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(The Group’s Comment) Investment
Holding Group 2019 Net Profit Declines 5.64% to QAR 55.07 Million
Net Profit:
The Company’s net profit for 2019 recorded QAR 55.07
million, compared to QAR 58.36 million for 2018, a decline of 5.64%.
Earnings per share for the year amounted QAR 0.066 versus QAR 0.070 for
the previous year 2018. The 4th Quarter’s 2019 net profit
recorded QAR 26.8 million against QAR 20.6 million for the equivalent
quarter 2018.
Revenue: Despite the increase in the revenue by QAR 17.2 million in 2019 which
recorded QAR 443.52 million compared to the former year, total income
(revenue – cost of revenue) has declined by QAR 17.0 million reaching
QAR 107.9 million against QAR 134.9 million for 2018. The decline is
ascribed to the increase in operational costs beyond revenues due to the
increased price of the raw material.
Costs:
Notwithstanding the growth in revenues, costs has increased by
11% (near QAR 34.2 million) which caused a decline in the total income
and eventually impacted the net profit. The increase in the direct costs
came as a result of the increased raw material and direct wages.
Other revenues: This item included 2018 results,
non-operating profits resulted from reassessment of financial assets of
non-listed shares by nearly QAR 28.8 million. This profit has not
repeated within 2019 financial data. However, the 2019 financials
included non-operating profit of valuation of real estate investments by
QAR 7.15 million.
General & Administrative Expenses: This item was reduced by QAR 30.7
million in 2019 to QAR 68.0 million, a 31% compared to QAR 98.7 million
in 2018 attributed to the reduction took place in provisions and
salaries.
Comprehensive Income: The Company recorded evaluation profit of QAR 14.6 million in 2019
though the former year did not include any valuation transactions.
Dividends Distribution and Market
Ratios: The Board of Directors recommended
to retain the year’s profit to next year and not to distribute
dividends. The share is traded on 6.7 times profit multiplier (P/E) and
a book value multiplier of 0.41 times.
It is worth noting that the company’s
financial statements included a ‘goodwill’ items estimated at QAR 711
million equal to 50% of the company’s assets.