Aamal’s total revenue rises to QR1.29bn

DOHA:  Aamal Company (Aamal), one of the Gulf region’s leading diversified companies, has reported total revenue of QR1.29bn for the year 2019, up 0.6 percent compared to the previous year. The solid performance in revenue generation was powered by the Trading and Distribution segment. Aamal’s Gross profit was down 7.1 percent to QR 434.0m.

The net underlying profit fell 25.2 percent to QR259.9m and the Share of net profits from associates and joint ventures accounted for using the equity method decreased 37.8 percent to QR 62.3m.

Revenue in the Trading and Distribution segment increased significantly, up 14.8 percent year-on-year to QR800m, while net profit declined 21.1 percent year-on-year to QR99m partly due to strong price competition in the market.

Profit at Aamal Travel was up 25 percent year-on-year in 2019, as the company established new connections with several football-playing South American countries, with profit margins up 7 percentage points.

Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, commented: “Although 2019 saw significant market headwinds in the construction industry, our diverse business model continued to prove highly resilient and Aamal responded positively in this challenging environment.

Sheikh Fiasal said he is particularly pleased by the progress made by the Trading and Distribution segment, which achieved robust top line growth in the year, and by the significant progress made in regards to the renovation works at City Center Doha, which increases the leasable area of the mall and is expected to drive increased occupancy. Aamal Real Estate also increased its occupancy levels through a number of major corporate agreements which, coupled with the renovation of City Center Doha, is expected to improve the overall performance of the Property segment.

“I am confident that we can continue to turn challenges into opportunities as we further build our business across all segments. We enjoy a strong market position across all the areas in which we operate, supported by a solid financial position and highly capable people across the business”, Sheikh Fiasal said.

He noted 2019 marked a year of significant development in terms of how we embed environmental, social and governance considerations in the way Aamal does business to achieve sustainable growth. In addition to further strengthening Aamal’s Board and Executive Team through new appointments, it developed a governance code to ensure Aamal is aligned with the highest levels of corporate standards and policies.

Sheikh Faisal said the year 2020 will see the benefits of several strategic initiatives come to fruition including the conclusion of the renovation works at City Center Doha. Furthermore, Aamal is currently evaluating a number of exciting, strategic midstream industrial projects and look forward to announcing in due course those we decide to progress.

“For Aamal, the outlook for 2020 is positive. The long-term economic outlook is encouraging and we expect to continue to benefit from the opportunities generated by both the economy and the Qatar National Vision 2030. We remain committed to financial and operational enhancements, as reflected in Aamal’s strong track record of sustainable growth over the past decade, both organically and through new business partnerships. Our corporate strategy remains clear and consistent as we continue to focus on generating shareholder value through profitable growth and diversification,” Sheikh Faisal said.

Despite lower profitability, 2019 was undoubtedly a positive year from an operational perspective and the Industrial Manufacturing segment businesses successfully progressed several strategic investments from which we expect to reap the benefits in 2020. Doha Cables successfully increased its production of high voltage cables, broadened its product range through the launch of new fire alarm cables, received product approval from recognised third parties including KEMA and Bureau Veritas for different types of high, medium and low voltage cables, and successfully expanded its export activity to new markets in the Philippines and Hong Kong. In 2020, Doha Cables will continue to target infrastructure projects related to energy and transportation services and will explore new markets in Asia and Eastern Europe.

Aamal Cement Industries (ACI) successfully replaced 3,500 HESS steel block pallets which has improved the manufacturing process and increased production capacity of interlocking pavestones by 13 percent, concrete blocks by 9 percent, curbstones by 7 percent and precast products by 5 percent. In 2020, ACI will further enhance its existing product portfolio.

2019 was a year of strong performance for Ebn Sina Medical which reported 26 percent year-on-year revenue growth. Ebn Sina Medical established several strategic partnerships with suppliers, enabling the company to diversify its product offering for generic, branded and biosimilar drugs.

2020 presents many opportunities for Aamal Medical, supported by a strong pipeline of promising projects. Aamal Medical will continue to explore the introduction to Qatar of the latest healthcare technologies such as Artificial Intelligence (AI), stem cell therapy, mobile health and telemedicine.

Sheikh Mohamed bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal, said: “Aamal’s performance in 2019 continued to be challenged by changing market dynamics. Increased market competition and customer price sensitivity impacted business operations and reduced profit margins. However, despite this backdrop, I am proud that Aamal remained competitive, delivered a small growth in revenues, won new contracts, introduced new products and services, and enhanced the performance of our real estate portfolio.”

Sheikh Mohamed added: “In 2020, we will also progress internal projects such as the digital transformation of Aamal and undertake a detailed review of our supply chain to ensure we are only partnering with suppliers who are fully aligned to our sustainability principles. We also plan to invest in high-calibre employees to ensure we are suitably resourced to remain competitive and deliver value to all our stakeholders.”