Business / Qatar Business

Aamal posts 37% surge in revenue, 20.8% rise in net profit for H1

Published: 28 Jul 2022 - 10:49 am | Last Updated: 28 Jul 2022 - 11:11 am
FROM LEFT: Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, Sheikh Mohamed bin Qassim al Thani, Managing Director of Aamal and Rashid Al Mansoori, Chief Executive Officer of Aama

FROM LEFT: Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, Sheikh Mohamed bin Qassim al Thani, Managing Director of Aamal and Rashid Al Mansoori, Chief Executive Officer of Aama

The Peninsula

Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the region’s leading diversified companies, yesterday announced its financial results for the six months ended 30 June 2022.  Total revenue increased 37.1 percent to QR974.4m (H1 2021: QR710.7m), with particularly strong performances by the Industrial Manufacturing, Managed Services and Trading and Distribution segments

Gross profit was up 19.3 percent to QR229.7m (H1 2021: QR192.4m). There were no fair value gains on investment properties in either H1 2022 or H1 2021. Net profit attributable to Aamal equity holders up 20.8 percent to QR156.4m (H1 2021: QR129.5m)
Reported earnings per share was up 20.8 percent to QR0.025 (H1 2021: QR0.021). Net capital expenditure decreased by QR13.5m to QR27.4m (H1 2021 QR40.9m) and Gearing decreased to 4.1 percent (H1 2021: 4.8 percent). 

Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, commented: “I am very pleased to report that Aamal has continued its excellent start to the year, with all four segments delivering significant top-line growth. With revenue growth of 37 percent and net profit growth of 21 percent year-on-year, these are a very strong set of financial results.” 

“Our Industrial Manufacturing, Managed Services and Trading and Distribution segments all performed particularly well.  Managed Services benefited from the lifting of COVID-19 restrictions and the return of travel, while Aamal Maritime performed especially well within our Industrial Manufacturing segment.  Ebn Sina and Aamal Medical continued their strong performance within our Trading and Distribution segment, and our Property segment benefited from the high occupancy rates at Aamal Real Estate and City Centre Doha.” 

“In June we were delighted to welcome Rashid Al Mansoori as our new Chief Executive Officer.  He brings with him a wealth of experience which will add considerable value as we continue to deliver our strategic objectives.  Transparently separating the roles of CEO and Managing Director is fully in line with Aamal’s ongoing commitment to maintaining the highest standards of corporate governance.”

“The Qatar National Vision 2030 will be a significant driver of the economy and of our country’s development over the next few years and Aamal’s diversified business platform and strong financial position make us well placed to benefit from the many opportunities it will generate.  We remain committed to generating long-term shareholder value and look forward to the remainder of 2022 and beyond with considerable optimism and confidence.”  

The Industrial Manufacturing segment performed well in the first half with revenue increasing 69.1 percent to QR292.5m and net profit up 14.4 percent to QR28.0m.
Aamal Maritime Transportation Services (AMTS) saw sustained high demand and increased global shipping rates across both local and international markets. The recent overhaul of its vessels means AMTS can keep them in regular use, serving customers around the world.   Aamal Cement Industries has introduced a number of new products and has been working to improve efficiencies across its operations. 

The ongoing price war in the Readymix industry impacted margins at Aamal Readymix (ARM).  The need to complete ongoing construction work before the World Cup means that the outlook for ARM through to November is positive, with a gradual reduction in demand expected at the end of the year. 
The outlook for 2023 and beyond is positive as new projects are commissioned in relation to new cities being developed, the North Field expansion project progresses, and ports and transportation networks are expanded, amongst other projects.  

The Trading and Distribution segment saw revenue increase 26 percent to QR516.2m and net profit up 10.8 percent to QR50.8m.
Ebn Sina Medical continued to perform positively, signing distribution agreements with both a global vaccines manufacturer and a regional pharma manufacturer to expand their product range.  Ebn Sina Pharmacies is in the process of opening a new store in City Center Mall, expected to open in October 2022. 
Aamal Trading and Distribution’s automotive businesses continued to perform well.   A new tyre brand, ‘Fulva’, was added to the tyre division, further expanding the product offering.

Property segment revenue increased 17.9 percent year-on-year to QR141.9m, while net profit rose 23.6 percent to QR115.3m reflecting the increased occupancy levels at both Aamal Real Estate and City Center Doha.

City Center Doha saw 11 new store openings during the period, alongside the opening of Padel Club to expand the sports and leisure offering in the Mall.  Popular new restaurants have opened in the food courts and work is underway to open new outdoor restaurants, all of which will continue to attract visitors.
The lifting of COVID-19 restrictions and the return of travel has had a positive impact on the Managed Services division.  Revenue increased by 82.9 percent to QR49.9m and profit increased by 647.1 percent to QR5.3m.

At Aamal Services, contracts linked with the FIFA World Cup are now reaching peak capacity and will see the business almost double in size during 2022.  Looking ahead, Aamal Services has also secured new contracts and is focused on diversifying its client base and securing more contracts to mitigate volatile market conditions.  

Sheikh Mohamed bin Qassim al Thani, Managing Director, commented: “Aamal’s diversified business model, robust financials and clear strategy for growth continue to deliver a strong performance for all our shareholders.

“This is an exciting time for Qatar, with the economy expected to be the fastest growing in the GCC in both 2023 and 2024 according to the World Bank.  I strongly believe that Aamal’s market-leading position and exposure to Qatar’s growth story position us favourably to benefit from the opportunities that we will see in the next few years.  I am looking forward to this exciting next phase of Aamal’s growth story.”
Rashid Al Mansoori, Chief Executive Officer, commented: “I am delighted to have joined Aamal’s leadership team. The Company’s performance in the first half of 2022 was particularly impressive and I look forward to working with my new colleagues to build on this success as we continue to expand our operations and explore new opportunities to deliver shareholder value.

“The upcoming FIFA World Cup is an important milestone that will provide a further economic boost to Qatar, showcasing to regional and international investors our country’s exceptional capabilities, modern infrastructure, economic diversity, stability and safety.  Moving forward, in line with our diversified business model we have identified several new opportunities across infrastructure, natural resources, healthcare and technology.  We will also continue to build on Aamal’s ESG initiatives, identifying new ways to deliver value to our communities and further embed our sustainable business practices.”