Dubai Investments profit declines despite gains last year
Company increased its shareholding in Globalpharma to take full ownership of the pharmaceuticals firm in February
Dubai Investments, a diversified company in which sovereign wealth fund Investment Corporation of Dubai has a stake, reported a 79 per cent drop in net profit for the first three months of 2019, despite gains from acquisitions during the year-earlier period.
Net profit attributable to the owners of the company fell to Dh202 million, Dubai Investments said in a filing to the Dubai Financial Market, where its shares are traded, on Sunday.
Profit for the first quarter of 2018 included a gain of Dh333m attributed to the acquisition of a stake in Emirates District Cooling (Emicool) last January, the filing said.
In the latest quarter, Dubai Investments increased its shareholding in Globalpharma, to take full ownership of the pharmaceuticals company in February from its previous 34 per cent minority stake.
“Excluding these one-off items, the net profit for Q1, 2019 has increased by Dh118m,” said Khalid bin Kalban, managing director and chief executive of Dubai Investments.
“This is mainly due to increase in gain on fair valuation of investments, which is quite encouraging as it indicates improving market conditions.”
Total assets increased to Dh20.11 billion in the first quarter, compared to Dh19.55bn as at December 31, 2018, while annualised return on equity achieved for the reporting period was 6.4 per cent, according to the stock market filing.
“The company’s outlook for the remaining of 2019 is positive with various real estate developments nearing completion and the expected recovery of the manufacturing and contracting segment, which will further be boosted by acquisition of Globalpharma,” Mr Kalban added.
Globalpharma, which is based in Dubai Investments Park, manufactures and markets pharmaceutical products in more than 14 countries across the GCC, Middle East and neighbouring markets.
Dubai Investments' healthcare portfolio also includes stakes in KCH Healthcare, Clemenceau Medical Centre, tie-ups with hospital operators such as NMC in Dubai Investments Park and Mirdif Hills.
Updated: May 5, 2019 04:48 PM