(The Group’s Comments) The Net Loss of QGMD Rises to QAR 5.62 Million in the First Half of 2019

July 17, 2019

Losses: The results of Qatari German Medical Devices (QGMD) for the first half of 2019 show a net loss of QAR 5.62 million, compared to a loss of about QAR 4.40 million in the same period last year, an increase in the loss ratio of 27.7%. QGMD’s also recorded a loss per share of QAR 0.049 in this half, versus QAR 0.038 in the corresponding period of 2018. As for the second quarter, the company posted a loss of about QAR 2.6 million, compared to a loss of QAR 2.2 million in the same period of the previous year.

Revenues: fell by 9.8% due to a drop in sales of medical syringes, consumables and catheters sales. The company’s cost of sales to sales ratio reached 88% compared to 80% for the same period of 2018, which led to QAR 506,000 decrease in gross profit from QAR 887,000 in the first half of 2018.

Expenses: Despite the decline in sales, the company's expenses increased by 13% to reach QAR 7.35 million, compared to QAR 6.51 million, which deepened losses.

Accounts Receivable: The total balance before provision for impairment reached about QAR 9.80 million and its balance after provision amounted to about QAR 2.08 million, i.e. the balance of the provision reached QAR 7.7 million, in other words every one riyal the company provides as credit sales, the company cuts about 78 dirhams, which is a high percentage reflecting the inefficiency of collection and the failure of more than 75% of those receivables.

Accumulated Losses: amounted to QAR 122.4 million, representing 106% of the share capital. The book value of the share reached about QAR 0.31 while the ratio of liabilities to shareholders' equity stood at around 279%.