Doha:– the Board of Directors of Aamal Company Q.P.S.C. (Aamal), one of the Gulf Region’s fastest growing diversified companies, today announces its financial results for the six months ended 30 June 2019.
- Group revenue down 2.6% to QAR 636.1m (H1 2018: QAR 652.7m)
- Gross profit down 7.0% to QAR 226.2m (H1 2018: QAR 243.2m)
- Net profit before share in results of associates and joint ventures accounted for using the equity method (“net underlying profit”) down 19.9% to QAR 141.2m (H1 2018: QAR 176.2m)
- Net underlying profit margins have decreased by 4.8 percentage points to 22.2% (H1 2018: 27.0%)
- Share in results of associates and joint ventures accounted for using the equity method decreased to QAR 41.9m (H1 2018: QAR 53.9m)
- Total Company net profit1 down 20.4% to QAR 183.1m (H1 2018: QAR 230.1m)
- Reported earnings per share2 down QAR 0.01 to QAR 0.03 (H1 2018: QAR 0.04)
- Net investment in capital expenditure decreased by QAR 197.9m to QAR 20.9m (H1 2018 QAR 218.8m), owing to a number of property acquisitions made by Aamal Real Estate in the prior year period
1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests
2 Restated to reflect the stock split implemented in June 2019 (a QFMA initiative requiring QSE-listed companies to split each of its shares into 10).
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:
“The first half of 2019 has been one of strategic development and evolution in an increasingly competitive environment. While many of Aamal Company’s businesses have continued to perform strongly, this has not been enough to offset the fall in our financial results reported in other areas. However, we firmly believe that Aamal’s diversified business model continues to offer both resilience to our external environment and an ongoing pipeline of growth opportunities which we will continue to access throughout the second half of the year.
“We are pleased by the number of strategic initiatives we have implemented across Aamal Company during the first six months of 2019. For example, Ebn Sina Medical has entered into agreements with new strategic partners to significantly broaden and enhance its offering and its new robot pharmacy is now fully open and performing in line with expectations. In the Industrial Manufacturing segment, work is progressing well with previously announced industrial projects for the production of drums and copper rods, driving synergy creation and a reduction in production costs among the subsidiaries of Senyar Industries. In addition, Aamal is actively evaluating other strategic and value enhancing industrial projects to expand its industrial business. In Aamal’s Property segment, despite mounting competition and reduced market rents, we are witnessing a steady rise in demand for property in the residential sector.
“Looking ahead, in addition to pursuing growth opportunities presented by the Qatar National Vision 2030, we will look to further strengthen the financial base of Aamal’s existing businesses. For example, a number of cost control measures are being implemented at Aamal Readymix and we have now formally announced a new sales strategy for Aamal Services to expand the client base and reduce financial risk.
“Finally, I would like to take this opportunity to remind shareholders that on 24 June 2019, Aamal implemented the previously announced 10 for 1 stock split in compliance with the stock split directive issued by the Qatar Financial Market Authority. This market-wide initiative should make trading in Aamal shares more accessible and attractive to retail investors while improving liquidity and trading volumes. Aamal shareholders do not need to take any action because of the stock split and it will not affect the proportionate ownership of existing shareholders.”
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© Press Release 2019