Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal
DOHA: Aamal Company, the region’s one of the most diversified conglomerates, reported a gross profit of QR337.1m for the nine-months ended September 2019, down 5.0 percent compared to the third quarter of 2018. The Group revenue slipped 0.8 percent to QR945.3m during the period against Q3, 2018.
Net profit before share in results of associates and joint ventures, accounted for using the equity method (“net underlying profit”), down 20 percent to QR212.3m. Total Company net profit is down 23.2 percent to QR259.6m against QR338.3m posted in Q3,2018.
The Group’s reported earnings per share were down 20 percent at QR0.04 from QR0.05 of Q3, 2018. Net investment in capital expenditure decreased by QR226.1m to QR32.3m, owing to a number of property acquisitions made by Aamal Real Estate in the prior year period.
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 percent.
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, the Chairman said.
“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”, Sheikh Faisal said.
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 enhancements. 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.” Sheikh Mohamed said 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).
