The Board of Directors of Aamal Company QPSC (Aamal), one of the GCC’s fastest growing diversified companies, today announces its first quarter financial results for the quarter ended 31 March 2017.
- Group revenue up 22.3% to QAR 830.8m (Q1 2016: QAR 679.6m)
- Gross profit up 6.4% to QAR 184.2m (Q1 2016: 173.2m)
- There were no fair value gains on investment properties in Q1 2017 (Q1 2016: nil)
- Total Company net profit1 down 9.1% to QAR 139.7m (Q1 2016: QAR 153.7m)
- Net underlying profit margins2 of 16.6% (Q1 2016: 19.6%)
- Reported earnings per share down 11.4% to QAR 0.18 (Q1 2016: QAR 0.21)
- Net capital investment expenditure fell by QAR 21.2m to QAR 25.1m (Q1 2016 QAR 46.3m), reflecting the Q1 2016 fleet expansion at the Aamal Maritime Transportation Services subsidiary
- Financial gearing3 reduced further to 0.4% (31 December 2016: 2.3%)
1 There were no fair value gains on investment properties in either Q1 2017 or Q1 2016; net profit is stated before the deduction of non-controlling minority interests
2 Excluding share of profit from equity accounted for investments in associates and joint ventures
3 Net debt to net debt plus total equity
Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, said that the first quarter of 2017 has seen their revenues grow very strongly, by more than 22%. He said that this has been driven by a combination of both organic and acquisition means following an upping of the company’s stake in El Sewedy Cables through our 50% owned joint venture, Senyar Industries. Offsetting this revenue growth has been a contraction in their margins, particularly within the Industrial Manufacturing division.
Looking ahead to the rest of 2017, we remain very upbeat, confident that the Company is uniquely positioned to capture and build on the opportunities that continue to present themselves. Visibility is high and Aamal occupies a number of market leading positions across the economic spectrum. Furthermore, this year will see the benefits of the Phase 2 development works at City Center Doha starting to come through with the handover of the first new retail outlets, with the majority following in 2018.
Sheikh Faisal Bin Qassim Al Thani added that Aamal continues to perform very strongly and in accordance with their expectations.
With currently over 35% of our net profit derived from Industrial Manufacturing, we are well placed to continue to be one of the winners as Qatar continues to diversify away from being a hydrocarbon based economy through an intensive government-driven infrastructure development programme, as laid out in the country’s 2030 Vision and accelerated by the FIFA World Cup due to be held in 2022.’