31/07/2017 06:11 AST
Aamal Company (Aamal) has reported a group revenue of QR974.5m for the first half of the current financial year ended June 30, 2017 (H1,2017), 30 percent down compared to QR1.39bn reported during the same period last year (H1,2016). The fall in revenue was primarily due to the loss of control of two subsidiaries.
Aamal is one of the fastest growing diversified companies in the Gulf region.
"The first six months of 2017 saw a fall in revenue and profits compared to the first half of the previous year," said Sheikh Faisal bin Qassim Al Thani, Chairman, Aamal.
"This was the result of a variety of factors including ongoing redevelopment work at City Centre Doha and several one-off contracts being awarded in 2016, as well as loss of control of two subsidiaries in our Industrial Manufacturing division which have affected the presentation of our financials and comparison with the first six months of 2016," he said in a statement issued yesterday.
The H1, 2017 gross profit of Aamal fell by 13.8 percent to QR306.2m, compared to QR355.3m during the same period in the last financial year.
The total net profit fell by 12.8 percent to QR266.6m in H1,2017 from QR305.5m in H1, 2016. The profit attributable to equity holders was down by 6 percent at QR240.3, while the earnings per share was down by 7.3 percent at QR0.38 percent compared to H1, 2016.
The overall revenues for Industrial Manufacturing fell by 43.4 percent and overall net profit by 37.7percent, although the net underlying profit margin increased marginally.
"The division was affected by accounting treatment changes due to loss of control of Senyar Industries and Advanced Pipes and Casts Company, both of which became accounted for as joint ventures from April 1, 2017 having both previously been consolidated. Additionally, some subsidiaries in this division have seen increased market competition which has led to them
Meanwhile, in the Trading and Distribution division, revenue fell by 12.8 percent and profit by 12.6 percent. "This was primarily due to a fall in net profits at one of the division's subsidiaries which had benefited in 2016 from winning and completing several one-off contracts which, as expected, were not repeated in the first half of 2017."
"Although Aamal Real Estate saw a slight increase in net profit, our Property division was impacted by the ongoing expansion and redevelopment of City Centre Doha, one of the leading shopping malls in Qatar. While this work remains on track for completion in 2018, it inevitably had an impact on profitability as some spaces available for retail remain under development," he added.
The chairman stressed that while revenues grew by 2.3 percent, the fall in net profit was mainly due to changes in consumer behaviour during the holy month of Ramadan, "impacting our subsidiaries involved in providing travel and entertainment services."
"We are currently re-evaluating our supply chain processes and examining several new business opportunities, particularly in our Industrial Manufacturing division, initiatives which we are confident will help contribute to Aamal's future growth,"the chairman said.
During the period, Aamal Real Estate also began construction of a residential building containing 64 apartments which is also expected to be completed in 2018.
"Although our financial results for the first half of 2017 are less impressive than those which we reported a year ago, Aamal Company remains well-placed to take advantage of growth opportunities as they arise," Sheikh Mohamed bin Faisal Al Thani, Vice Chairman and Managing Director of Aamal.
"We continue to hold market-leading positions across our diverse range of businesses and our business model and financial position, including our healthy cash flow generation, remain strong. We look forward with confidence to the remainder of this year and beyond," he added.
The Peninsula
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