Sheikh Faisal bin Qassim Al Thani Chairman of Aamal
DOHA: Aamal Company (Aamal), one of the fastest growing diversified companies in the region, has delivered QR228.9m as net profit attributable to equity holders for the first six months ended June 2018. The group’s gross profit is down by 20.6 percent to QR 243.2m on year-on-year.
Group revenue is down by 33.0 percent to QR652.7m, primarily due to the reclassification of two business entities within the Industrial Manufacturing segment from subsidiaries to joint ventures from 1 April 2017, with a consequent change in their accounting presentation.
Net profit before share in results of associates and joint ventures accounted for using the equity method (net underlying profit) declined 27.0 percent to QR176.2m. Net underlying profit margins have increased by 2.2 percentage points to 27.0 percent. Share in results of associates and joint ventures accounted for using the equity method more than doubled to QR53.9m. Total Company net profit is down 13.7 percent to QR230.1m and the earnings per share slipped by QR0.02 to QR0.36.
Net investment in capital expenditure increased by QR168m to QR218.8m, reflecting enhancements to the Company’s real estate portfolio through the acquisition of a number of prime residential assets.
Commenting on the financial results Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, said: “While it has been a challenging first half of the year due to the ongoing Qatar border blockade, I am pleased to report a highly respectable set of results, yet again demonstrating the resilience of Aamal’s diverse business model.
“It is important to note that as highlighted in previous quarters, the reported year-on-year declines do not accurately reflect the financial reality of Aamal’s performance. These numbers are not like-for-like comparatives due to a change in the accounting presentation of two subsidiaries within our Industrial Manufacturing division which were reclassified as joint ventures. This means they are no longer consolidated on a line-by-line basis, but instead through the equity method.” Overall, revenues for Industrial Manufacturing fell by 75.0 percent and overall net profit by 22.7 percent. This is largely attributable to the changes in accounting treatment for Senyar Industries and Advanced Pipes and Casts Company, both of which are now accounted for as joint ventures having both previously been consolidated as subsidiaries.
Aamal Readymix made significant progress against its expansion plan. Additional stock piles are now complete (increasing the raw material inventory capacity by 100 percent) and a number of its facilities have been upgraded, including the addition of a new central operations control building and the installation of a new recycling plant. Aamal Readymix also met its CSR target of zero percent dust emissions.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal, said: “The diversity of our business model, combined with our tenacity in grasping both organic and non-organic growth opportunities as they arise, particularly those offered by Qatar’s ongoing industrial development, has helped us to both reinforce our strong market position in key sectors and to support Aamal’s resilience and development. We remain well-positioned to look forward to the future with confidence”.
