(The Group's Comments) Industries Qatar Net Profit Drops to QR 674 Million in Q1 2019

 

April 22, 2019

 

·         Profits: Industries Qatar’s profits decreased by 47% or about QR 594 million to QR 674 million in the first quarter of 2019, compared to QR 1,267.9 million for the first quarter of 2018, while the company’s earnings per share amounted to QR 1.11 in the period ended 31/3/2019, versus QR 2.10 for the corresponding period of 2018.

 

·         Revenues: Total revenues for the period ended 31/3/2019 amounted to QR 1,261.9 million compared to QR 1,377.8 million for the first quarter of 2018, a decrease of 8.4% or approximately QR 116 million.

 

·         Cost of Sales: Despite the decline in revenues, costs rose by 16%, an increase of about QR163.7 million, which had a negative impact on profit margins. The gross profit (revenues – cost of sales) amounted to QR 49.6 million in the first quarter of 2019, compared to QR329.2 million in the first quarter of the previous year, a decrease of QR 279.6 million or 85%. Gross profit margin (Gross profit to income ratio was 3.93%, compared to 23.9% for the corresponding period of 2018).

 

·         The company's share in the results of joint ventures and associates: Industries Qatar’s profits from this item decreased by the end of the first quarter of this year to reach QR 553.6 million, compared to QR 879.7 million for the same period of 2018, a decline of QR 326.1 million or 38%, which had a negative impact on the profits of the period.

 

·         Comprehensive Income: The company recorded a cash flow hedge valuation loss of QR2.56 million in the first quarter of 2019, versus a profit of QR 1.81 million for the same period of 2018.