mannai corporation qpsc 3q'19 financial summary · 2019-10-31 · 2 mannai corporation...
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Mannai Corporation QPSC
3Q'19 Financial Summary
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Mannai Corporation Q.P.S.C. cautions investors that certain statements contained in this document state Mannai Corporation’s management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements.
Mannai Corporation management wishes to further caution the reader that forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to:
– Future sales growth
– Market acceptance of our product and service offerings
– Our ability to secure adequate financing or equity capital to fund our operations
– Our ability to enter into strategic alliances or transactions
– Regulatory approval processes
– Changes in technology
– Price competition
– Other market conditions and associated risks
This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in any company within Mannai Corporation.
The Mannai Corporation undertakes no obligation to update publicly or otherwise any forward-looking statements, whether as a result of future events, new information, or otherwise.
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Disclaimer
Financial Highlights
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3Q YTD’ 18 3Q YTD’19
Revenues 7,686m 8,525m 11%
Gross Profit % 24.0% 21.0% (3.0)pts
SG&A Expenses 1,303m 1,163m 11%
EBITDA 671m 759m 13%
Finance Cost 224m 311m (39)%
Net Profit 221m 81m (63)%
Capital Employed 8,811m 9,124m 4%
Earnings Per Share 0.49 0.18 (63)%
QAR m
Net Profit
QAR m
4
(63)%
• Growth in Information Technology segment of 7%, driven by organic order growth and acquisitions
• Jewellery loss of (50)m, down 49m, as UAE luxury segment continues to deteriorate
• Finance costs increase of 87m driven by higher borrowings for investment in IT segment
• Q3’18 benefited from gain on sale of investment of 81m
Profit Fall Due Higher Finance Costs and Jewellery Segment
221
81
3Q YTD'18 3Q YTD'19
7,686 8,525
3Q YTD'18 3Q YTD'19
Revenue 11%
Revenues Growth of 11% Driven by IT Segment Growth QAR m
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• IT segment growth of 18% driven by Realdolmen acquisition and strong organic growth in Qatar
• Jewellery revenues down 14% as UAE retail sector continues to slow
• Auto new vehicle sales up 10%, boosted by new pick-up release
• Qatar projects-based business units slow due to lack of new projects; Qatar revenues, excluding IT, fall by 9%
IT Segment Grows from 75% to 81% of Group Revenues Revenue Mix
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Auto 6%
IT 80%
Damas 10%
Other 4%
3Q YTD‘19 3Q YTD‘18
Auto 7%
IT 75%
Damas 13%
Other 5%
3Q YTD ‘19
Gfi Growth Bring Europe Share to 58% Revenue Mix
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Qatar 31%
Other GCC 13%
Europe 55%
Other 1%
Qatar 32%
Other GCC 10%
Europe 58%
Other 0%
3Q YTD ‘18
110
66
3Q YTD'18 3Q YTD'19
Other Income
(74)%
QAR m
8
• Gain on sale of IT investment of 81m recognised in Q3’18
Other Income Reduction Due to Significant Gain in Q3’18
Solid Revenue Growth Increase IT Segment Profit Mix to 81% EBIT Profit Mix*
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Auto 11%
IT 81%
Damas -4%
Axiom 2%
All Other 10% Auto 8%
IT 60% Damas 5%
Axiom -1%
All Other 28%
3Q YTD‘19 3Q YTD‘18
Debt QAR m
Debt Increase from Growth Investment in IT Segment Drives Increase in Finance Costs
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5,281
6,737 7,245 7,385
FY '17 FY '18 1H' 19 3Q YTD'19
• FY’18 Debt increase driven by increased stake in Gfi Informatique & Realdolmen acquisition
• YTD’19 increase driven by additional working capital for IT Segment in Qatar and Europe as a result of 18% increase in orders and revenues
Finance Cost
224
311
3Q YTD'18 3Q YTD'19
39%
QAR m
IFRS16 Impact on Key Income Statement Lines*
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G&A Expenses
(10)%
0.4%
906 817
93
906 910
3Q YTD'18 3Q YTD'19
IFRS 16
S&D Expenses
(12)%
(2)%
394 346
39
394 385
3Q YTD'18 3Q YTD'19
IFRS 16
EBITDA
+2%
+13%
590 602
81 157
671 759
3Q YTD'18 3Q YTD'19
IFRS 16
Depreciation & Amortisation
(7)%
+82%
160 148
142 160
290
3Q YTD'18 3Q YTD'19
IFRS 16
One-off gain
*Additional 24.6m reduction in Direct Costs, Increase of 17.7m in Finance Costs and overall Net Profit impact of (2.4)m
Rent Expenses transferred to Depreciation and Finance Costs
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Mannai Corporation QSC
Tel: +974-4455 8888 Fax: +974 4455 8880
www.mannai.com
CONTACTS
Investor Relations
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Ewan Cameron Chief Financial Officer
Abayazeed Ahmed
Investor Relations Officer email: [email protected]
Tel (Direct) : +974-44558844