Financial Results for the full year ended 31 December 2017
Net profit attributable to equity holders QAR 0.5 billion (QAR 500.9m)
Earnings per share increase 9.6%
Proposed cash dividend of 6% (QAR 0.60 a share)
Doha, 28 February 2018 – the Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the Gulf region’s fastest growing diversified companies, today announces the financial results for the year ended 31 December 2017
Financial Highlights
- Total revenue down 43.3% to QAR 1,604.2m (2016: QAR 2,829.1m), primarily due to the reclassification of two business entities within the Industrial Manufacturing division from subsidiaries to joint ventures, with a consequent change in their accounting presentation
- Gross profit down 20.2% to QAR 545.6m (2016: QAR 683.4m)
- 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 15.7% to QAR 421.0m (2016: QAR 499.2m)
- Net underlying profit margins have increased by 8.7 percentage points to 26.3% (2016: 17.6%)
- Share of net profits from associates and joint ventures accounted for using the equity method increased 69.4% to QAR 102.0m (2016: QAR 60.2m)
- There were no fair value gains on investment properties during 2017 (2016: QAR 0.9m)
- Total Company net profit1 down 6.6% to QAR 523.1m (2016: 560.2m), with net profit attributable to Aamal equity holders up 8.4% to QAR 500.9m (2016: QAR 462.3m)
- Reported earnings per share increased 9.6% to QAR 0.80 (2016: QAR 0.73)
- Net capital expenditure down 16.8% to QAR 106.5m (2016: 128.0m), reflecting fluctuations in contractor billing profiles that are milestone-based
- Net positive cash position of QAR 113.1m (30 June 2017: net positive cash of QAR 134.7m)
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:
“While the continuing blockade by a number of neighboring Gulf countries has undoubtedly created some challenging headwinds, I am very proud to say that Qatar as a nation is successfully navigating through them. I believe this is testimony not only to the resilience of the Qatari economy but also to the strong and clear leadership that our national government provides as we strive to achieve the holistic goals set out in the Qatar National Vision, including diversification of the economy. I must also mention the resourcefulness of the Qatari people in meeting these challenges head on, as they did in previously demanding times including the global slump post-2007 and the oil price lows of early 2016.
“It gives me very great pleasure also to report that Aamal has been at the forefront here, managing to grow its earnings per share by almost 10% over the year with annual net profits attributable to Aamal shareholders now exceeding QAR 500m (QAR 500.9m), which in the current climate is a very impressive result indeed. I should also add that these are probably the most relevant indicators of performance as some year- on-year comparatives are now not on a true like-for-like basis (revenue in particular) due to the change in the accounting presentation of a couple of business entities during the year, thereby rendering them largely meaningless. People should be made aware that the effects of this change will remain valid until after Q4 2018, by which time they will have reversed out.
“Aamal has always been noted for its practicality and decisiveness, and no better is this demonstrated than by how rapidly we moved to help establish alternative supply chains in the face of the continuing embargo against Qatar. This resilience is also borne out by the diversity of our business model, so that if one sector is experiencing a tightening in general business conditions for example, there will be others that are able to more than compensate.
“Allied to this is Aamal’s strong financial position and cash generation which means that should we identify a potential value-creating opportunity, we are able to act quickly, often giving us a competitive advantage over our peers. An excellent example of this is the decision we announced in early January to proceed with three major new industrial projects which will be the first of their kind in Qatar, having applied for the necessary approvals in 2017. Not surprisingly, we are also the partner of choice for those international blue-chip names looking to enter the Qatari market for the first time.
“As such, I am looking forward to reporting sustained growth, along with improvements in our operational performance, as we continue to seek attractive opportunities. I am also pleased to announce that Board of Directors has recommended a cash dividend QAR 0.60 a share (equivalent to 6% of paid-up share capital), subject to the approval at the Annual General Assembly Meeting which is due to take place on April 22, 2018.”
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BREAKDOWN BY SEGMENT
(nb. there may be slight differences due to rounding)
REVENUE
|
QAR m |
2017 |
2016 |
Change % |
|
Industrial Manufacturing |
582.2 |
1,811.7 |
(67.9)% |
|
Trading and Distribution |
633.3 |
649.9 |
(2.5)% |
|
Property |
320.9 |
317.9 |
+1.0% |
|
Managed Services |
95.3 |
97.4 |
(2.2)% |
|
less: inter-divisional revenue |
27.6 |
47.7 |
(42.1)% |
|
TOTAL |
1,604.2 |
2,829.1 |
(43.3)% |
NET PROFIT
|
QAR m |
2017 |
2016 |
Change % |
|
Industrial Manufacturing |
167.8 |
210.4 |
(20.2)% |
|
Trading and Distribution |
116.2 |
119.8 |
(3.0)% |
|
Property1 |
268.1 |
258.4 |
+3.8% |
|
Fair value gains on investment properties |
0.0 |
0.9 |
(100.0)% |
|
Managed Services |
7.0 |
9.8 |
(28.1)% |
|
less: Head Office costs |
36.1 |
39.0 |
(7.5)% |
|
TOTAL |
523.1 |
560.2 |
(6.6)% |
1 before fair value gains on investment properties
SEGMENTAL REVIEW
(nb. there may be slight differences due to rounding)
INDUSTRIAL MANUFACTURING
|
QAR m |
2017 |
2016 |
Change % |
|
Revenue |
582.2 |
1,811.7 |
(67.9)% |
|
Net profit - fully consolidated activities |
71.2 |
156.5 |
(54.5)% |
|
Net underlying profit margin % |
