Higher revenue and share of profits from associates helped Aamal Company report a 17% jump in net profit to QR325.93mn in the first nine months of this year.
Revenue grew 29% to QR2.07bn but direct costs rose faster at 31% to QR1.61bn, yet translating into a 23% jump in gross profit to QR461.45mn, according to its financial statement filed with the Qatar Stock Exchange.
“The principal source of this growth has been from our industrial manufacturing division, which saw an increase in sales in excess of 50%,” Aamal Company chairman Sheikh Faisal bin Qassim al-Thani said.
By retaining strong market positions in property as well as trading and distribution divisions, Aamal offers balanced and high quality exposure to the wider Qatari economy as it continues to diversify away from being hydrocarbon dependent, he added.
“Our revenues have grown significantly, as we have consolidated and built on our market leadership positions, yet this has not been at the expense of profitability, as margins have expanded too,” Aamal Company vice chairman Sheikh Mohamed bin Faisal al-Thani said.
Net underlying profit margins (before fair value gains on investment properties and the share of profits from equity accounted for investments) saw a further strengthening to 16.4% against 15.3% in the year-ago period.
Aamal managing director Tarek M El Sayed attributed the continued success to its focus on operational excellence and innovation across its existing market leading businesses as part of its strategic growth initiatives.
Other income soared 66% to QR11.27mn and share of profits of equity-accounted investees by 44% to QR27.09mn.
Although general and administrative expenses shot up 8% to QR96.03mn; Aamal’s marketing and promotion costs fell 25% to QR12.98mn and finance costs by 20% to QR18.75mn.
The company booked QR108.4mn as capital expenditure compared to QR84.2mn in the corresponding period of 2014.
Total assets were valued at QR9.39bn, comprising current assets of QR1.92bn and non-current assets of QR7.47bn.
Total equity stood at QR7.45bn on a capital base of QR6.3bn and earnings--per-share was QR0.52 at the end of September 30, 2015.