Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal.
DOHA: Aamal Company (Aamal), one of the region’s fastest growing diversified companies, declared QR953.1m in Group revenue for the financial period ended September 2018, down 23.7 percent posted a year ago. The gross profit is down 15.3 percent to QR354.9m year-on-year.
The drop in revenue is primarily due to the reclassification of two business entities within the Industrial Manufacturing segment from subsidiaries to joint ventures from 1 April 2017, Aamal stated.
Aamal’s net underlying profit margins have increased by 2.1 percentage points to 27.9 percent. There were no fair value gains on investment properties in neither Q3 2018 nor Q3 2017. Total net profit was down 10.7 percent to QR338.3m. Net profit attributable to equity holders of Aamal is down by 4.7 percent to QR336.3m.
Reported earnings per share are down 5.4 percent at QR0.53 compared to QR0.56 reported during Q3 2017. Net capital investment expenditure increased by QR6.2m to QR78.9m.
Total Company net profit is before the deduction of net profit attributable to non-controlling interests.
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, commented:“As we have noted in previous quarters, we continue to feel the impact of the reclassification of two business entities within the Industrial Manufacturing segment from subsidiaries to joint ventures, with a consequent change in their accounting presentation.
This change will continue to impact our financial results until after Q4 2018, at which point the change will have fully annualized.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal.
“Aside from this, however, we are pleased with our 2018 performance to date which demonstrates the resilience of the private sector and our ability to take advantage of the opportunities offered by the strength of the Qatari economy.”
Looking ahead, Sheikh Faisal said, Aamal will continue to strive to achieve the goals set out in the Qatar National Vision 2030 and remain committed to investigating new opportunities to generate additional revenue streams, either organically through development of our existing business offerings or through the extension of our ever-diversifying business model, to ultimately create and enhance long-term shareholder value.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal, said: “Aamal continues to perform well as we enter the final few months of the year, and in the third quarter we have seen a notably strong performance from our Trading and Distribution segment.
“In our Property segment, the redevelopment work at City Centre Doha is progressing and the East Food Court is due to open by year end.
Furthermore, several of the refurbished areas are now available for leasing and we are now looking for new tenants to further enhance City Centre.”
In Aamal’s Trading and Distribution segment, he said, revenue and net profit increased by 15 percent and 4 percent, respectively. This is largely attributable to Aamal’s success in establishing alternative supply chains.
It has also been an exciting quarter for the segment as it has expanded its network of business partnerships to introduce new products and services to the market. “We look forward to building on these successes in the final three months of the year,” he added.
