(The Group’s Comments) Al Meera Net Profit Falls 6% to QR 182.39 Million in 2018

Ø Profits: The Company made profits of QR 182.39 million by the end of 2018, a drop of 6% compared to QR 194.04 million in the previous year. Al Meera’s earnings per share amounted to QR 9.12, versus QR 9.70 in the corresponding period of 2017. The company’s decreased profits was due to the increase of its administrative and general expenses by QR25.5 million, in addition to increased consumption and amortization expenses. However, profits climbed by 6.5% in the fourth quarter of 2018, compared to the same period of 2017, recording QR 61.09 million, versus QR 57.34 million in the same period of 2017.

Ø Comprehensive income: The total comprehensive income at the end of 2018 amounted to about QR 202.81 million, as the company recorded profits from the valuation of its financial investments of about QR 20.34 million, noting that these investments recorded an assessment loss of about QR 30.80 million in 2017.

Ø Revenues: In 2018, revenues increased by 4.7% to QR 2,995 million, compared to QR 2,861 million in 2017. Also, the total profit (sales - cost) increased by 3.88% compared to the previous year. But despite the increase in revenues, expenses were higher, which led to a decline in 2018 profits.

Ø Assets: increased by 8.37% by the end of 2018, compared to the previous year due to an improvement in the company’s cash balances, which increased by QR 151.8 million or 43%. The improvement in the value of the company's investments contributed 12% to the increase in assets by the end of the year.

Ø Dividend distribution: The Board of Directors recommended a cash dividend of 85% (5.6% dividend yield) of the nominal value of the share, i.e. QR 8.50 per share, which is the same as the dividend distribution of 2017.

Ø Market ratios: The stock is currently traded at a PE multiple of 16.67 times and a book value multiple of 2.16 times.