(MENAFN- The Peninsula) The Peninsula
DOHA: Aamal Company, one of the Gulf region's fastest growing diversified companies, recorded a total revenue of QR1.6bn for the year ended December 31, 2017, a decline of 43.3 percent from a year ago.
The year-on-year fall in revenue is primarily due to the reclassification of two business entities within the Industrial Manufacturing division from subsidiaries to joint ventures, with a consequent change in their accounting presentation, the company said in a statement yesterday.
Gross profit down 20.2 percent to QR545.6m. Net profit before share of net profits of associates and joint ventures accounted for using the equity method and fair value gains on investment properties ('net underlying profit) down 15.7 percent to QR421m.
Aamal's net underlying profit margins have increased by 8.7 percentage points to 26.3 percent. Share of net profits from associates and joint ventures accounted for using the equity method increased 69.4 percent to QR102m. There were no fair value gains on investment properties during 2017.
Total Company net profit was down by 6.6 percent to QR523.1m, with net profit attributable to Aamal equity holders up 8.4 percent to QR500.9m. Reported earnings per share increased9.6 percent to QR0.80. Net capital expenditure was down 16.8 percent to QR 106.5m.
Commenting on the financial results Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal Company said: 'While the continuing blockade by a number of neighbouring Gulf countries has undoubtedly created some challenging headwinds, I am very proud to say that Qatar as a nation is successfully navigating through them. I believe this is testimony not only to the resilience of the Qatari economy but also to the strong and clear leadership that our national government provides as we strive to achieve the holistic goals set out in the Qatar National Vision, including diversification of the economy.
'I must also mention the resourcefulness of the Qatari people in meeting these challenges head on, as they did in previously demanding times including the global slump post-2007 and the oil price lows of early 2016, he said.
'It gives me very great pleasure also to report that Aamal has been at the forefront here, managing to grow its earnings per share by almost 10 percent over the year with annual net profits attributable to Aamal shareholders now exceeding QR500m, which in the current climate is a very impressive result indeed.
'I am looking forward to reporting sustained growth, along with improvements in our operational performance, as we continue to seek attractive opportunities. I am also pleased to announce that Board of Directors has recommended a cash dividend QR0.60 a share, subject to the approval at the Annual General Assembly Meeting which is due to take place on April 22, 2018.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal said: 'Aamal has performed very well in an environment that can only be described as challenging. To manage to grow earnings by 9.6 percent bears witness not only to the resilience of our business model in withstanding these challenges but also to our ability to seek out opportunities, allied with the financial resources required to act on them decisively should potential value be identified.....I look forward with much confidence as Aamal goes from strength to strength.
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