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(The Group’s Comments) Mannai’s Net Profit Drops to QAR
87.4 Million for the First Half of 2019
August 07, 2019
Profits: decreased to QAR 87.4 million by the
end of the first half of this year, compared to QAR 167 million
for the same period last year, while earnings per share reached
QAR 0.19 versus QAR 0.37. This decline is due to the climb in
Financing Costs and Depreciation Expenses due to the application
of IAS 16, in addition to the increase in loans.
Comprehensive Income: Mannai
Corporation recorded a loss of QAR 13.9 million in the statement
of comprehensive income compared to a loss of QAR 50.3 million
for the first half of 2018.
Revenues: increased by 10% to reach QAR 5,700
million in the first half of the current year, compared to QAR
5,171 million for the same period of 2018. In contrast, Direct
Costs increased by 12.7%, and Gross Profit climbed to QAR
1,227.8 million, compared to QAR 1,202.9 million for the
corresponding period of 2018.
Financing Costs: As mentioned
above, Financing Costs rose significantly by QAR 75.3 million to
jump to QAR 205.1 million as the company often finances its
acquisitions through loans, which resulted in higher Financing
Costs. The implementation of accounting standard No. 16 had the
most impact on the climb of these costs, and on Depreciation and
Amortization Expenses, which rose by about QAR 90 million,
leading to the decline in profits.
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