Financial Results for the nine months ended 30 September 2019
Aamal Company Q.P.S.C. (‘Aamal’)
Financial Results for the nine months ended 30 September 2019
Aamal reports net profit of QAR 259.6m and Earnings Per Share of QAR 0.04
FINANCIAL HIGHLIGHTS
- Group revenue down 0.8% to QAR 945.3m (Q3 2018: QAR 953.1m),
- Gross profit down 5.0% to QAR 337.1m (Q3 2018: QAR 354.9m)
- Net underlying profit margin decreased by 5.4 percentage points to 22.5% (Q3 2018: 27.9%)
- Net profit before share in results of associates and joint ventures, accounted for using the equity method (“net underlying profit”), down 20% to QAR 212.3m (Q3 2018: QAR 265.5m)
- Share in results of associates and joint ventures accounted for using the equity method decreased 35% to QAR 47.3m (Q3 2018: QAR 72.8m)
- Total Company net profit down 23.2% to QAR 259.6m (Q3 2018: QAR 338.3m)
- Reported earnings per share down 20% at QAR 0.04 (Q3 2018: QAR 0.05)
- Net investment in capital expenditure decreased by QAR 226.1m to QAR 32.3m (Q3 2018 QAR 258.4m), owing to a number of property acquisitions made by Aamal Real Estate in the prior year period.
SUMMARY AND OUTLOOK
Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:
“We continue to operate in a challenging market environment characterised by a slowdown in major infrastructure projects and increased market competition, which has impacted pricing and margins across Aamal, particularly within the Industrial Manufacturing segment. This, together with increased finance costs associated with a loan agreed in late 2018, has resulted in a year-on-year decline in net profit in the quarter of 23.2%.
“Despite these headwinds, the Trading and Distribution segment delivered strong and growing sales volumes and looking ahead, we are encouraged to see a number of positive developments across the business, including initial signs of improving conditions in the Industrial Manufacturing segment as well as the execution of new long term corporate residential rental agreements that will result in higher occupancy rates within the Property segment.
“Aamal’s diversified business model and financial strength, coupled with Qatar’s preparation for the 2022 FIFA World Cup and other planned projects forming part of the Government’s 2030 National Vision, means we are well-positioned to take advantage of the opportunities presented by the Qatari economy and we remain confident in the future outlook for Aamal.”
H.E. Sheikh Mohamed Bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal, commented:
“As Aamal continues to navigate Qatar’s challenging market environment, we remain strongly committed to financial and operational enhancement. This is reflected in Aamal’s continuing financial resilience and 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. We also assess on an ongoing basis the operations of our existing businesses to enhance their market positions and optimise performance while also evaluating new business opportunities that will add value to our business model.
“Furthermore, environmental, social and governance considerations are becoming increasingly embedded in the way we do business and are vital to achieving sustainable growth. Current initiatives include the development of Aamal’s governance code, to ensure we adopt the highest levels of corporate standards and policies, and the recent completion of the design of Aamal’s internal control over financial reporting framework (ICOFR).”
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CONFERENCE CALL DETAILS
A conference call to discuss the results will be held on 3 November 2019 at 14:00 Doha / 11:00 UK. The details for the conference call are as follows:
Date: Sunday, 3 November 2019
Time: 14:00 Doha / 11:00 UK
Dial-In Numbers: Qatar Toll-Free: 00 800 100 459
UK & International: +44 330 336 9411
USA: +1 929 477 0402
Conference ID: 7622269
Please join the event conference 5-10 minutes prior to the start time. You will be asked to provide the confirmation code, speaker name or the title of your conference.
Replay Service:
Replay will be available from 3 November 2019 starting at 17:00hrs Doha Time until 5 November 2019 at 17:00 Doha Time with the following dial in details:
UK & International: +44 207 660 0134
USA: +1 719 457 0820 /
Conference ID: 7622269
FURTHER ENQUIRIES
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Aamal Company |
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Arwa Goussous, Corporate Communications Manager |
T: +974 4422 3888) |
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Mira Al Ahmad – Senior Corporate Communications Officer |
T: +974 3366 9640) |
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Laura Ackel – Corporate Communications Officer |
T: +974 6671 6576) |
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Citigate Dewe Rogerson (IR/PR Advisor) |
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Lucy Eyles |
T: +44 (0)7525 951 207) |
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Andrew Hey |
T: +44 (0)7903 028 448) |
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Toby Moore |
T: +44 (0)7768 981 763) |
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Ramiz Al-Turk (Arabic media) |
E: +974 5014 9201 |
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ABOUT AAMAL COMPANY Q.P.S.C.
Aamal is one of the Gulf region’s most diversified conglomerates and has been listed on the Qatar Stock Exchange since December 2007. As at 28 October 2019, the Company had a market capitalisation of QAR 4.4bn (US$ 1.3bn).
Aamal’s operations are widely diversified and comprise 26 active business units (subsidiaries and joint ventures) with market leading positions in the key industrial, retail, property, managed services, and medical equipment and pharmaceutical sectors, thereby offering investors a high quality and balanced exposure to Qatar’s wider economic growth and development. Aamal is focused on self-financed and profitable growth, delivering an average increase in underlying profits in excess of 11.1% (i.e. before fair value gains on investment properties) over the twelve years to end-2018.
For further information on Aamal Company, please refer to the corporate website: http://www.aamal.com.qa
End of Release
