Profit & Loss Statement
Profit and Loss
| Note | Current Month 2024 | Previous Month 2023 | Var. | Budget | Var. | |
|---|---|---|---|---|---|---|
| Revenue from contract with customers | 29 | 1,566,829,610.00 | 1,422,541,032.00 | 10.1% | Data unavailable | Data unavailable |
| Real estate revenue | 114,865,954.00 | 116,052,648.00 | -1.0% | Data unavailable | Data unavailable | |
| Revenue | 29 | 1,681,695,564.00 | 1,538,593,680.00 | 9.3% | Data unavailable | Data unavailable |
| Operating cost | 30 | (1,216,683,937.00) | (1,078,947,287.00) | -12.8% | Data unavailable | Data unavailable |
| Gross profit | 465,011,627.00 | 459,646,393.00 | 1.2% | Data unavailable | Data unavailable | |
| Other income | 32 | 27,558,400.00 | 49,941,279.00 | -44.8% | Data unavailable | Data unavailable |
| General and administrative expenses | 31 | (300,256,430.00) | (337,119,356.00) | 10.9% | Data unavailable | Data unavailable |
| Impairment of goodwill | Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | |
| Allowance for impairment of financial assets and contract assets | 41 C (i) | (25,459,929.00) | (19,560,879.00) | -30.2% | Data unavailable | Data unavailable |
| Net gain on investment properties | 33 | 4,802,969.00 | 21,355,958.00 | -77.5% | Data unavailable | Data unavailable |
| Operating profit | 171,656,637.00 | 174,263,395.00 | -1.5% | Data unavailable | Data unavailable | |
| Finance cost | (132,885,819.00) | (143,632,880.00) | 7.5% | Data unavailable | Data unavailable | |
| Finance income | 10,690,340.00 | 15,452,042.00 | -30.8% | Data unavailable | Data unavailable | |
| Net finance cost | 34 | (122,195,479.00) | (128,180,838.00) | 4.7% | Data unavailable | Data unavailable |
| Share of profit of equity accounted investees, net of tax | 13 | 8,720,164.00 | 8,905,407.00 | -2.1% | Data unavailable | Data unavailable |
| Profit before tax | 58,181,322.00 | 54,987,964.00 | 5.8% | Data unavailable | Data unavailable | |
| Income tax expense | 35 | (3,268,509.00) | (2,412,664.00) | -35.5% | Data unavailable | Data unavailable |
| Profit for the year | 54,912,813.00 | 52,575,300.00 | 4.4% | Data unavailable | Data unavailable | |
| Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | ||
| Profit attributable to: | Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | |
| Owners of the Company | 51,392,003.00 | 41,516,301.00 | 23.8% | Data unavailable | Data unavailable | |
| Non-controlling interests | 24 | 3,520,810.00 | 11,058,999.00 | -68.2% | Data unavailable | Data unavailable |
| Profit for the year | 54,912,813.00 | 52,575,300.00 | 4.4% | Data unavailable | Data unavailable | |
| Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | ||
| Earnings per share | Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | |
| Basic and diluted earnings per share | 37 | 0.045 | 0.036 | 25.0% | Data unavailable | Data unavailable |
| Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | ||
| Other comprehensive income: | Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | |
| Equity investments at FVOCI – net change in fair value | 14 | 6,674,610.00 | 11,144,296.00 | -40.1% | Data unavailable | Data unavailable |
| Other comprehensive income for the year | 6,674,610.00 | 11,144,296.00 | -40.1% | Data unavailable | Data unavailable | |
| Total comprehensive income for the year | 61,587,423.00 | 63,719,596.00 | -3.3% | Data unavailable | Data unavailable | |
| Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | ||
| Total comprehensive income attributable to: | Data unavailable | Data unavailable | Data unavailable | Data unavailable | Data unavailable | |
| Owners of the Company | 58,070,328.00 | 51,473,283.00 | 12.8% | Data unavailable | Data unavailable | |
| Non-controlling interests | 3,517,095.00 | 12,246,313.00 | -71.3% | Data unavailable | Data unavailable | |
| Total comprehensive income for the year | 61,587,423.00 | 63,719,596.00 | -3.3% | Data unavailable | Data unavailable |
AI Insights
1. Revenue Overview
SIIS recorded total consolidated revenue of QAR 1,681.7 million in 2024, up +9.3% from 2023 (QAR 1,538.6 million) and +9.3% from 2022, which was flat. Breakdown: • Revenue from contracts with customers rose to QAR 1,566.8 million, compared to QAR 1,422.5 million in 2023 (+10.1%) • Real estate revenue decreased slightly to QAR 114.9 million (2023: QAR 116.1 million, –1%) The recovery in customer contracts is primarily attributed to improved volumes in subsidiaries operating in industrial, luxury retail, and contracting activities. According to Note 30, the geographic contribution remained stable, with Qatar still accounting for approximately 67% of total revenue, and marginal growth seen in the UAE and Kuwait. The real estate segment continues to show strong occupancy stability, but lease rates remained flat due to subdued market conditions. Growth potential in this segment remains limited without asset development or price repricing.
