Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal
Aamal Company, one of the fastest growing diversified companies in Qatar and the region, has reported its group revenues for the first quarter of this year ended March 31 (Q1 2019) increased by 4.4 percent to QR321.7m compared to QR308.2m for the corresponding period last year.
The surge in revenues was due to particularly strong performance from Aamal’s Trading and Distribution segment. Gross profit of the group for the period was up 1.5 percent to QR118.8m compared to QR117.1m Q1 2018.
Net profit before share of net profits of associates and joint ventures accounted for using the equity method (net underlying profit) down 5.7 percent to QR80.0m (Q1 2018: QR84.9m); this was due to challenges during the quarter in the Industrial Manufacturing segment and costs associated with financing investments in line with our growth strategy.
Net underlying profit margins have decreased by 2.6 percentage points to 24.9 percent (Q1 2018: 27.5 percent). Share of net profits from associates and joint ventures accounted for using the equity method decreased 44.7 percent to QR17.3m against QR31.2m in Q1 2018.There were no fair value gains on investment properties in either Q1 2019 or Q1 2018.
Total net profit of the company was down 16.2 percent to QR97.3m (Q1 2018: QR116.1m), with net profit attributable to Aamal equity holders down 16.7 percent to QR96.5m (Q1 2018: QR115.8m), earnings per share was down 16.7 percent to QR0.15 (Q1 2018: QR 0.18).
Net capital expenditure decreased by QR199.5m to QR9m (Q1 2018 QR208.6m). The higher capital investment expenditure in Q1 2018 reflected enhancements to the company’s real estate portfolio through the acquisition of a number of prime residential assets.
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, said: “With revenues rising more than 4 percent in the first quarter of 2019, Aamal’s performance exemplifies the advantages and resilience which our diversified business model provides.
Temporary headwinds impacted performance in our Industrial Manufacturing segment but this was partly offset by the positive trading results generated by our Trading and Distribution and Property segments and we expect the performance of Industrial Manufacturing to progressively improve.”
He added: “In line with our established and successful strategy, we remained committed to ongoing investments, so ensuring that we are able to take advantage of the many opportunities presented by the strength of the Qatari economy and that we are always one step ahead of the competition. Financing these investments led to an increase in our financing costs which impacted profitability.”
Sheikh Mohamed bin Faisal Al Thani, CEO and Managing Director of Aamal, said: “We are pleased to report a 4.4 percent year-on-year increase in revenue, with revenue up in three of our four segments. Revenue in our Industrial Manufacturing segment was impacted by temporary delivery delays which are expected to progressively improve during the second quarter. Our Trading and Distribution segment undoubtedly delivered the most pleasing performance, despite intensified market competition, delivering year-on-year growth of 14 percent and 11 percent in revenue and net profit, respectively.”
He added: “Overall, Aamal remains well-placed to prosper during 2019 and we look forward to the coming months with confidence.”
