Financial results for the nine months and quarter ended 30 September 2015
Aamal Company QSC (‘Aamal’)
Financial results for the nine months and quarter ended 30 September 2015
23.7% rise in net profits for the nine months to 30 September 2015
Driven by both revenue growth and margin expansion
Doha, 29 October 2015 – the Board of Directors of Aamal Company QSC (“Aamal”), one of the GCC’s fastest growing diversified companies, today announces nine-month and third quarter financial results for the period ended 30 September 2015.
Financial Summary
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Figures in QAR million
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Third Quarter 2015 |
Nine Months 2015 |
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Q3 2015 |
Q3 2014 |
% change |
9M 2015 |
9M 2014 |
% change |
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Revenue |
725.4 |
505.1 |
+43.6% |
2,074.4 |
1,600.6 |
+29.6% |
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Gross profit |
151.0 |
128.4 |
+17.7% |
461.4 |
374.3 |
+23.3% |
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Net profit before fair value gains on investment properties |
119.3 |
93.4 |
+27.7% |
366.7 |
263.3 |
+39.3% |
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Net underlying profit margin 1 % |
15.1% |
16.8% |
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16.4% |
15.3% |
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Fair value gains on investment properties |
0.0 |
33.3 |
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0.0 |
33.3 |
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Total net profit2 |
119.8 |
126.7 |
(5.8)% |
366.7 |
296.6 |
+23.7% |
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Reported earnings per share (QAR) |
0.17 |
0.193 |
(11.9)% |
0.52 |
0.443 |
+18.2% |
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Adjusted underlying earnings per share4 (QAR) |
0.17
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0.143, 4
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+22.1%
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0.52
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0.393, 4
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+33.0% |
1 Before both the fair value gains on investment properties and the share of profits of those investments equity accounted for
2 Before the deduction of non-controlling interests
3 In March 2015, Aamal issued and capitalised bonus shares so prior year EPS figures have been adjusted accordingly (Company share capital increased to QAR 6.3bn from QAR 6.0bn)
4 Adjusted underlying earnings per share excludes the fair value gains on investment properties; Reported earnings per share includes them
Nine month Overview
- Revenue grew by 29.6% to QAR 2,074.4m (9M 2014: QAR 1,600.6m)
- Underlying net profit, so before fair value gains on investment properties, increased by 39.3% to QAR 366.7m (9M 2014: 263.3m)
- Net underlying profit margins, so before such fair value gains on investment properties and the share of profits from equity accounted for investments, saw a further strengthening to 16.4% (9M 2014: 15.3%)
- Compared to the corresponding period in 2014, there were nil fair value gains on investment properties (9M 2014: QAR 33.3m)
- Total net profit for the nine months was up 23.7% to QAR 366.7m (9M 2014: QAR 296.6m)
- Reported earnings per share grew by 18.2% to QAR 0.52 (9M 2014 QAR 0.44); adjusted to exclude fair value gains on investment properties, underlying earnings per share growth was 33.0%
- Capital expenditure in the period was QAR 108.4m (9M 2014: QAR 84.2m)
- Financial gearing remaining low at 6.2% at 30 September 2015 (30 June 2015: 6.2%)
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:
“Aamal has recorded very strong results for the first nine months of 2015. Revenues increased by near 30%, and net profits increased by 23,7% to reach QAR 366.7m .
“The principal source of this growth has been from our Industrial Manufacturing division, which saw an increase in sales in excess of 50%,. This gradual repositioning of Aamal to be a company with primarily an industrial focus is integral to its strategic longer term vision; as Qatar continues to develop and modernise, significant opportunities are being afforded, particularly in the development of the nation’s infrastructure. It is Aamal’s intention to capitalise on such opportunities and remain at their forefront.
“Notwithstanding the above however, we should not overlook the excellent contributions made by our Property, and Trading and Distribution divisions.. By retaining strong market positions in these sectors, Aamal offers balanced and high quality exposure to the wider Qatari economy as it continues to diversify away from being hydrocarbon dependent. Aamal is one of the few Qatari companies with the business model to benefit across the economic spectrum, and our proven track record in producing superior returns bears testimony to this.”
SUMMARY AND OUTLOOK
H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman of Aamal, commented:
“The first nine months of 2015 have been very strong for Aamal. Our revenues have grown significantly, as we have consolidated and built on our market leadership positions, yet this has not been at the expense of profitability, as margins have expanded too.
“Whilst obviously very pleasing, this performance should not altogether come as a great surprise. We have always had a focus on operational excellence, with a clear focus on capital discipline. We pride ourselves too on our pioneering entrepreneurship and ability to identify opportunities early on that not only helps us to maintain organic growth from existing operations, but also to access new strategic growth initiatives, often in partnership with leading multinationals where we do not possess the requisite skills or experience internally. The recent decision to expand into maritime transportation through the establishment of a new subsidiary, Aamal Maritime for Transportation Services, is an excellent example of this approach.
“This approach to doing business at Aamal is well-established, has served us well, and I firmly believe will continue to do so. We are a leading and pioneering participant across various key economic growth sectors, with the financial firepower to capitalise on the growth opportunities that are presenting themselves as Qatar continues to develop and diversify.”
Tarek M. El Sayed, Managing Director of Aamal, commented:
“Aamal has performed very well over this quarter, sustaining the strong momentum that was reported on at our half year results back in July. Growth in revenues has been very strong, which when accompanied by the expansion in margins, has led to very significant earnings growth. The cornerstones of our continued success are the focus on operational excellence and innovation across our existing market leading businesses allied with a continued application of a clear and disciplined approach to strategic growth initiatives. This is supported by a proven track record of financial and operating performance, and we believe this business model makes us best placed to capture the growth opportunities that Qatar is presenting.”
Further enquiries
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Aamal Company
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+ 974 4435 0666 |
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Arwa Goussous, Corporate Communications Manager (mobile # +974 5513 9539) |
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Citigate Dewe Rogerson
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Nick Cox-Johnson (mobile # +44 (0)7957 596 729)
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Andrew Hey (mobile # +44 (0)7903 028 448)
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Shabnam Bashir (mobile # +44 (0)7903 849729)
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Ramiz Al-Turk (Arabic media) (mobile # +974 5014 9201) |
About Aamal Company QSC
Aamal Company is one of the GCC’s fastest growing diversified conglomerates, with a market capitalisation at 28 October 2015 of QAR 8.9bn (US$ 2.4bn), delivering a compound annual growth rate in net profit before fair value gains on investment properties in excess of 13% from 2006-2014 and generating annual revenues of QAR 2,139m (US$ 588m) in 2014. Focused on sustained, profitable growth and strongly diversified for balanced exposure across Qatar’s rapidly growing economy, Aamal’s operations comprise 24 business units with market leading positions in the key industrial, retail, property, managed services and medical equipment and pharmaceutical sectors. Aamal is one of the largest diversified companies quoted on the Qatar Stock Exchange, having been listed since December 2007, and is a constituent member of the QE Index which is a measure of the 20 largest and most liquid stocks listed on the Qatar stock market.
For further information on Aamal Company and the full financial statements for the nine months ended 30 September 2015, please refer to the corporate website: http://www.aamal.com.qa
End of Release
