), primarily due to a strong performance in the Trading and Distribution segment
- Gross profit down 7.1% to QAR 434.0m (2018: QAR 467.2m)
- 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 25.2% to QAR 259.9m (2018: QAR 347.6m)
- Net underlying profit margins decreased by 6.9 percentage points to 20.1% (2018: 27.0%)
- Share of net profits from associates and joint ventures accounted for using the equity method decreased 37.8% to QAR 62.3m (2018: QAR 100.0m)
- There were no fair value gains or losses on investment properties in 2019 or 2018
- Total Company net profit1 down 28.0% to QAR 322.1m (2018: QAR 447.6m), with net profit attributable to Aamal equity holders down 27.6% to QAR 322.3m (2018: QAR 445.3m)
- Reported earnings per share2 decreased 27.6% to QAR 0.05 (2018: QAR 0.07)
- Net capital expenditure down 83.4% to QAR 48.2m (2018: QAR 289.7m), owing to a number of property acquisitions made by Aamal Real Estate in the prior year period and not repeated in 2019
1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests.
2Restated to reflect the stock split implemented in June 2019 (a QFMA initiative requiring QSE-listed companies to split each of its shares into 10).
Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:
“Although 2019 saw significant market headwinds in the construction industry, our diverse business model continued to prove highly resilient and Aamal responded positively in this challenging environment.
“I am particularly pleased by the progress made by our Trading and Distribution segment, which achieved robust top line growth in the year, and by the significant progress made in regards to the renovation works at City Center Doha, which increases the leasable area of the mall and is expected to drive increased occupancy. Aamal Real Estate also increased its occupancy levels through a number of major corporate agreements which, coupled with the renovation of City Center Doha, is expected to improve the overall performance of the Property segment.
“I am confident that we can continue to turn challenges into opportunities as we further build our business across all segments. We enjoy a strong market position across all the areas in which we operate, supported by a solid financial position and highly capable people across the business.
“2019 marked a year of significant development in terms of how we embed environmental, social and governance considerations in the way we do business to achieve sustainable growth. In addition to further strengthening Aamal’s Board and Executive Team through new appointments, we developed a governance code to ensure Aamal is aligned with the highest levels of corporate standards and policies, and implemented a code of conduct policy and a whistleblowing mechanism for all employees to ensure they are able to act if they encounter any potential breaches of our standards. Furthermore, in 2019 we successfully completed the design and testing of an Internal Control over Financial Reporting (ICoFR) framework.
“2020 will see the benefits of several strategic initiatives come to fruition including the conclusion of the renovation works at City Center Doha. Furthermore, we are currently evaluating a number of exciting, strategic midstream industrial projects and look forward to announcing in due course those we decide to progress.
“For Aamal, the outlook for 2020 is positive. The long-term economic outlook is encouraging and we expect to continue to benefit from the opportunities generated by both the economy and the Qatar National Vision 2030. We remain committed to financial and operational enhancements, as reflected in Aamal’s strong track record of sustainable growth over the past decade, both organically and through new business partnerships. Our corporate strategy remains clear and consistent as we continue to focus on generating shareholder value through profitable growth and diversification.”
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BREAKDOWN BY SEGMENT
(Notes: there may be differences due to rounding)
REVENUE
|
QAR m |
2019 |
2018 |
Change % |
|
Industrial Manufacturing |
169.1 |
230.5 |
(26.6)% |
|
Trading and Distribution |
799.6 |
696.4 |
14.8% |
|
Property |
290.1 |
295.4 |
(1.8)% |
|
Managed Services |
63.2 |
96.7 |
(34.7)% |
|
less: inter-divisional revenue |
(27.9) |
(32.4) |
(14.0)% |
|
TOTAL |
1,294.1 |
1,286.6 |
0.6% |
NET PROFIT
|
QAR m |
2019 |
2018 |
Change % |
|
Industrial Manufacturing |
52.6 |
101.5 |
(48.2)% |
|
Trading and Distribution |
98.9 |
125.3 |
(21.1)% |
|
Property |
223.9 |
241.1 |
(7.1)% |
|
Fair value gains on investment properties |
0.0 |
0.0 |
- |
|
Managed Services |
5.7 |
8.2 |
(29.7)% |
|
less: Head Office costs |
(59.0) |
(28.5) |
(107.5)% |
|
TOTAL |
322.1 |
447.6 |
(28.0)% |
SEGMENTAL REVIEW
(Note: There may be slight differences due to rounding)
INDUSTRIAL MANUFACTURING
|
QAR m |
2019 |
2018 |
Change % |
|
Revenue |
169.1 |
230.5 |
(26.6)% |
|
Net profit - fully consolidated activities |
(1.5) |
6.9 |
(121.5)% |
|
Net underlying profit margin % |
(0.9)% |
3.0% |
(3.9) ppts |
|
Share of net profit of associates and joint ventures accounted for using the equity method |