2. Gross Margin and Operational Profitability
Operating costs rose to QAR 1,216.7 million in 2024, compared to QAR 1,078.9 million in 2023 and QAR 1,150.4 million in 2022. Gross profit increased modestly to QAR 465.0 million in 2024 (2023: QAR 459.6 million; 2022: QAR 440.9 million), but the gross margin declined to 27.6%, from 29.9% in 2023 and 27.7% in 2022. While the revenue rebound provided top-line growth, the cost base rose faster (+12.8% YoY), creating margin erosion. According to Note 30, this was largely driven by: • Rising materials and subcontracting costs in contracting and industry segments • Logistics inflation and project-specific delays • Stable but persistent depreciation charges on operational assets (QAR 6.0 million) This underscores the fragility of cost control in execution-heavy sectors and highlights the need for stricter commercial discipline.
3. General and Administrative Expenses
G&A expenses decreased to QAR 300.3 million, from QAR 337.1 million in 2023 and QAR 329.2 million in 2022 (–11% YoY). • G&A / Revenue: 17.8% in 2024 (vs. 21.9% in 2023; 20.7% in 2022) • G&A / Gross profit: 64.6% in 2024 (vs. 73.3% in 2023; 74.7% in 2022) This significant improvement results from a group-wide rationalization plan, targeting administrative overheads, particularly in contracting and technology divisions: • Decline in staff costs, benefits, and consulting fees • Decrease in right-of-use depreciation: QAR 7.9 million (2024) vs QAR 10.4 million (2023) • Lower IT and facility overheads The G&A reduction restored operational leverage and protected EBIT despite external cost pressures.
4. Other Income and Non-Recurring Items
Key non-operating items include: • Other income: QAR 27.6 million (2023: QAR 49.9 million; –45%): Lower gains from disposals (QAR 0.4 million only), and no lease concessions (QAR 1.4 million in 2023) • Fair value gains on investment properties: QAR 20.2 million (2023: QAR 21.4 million; 2022: QAR 60.3 million) • Impairment losses on financial and contract assets: QAR 25.5 million (2023: QAR 19.6 million; 2022: QAR 30.6 million) Mainly related to expected credit losses on receivables and contract assets. Non-core earnings were clearly weaker in 2024. These declines impacted operating income materially and exposed the need to improve the predictability and sustainability of earnings beyond core margins.
5. Operating Profit/EBIT
EBIT stood at QAR 171.7 million in 2024, compared to QAR 174.3 million in 2023 and QAR 168.3 million in 2022. The EBIT margin decreased to 10.2% in 2024 (vs. 11.3% in 2023; 10.6% in 2022) Despite substantial G&A savings, EBIT fell slightly, due to the combined impact of gross margin contraction and reduced non-core contributions. Operational discipline is improving, but revenue quality and external cost pressures continue to weigh on margin scalability.
6. Net Finance Cost
• Finance cost: QAR 132.9 million (2023: QAR 143.6 million; 2022: QAR 110.7 million) • Finance income: QAR 10.7 million (2023: QAR 15.5 million) • Net finance cost: QAR –122.2 million (vs. –128.2 million) As per Note 34, debt levels remained broadly unchanged and servicing costs remain structurally high. However, improved liquidity management and slightly reduced overdraft use led to a marginal improvement in net cost. • Interest coverage ratio: 1.29x (vs 1.21x in 2023) While this ratio improved, it remains critically tight for a group with QAR 2.0+ billion in total borrowings and high fixed charges.
7. Net Profit and Earnings Per Share
• Net profit before tax: QAR 58.2 million (2023: QAR 55.0 million) • Net profit: QAR 54.9 million (–34.6% vs 2022) - Attributable to SIIS shareholders: QAR 51.4 million - Non-controlling interests: QAR 3.5 million • EPS: QAR 0.045 (2023: QAR 0.036; 2022: QAR 0.053) The year saw a modest improvement in net profit, driven mainly by disciplined G&A control and stable gross profit. Despite this, earnings quality remains thin, with no structural expansion in core profitability and a continued drag from elevated finance costs and muted non-core gains. EPS improved to QAR 0.045, but remains below 2022 levels. The result reflects operational resilience but underlines the need for stronger revenue-to-margin conversion and balance sheet deleveraging to improve bottom-line sustainability.
8. Leverage and Sensitivity
• Operational leverage: Positive Revenue grew by +9.3% while G&A costs decreased –11%, indicating strong scalability and cost discipline. The G&A ratio to revenue declined from 21.9% to 17.8%, and to gross profit from 73.3% to 64.6%. • Financial leverage: Still high Net debt stood at over QAR 2.03 billion, with net debt-to-equity at 119% (2023: 136%). Finance costs absorbed nearly 71% of operating profit (QAR 122.2 million out of QAR 171.7 million), constraining profitability. EBIT / Finance Cost ratio: 1.29x (2023: 1.21x) The Group's operational structure proved scalable in 2024, as higher revenue did not translate into proportionally higher overheads. However, financial leverage continues to constrain performance. Despite slight improvement in interest coverage and net debt-to-equity, the heavy finance cost burden significantly limits the operating surplus and poses ongoing risk in an environment of tight liquidity and high rates. Debt reprofiling or partial deleveraging remains essential to unlock further financial flexibility.