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(The Group’s Comment) Al Mannai
Group Net Profit Fall 50% to 202.57 Million in 2019
Net Profit: The net profits for the year
2019 decreased by 50.25% to record QAR 202.57 million compared to QAR
407.15 million for 2018. Earnings per share was QAR 0.44 compared to QAR
0.89 for the previous year 2018. Regarding the 4th quarter
2019 net profit, the company recorded QAR 122.7 million, compared to QAR
185.8 million for the equivalent quarter 2018.
Comprehensive income: The Company achieved
valuation loss in the statement of comprehensive income of about QAR
65.26 million compared to net losses of nearly QAR 108.44 million for
the year 2018.
Revenues: Revenues increased by
approximately 7.6% and (QAR 818 million) to reach QAR 1,1591.7 million
compared to QAR 1,0773.5 million for 2018. However, the cost of revenue
increased by QR 902 million (11%) which affected the overall profits
through a decrease of QAR 84 million. The percentage of the gross profit
(measures the gross profit margin) for the year 2019 was about 21.5%,
meaning that each riyal of the company's revenues generates a total
profit of about 21.5% compared to 24.0% for the year 2018.
Operating profits before interest, taxes,
depreciation and amortization (EBITDA): This indicator measures the
company's ability to generate revenue before the cost of financing,
depreciation and amortizations. It reached as at the end 2019 about QAR
1,081.37 million compared to QAR 1,005.85 million for 2018, an increase
of 7.50% as a result of reducing general and administrative expenses by
QAR 128.6 million as well as selling and distribution expenses of by
nearly QAR 43 million. This translates to the company’s ability to
generate revenue, but the financing costs and depreciations obviously
place pressure on profitability.
Financing and amortization costs: This item
is of great importance to the company as it funds most of the
acquisitions through bank loans. The period witnessed an increase in
financing costs by nearly QAR 87.0 million and depreciation and
amortization expenses increased by QAR 171.3 million. This increase is
caused by the implementation of te Accounting Standard No. 16 related to
lease contracts.