Chairman of Aamal Sheikh Faisal bin Qassim Al Thani
Doha: Aamal Company (Aamal), one of the Gulf region’s leading diversified companies, yesterday reported a net profit of QR131.1m for the first half of the year (H1 2021), a significant increase of 566 percent compared to QR19.7m during the same period last year (H1 2020).
The company, which announced its financial results for the six months ended June 30, 2021, witnessed a strong recovery in revenue and earnings growth as all business segments were restored to profitability.
Total revenue increased by 12.1 percent to QR710.7m compared to QR634m in H1 2020, while Gross profit was up 24.3 percent to QR192.4m from QR154.8m during the same period last year.
Reported earnings per share rose to QR0.021 from QR0.003. And net capital expenditure increased to QR40.9m from QR25.5m. Gearing remains low at 4.8 percent.
Chairman of Aamal, Sheikh Faisal bin Qassim Al Thani, said: “Aamal performed strongly over the first half year, translating improved top-line revenues into net profit and earnings per share growth. This performance reflects the resilience of Aamal’s diversified business strategy and our focus on operational efficiency, production base optimisation and financial discipline as we navigated through the pandemic to date. As a result we have restored all business segments to profitability in the half year and increased capital investment while maintaining a strong balance sheet and low gearing. Aamal is therefore well positioned, both to weather any future impacts of the pandemic and to benefit from the continued recovery of the wider economy”.
He added that all segments performed well and Industrial Manufacturing, Property and Managed Services each delivered year-on-year revenue, profit and margin improvement as restrictions eased, enabling infrastructure project order flows and retail and other business operations to start to normalise.
“Looking ahead, Aamal is in excellent shape, with the right strategy, market diversification, operational efficiency and financial strength and resilience to continue to deliver growth and value for all stakeholders while contributing to the continuing development of the Qatar economy. We look forward to the second half of the year with confidence,” added Sheikh Faisal.
The Industrial Manufacturing segment performed well in the first half of 2021 with revenue increasing 79 percent to QR173m and net profit up 28.2 percent to QR24.4m. New contract wins contributed to revenue growth at Aamal Readymix and Aamal Cement of 6.1 percent and 27.5 percent year-on-year respectively. All business units benefitted from the trend towards normalisation in demand levels related to infrastructure projects.
Advanced Pipes and Casts continued to convert its healthy order backlog and production of the new Glass Reinforced Pipe product is expected to start during the last quarter of 2021. Ci San’s subsidiary, Aamal Maritime Services benefited from sharply increased demand for maritime shipping services in the second quarter.
In the Trading and Distribution segment, Ebn Sina introduced a new warehouse delivery system, “Digisal”, to automate the warehouse supply process by digitalising the receipt of orders at the warehouse, processing and delivery to customers. It also received two robots for its warehouse for installation in the third quarter of 2021. The construction of Ebn Sina’s new warehouse at Manateq is underway and this is expected to be operational during the second quarter of 2022.
Chief Executive Officer and Managing Director of Aamal Sheikh Mohamed bin Faisal Al Thani
Aamal Trading & Distribution’s automative businesses including Bridgestone Tyres performed well in the second quarter, delivering enhanced revenue growth and profitability as it benefitted from increased operational hours as restrictions started to ease. Further progress is expected in the second half as restrictions continue easing, through enhanced sales and marketing activities and greater availability of stock to meet customer demand.
Property segment revenue increased 59.9 percent year-on-year (Y-o-Y) to QR120.4m, while net profit rose 458.6 percent to QR93.3m, reflecting the ongoing normalising of rental revenues in the first half and the elimination of negative fair value adjustments made in H1 2020 at the height of the pandemic restrictions.
A growing number of new retail outlets opened at City Center Doha over the course of the first half year. Work continues with the development of the City Center frontage which will see the launch of new outdoor cafes and restaurants, as well as landscaping and work on two bridges connecting the mall to the metro station and the central business district, all initiatives which will further improve the customer experience at City Center.
The first half of 2021 saw a gradual return to normal for parts of the Managed Services segment. Revenue was up 8.5 percent Y-o-Y to QR27.3m. Despite the continued challenges facing businesses within this segment, Aamal Services benefitted from increasing demand as restrictions eased over the period. Aamal Travel’s performance also improved following the easing of restrictions relating to the global travel industry.
Although Winter Wonderland and Fun City remained closed for the majority of the period, Fun City reopened during June 2021 following the easing of COVID-19 restrictions.
Chief Executive Officer and Managing Director of Aamal, Sheikh Mohamed bin Faisal Al Thani, said: “Our half year performance represents an inflection point for Aamal. The initiatives undertaken to navigate the pandemic and target growth and operational efficiency have restored the profitability of all business segments and delivered good revenue and profit growth. This performance also demonstrates the strength of our diversified business strategy with significant contributions made by all subsidiaries, ranging from the opening of new stores at City Center Doha, the impressive performances of Aamal Maritime Transportation Services and the new contract wins by Aamal Readymix and Aamal Cement Industries to Ebn Sina’s and Aamal Medical’s continuing strong results against moderating demand as the pandemic recedes, and the agility of our Managed Services subsidiaries to meet increasing demand as the restrictions which had so affected their services have started to ease”.
He added: “This outcome is down to our successful business strategy, strong financial position and discipline, commitment to the highest standards of governance, our outstanding management team, and the dedication of all our employees who have worked so tirelessly to overcome the challenges of the pandemic. The momentum of our performance in the first six months has carried into the start of the second half year and we look forward to the remainder of 2021 with confidence as we continue to meet the growing demand for our high-quality products, bring new and innovative products and services to the market and explore new opportunities for incremental growth and value creation.”
The company will have a conference call to discuss the financial results today at 14:00 Doha time. Conference Link is https://us06web.zoom.us/j/88138849567 with the Conference ID 881 3884 9567.
