Financial Results for the full year ended 31 December 2014
For release 3 February 2015
Aamal Company QSC (“Aamal”)
Financial Results for the full year ended 31 December 2014
Net profit up 17.2%, driven by margin expansion
Board of Directors recommends 10% Cash Dividend and 5% in Bonus Shares
Doha, 3 February 2015 – the Board of Directors of Aamal Company QSC (“Aamal”), one of the GCC’s fastest growing diversified companies, today announces the financial results for the year ended 31 December 2014.
Financial Highlights1
- Group revenue up 0.8% to QAR 2,139.1m (2013: QAR 2,122.6m)
- Total net profit 2 increased 17.2% to QAR 600.2m (2013: QAR 512.3m)
- Net profit before fair value gains on investment properties increased 30.4% to QAR 348.5m (2013: QAR 267.2m)
- Net underlying profit margins 3 of 15.4% (2013: 11.7%)
- Fair value gains on investment properties of QAR 251.7m (2013: QAR 245.1m)
- Adjusted 4 underlying earnings per share increased 24.3% to QAR 0.54 (2013: QAR 0.44)
- Reported 4 earnings per share increased 13.9% to QAR 0.96 (2013: QAR 0.85)
- Gross investment in capital expenditure fell by 41.1% to QAR 92.9m (2013: QAR 157.6m), as Phase 1 of the City Center Doha expansion
- project and the Advanced Pipes and Cast Company plant were largely completed during 2013
- Financial gearing 5 reduced to 4.5% (31 December 2013: 6.6%)
1 There may be slight calculation discrepancies due to rounding
2 After fair value gains on investment properties but before the deduction of non-controlling interests
3 Excluding share of profit from equity accounted for investments in associates and joint ventures
4 Adjusted underlying earnings per share excludes the fair value gains on investment properties; Reported earnings per share includes them
5 Net debt to net debt plus equity
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal Company QSC, commented:
“I am pleased to report excellent results for 2014. We have managed to grow our total net profit by over 17% to exceed QAR 600 million for the first time, with earnings per share rising by almost 14%. Excluding the net fair value gains on investment properties which were largely flat at QAR 251.7 million, net profit was up by 30%. Today’s results extend Aamal’s proud and long-established track record of profit growth and value creation underpinned by a clear focus on efficient capital allocations and returns.
In 2014, we established Aamal Optical Supplies in partnership with Qatar Optics, one of the leading companies in this sector, which is involved in the import, manufacture and distribution of prescription lenses and contact lenses. It is also the intention to open a specialised optical medical centre in the near future that will diversify operations and revenue channels further, and allow us to capitalise on opportunities in this fast-growing sector.
Another important milestone was the start of commercial production at Advanced Pipes Company following construction of its state of the art factory in Mesaieed. A total of QAR 200 million (US$ 55m) has been invested in establishing this new facility which specialises in the manufacture of concrete pipe products to supply infrastructure and pipeline projects both in Qatar and across the region.
Given the outstanding performance of the Company, the Board of Directors recommends a 10% cash dividend and 5% in bonus shares to be approved by the General Assembly meeting which will take place on 16 March 2015.
As Qatar continues to prosper and diversify its industrial base under the wise leadership of H.H. the Emir of Qatar Sheikh, Tamim Bin Hamad Al Thani, Aamal remains very much at the vanguard of this growth. It is the ‘best in class’ in terms of the products and services it is able to offer, and continues to be the partner of choice for those blue chip companies wishing to enter Qatar, bringing market leading knowledge and skills with them.”
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BREAKDOWN BY DIVISION
(nb. there may be slight differences due to rounding)
REVENUE
|
QAR m |
2014 |
2013 |
Change % |
|
Industrial Manufacturing |
1,134.2 |
1,261.2 |
(10.1)% |
|
Trading and Distribution |
728.8 |
585.8 |
24.4% |
|
Property |
288.8 |
261.6 |
10.4% |
|
Managed Services |
64.2 |
86.3 |
(25.6)% |
|
less: inter-divisional revenue |
(76.8) |
(72.2) |
|
|
TOTAL |
2,139.1 |
2,122.7 |
0.8% |
NET PROFIT
|
QAR m |
2014 |
2013 |
Change % |
|
Industrial Manufacturing |
51.7 |
22.6 |
128.3% |
|
Trading and Distribution |
114.9 |
86.5 |
32.8% |
|
Property (ex-fair value gains on investment properties) |
223.3 |
200.8 |
11.2% |
|
Fair value gains on investment properties |
251.7 |
245.1 |
2.7% |
|
Managed Services |
8.3 |
5.2 |
60.1% |
|
less: Head Office costs |
(49.7) |
(47.9) |
3.8% |
|
TOTAL |
600.2 |
512.3 |
17.2% |
DIVISIONAL REVIEW
(nb. there may be slight differences due to rounding)
INDUSTRIAL MANUFACTURING
|
QAR m |
2014 |
2013 |
Change % |
|
Revenue |
1,134.2 |
1,261.2 |
(10.1)% |
|
Net profit: fully consolidated activities |
33.6 |
4.1 |
711.4% |
|
Net underlying profit margin % |
3.0% |
0.3% |
+270 bps |
|
Net profit: share of equity accounted for investee net profits |
18.1 |
18.5 |
(2.0)% |
|
Total net profit |
51.7 |
22.6 |
128.3 % |
Net profit grew by 128.3% to QAR 51.7 million, driven principally by a 270 basis point improvement in the net margin to 3.0%.
The improvement was due mainly to an acceleration in infrastructure project build in Qatar, translating into an increase in demand for various products offered by this division.
An important milestone reached was the start of the commercial production at the Advanced Pipes and Casts Company in the last quarter of 2014; initial trading signs have been very positive with the winning of several key orders and we foresee positive performance for this unit during 2015.
TRADING AND DISTRIBUTION
|
QAR m |
2014 |
2013 |
Change % |
