(MENAFN- Gulf Times) Aamal Company has reported a net profit of QR266.6mn in the first six months of this year, mainly contributed by its property, industrial manufacturing and trading businesses.
Although the total net profit fell 13% year-on-year, the company's net underlying profit margins improved to 24.8% in the first half of 2017 against 19.5% the year-ago period.
'The first six months of 2017 saw a fall in revenue and profits compared to the first half of the previous year. 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, Aamal chairman Sheikh Faisal bin Qassim al-Thani said.
Of the QR266.6mn total net profit, much of which (QR127.1mn) came from property division; QR72.9mn from industrial manufacturing; QR59.6mn from trading and distribution; QR3.9mn from head office and QR3.1mn from managed services.
The company's total revenue stood at QR974.6mn in January-June this year with industrial manufacturing contributing QR477.3mn, followed by trading and distribution (QR308.9mn), property (QR153.6mn) and managed services (QR48.1mn).
Overall revenues and net profit of industrial manufacturing fell 43.4% and 37.7% respectively, although the net underlying profit margin increased marginally, an Aamal spokesman said.
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.
Moreover, some subsidiaries have seen increased market competition which has led them to offer competitively lower sales prices.
'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, Sheikh Faisal said.
Its trading and distribution division revenue fell 12.8% and profit by 12.6%, 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 were not repeated in the first half of 2017.
Although Aamal real estate saw a slight increase in net profit, its property division was impacted by the ongoing expansion and redevelopment of City Center 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, the spokesman said, adding during the period, Aamal real estate began the construction of a residential building containing 64 apartments expected to be completed in 2018.
Although the H1 2017 results are less impressive than it reported a year ago, Aamal Company vice chairman and managing director Sheikh Mohamed bin Faisal al-Thani said it remains well-placed to take advantage of growth opportunities as they arise.
'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, he added.
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