Aamal Company, one of the Gulf region’s fastest-growing diversified companies, has disclosed a net profit of QR96.5mn in the first three months of this year. The net profitability, however, showed a decelerating trend, due to the challenges associated with the industrial manufacturing segment and costs associated with financing investments. Net underlying profit margins have decreased by 2.6 percentage points to 24.9% at the end of March 31, 2019. The group revenues grew 4.4% year-on-year to QR321.7mn, following strong performance of Aamal’s trading and distribution segment.
There were no fair value gains on investment properties either in the first quarter of 2019 or in 2018.
“With revenues rising more than 4% in the first quarter of 2019, Aamal’s performance exemplifies the advantages and resilience which our diversified business model provides,” according to HE Sheikh Faisal bin Qassim al-Thani, chairman of Aamal. Temporary headwinds impacted performance in the industrial manufacturing segment but this was partly offset by the positive trading results generated by trading and distribution and property segments, he said, adding “we expect the performance of industrial manufacturing to progressively improve.” Asserting that Aamal is able to take advantage of the many opportunities presented by the strength of the Qatari economy, he said financing these investments led to an increase in funding costs, which impacted profitability”.
“The overall economic outlook is encouraging and we expect Aamal to continue to benefit from the opportunities generated by both the economy and the Qatar National Vision 2030. Furthermore, we are currently evaluating a number of exciting, midstream industrial projects; those which we decide to proceed with will be announced in due course,” Sheikh Faisal said. Sheikh Mohamed bin Faisal al-Thani, chief executive and managing director of Aamal, said that revenue expanded in three of its four segments.“Revenue in our industrial manufacturing segment was impacted by temporary delivery delays which are expected to progressively improve during the second quarter. Our trading and distribution segment undoubtedly delivered the most pleasing performance, despite intensified market competition, delivering year-on-year growth of 14% and 11% in revenue and net profit, respectively,” he said.
Sources and photo-credits: Gulf Times