(The Group’s Comments) Zad Holding's Net Profit Rises to QAR 115.05 Million for the First Half of 2019

August 07, 2019

Profits: Zad Holding Group’s net profit amounted to about QAR 115.05 million for the first half of the 2019, compared with QAR 114.75 million for the first half of last year, while its earnings per share reached QAR 0.49 versus QAR 0.49 riyals for the corresponding period of 2018. As for the second quarter, the holding posted a net profit of QAR 65 million, similar to the second quarter of last year.

Revenues without government support: the company generates revenues through several activities such as wheat import and the manufacturing of several flour products, like pasta and baked goods, in addition to construction, contracting activities, and management of industrial projects, as well as real estate activities. Zad’s total operating income amounted to QAR 693.2 million in the first half of 2019, compared to QAR 554.8 for the same period of 2018, an increase of 25%, as revenues for the sale of goods and services climbed by 35%, and contracting revenues increased by QAR 69 million, while building materials revenues dropped by about QAR 79 million.

Gross Profit: the climb in operating income with the increase in costs had a positive impact on the gross profit, which improved from QAR 141.4 million in the first half of 2018 to QAR 166.8 million for this year’s first half. As for Other Income, the company posted a decreased by about QAR 16.4 million as a result of a QAR 40 million non-recurring profit in 2018 due to the exclusion of some of its assets.

The revenues of the first half of 2019 included QAR 16.50 million, a provision for doubtful debt, which has been restored to income, impacting the profit for the period.