Chairman of Aamal, Sheikh Faisal Bin Qassim Al Thani (left), and Chief Executive Officer and Managing Director of Aamal, Sheikh Mohamed bin Faisal Al Thani
Doha: Aamal Company (Aamal), one of the Gulf region’s leading diversified companies, has reported a total revenue of QR1.30bn for the year 2020, up 1 percent from QR1.29bn in 2019. The solid performance in revenue generation was powered by the Industrial Manufacturing and Trading and Distribution segments and the company’s resilience and diversification strategy amid the COVID-19 pandemic. The Board of Directors proposed a cash dividend of 4 percent (QR0.04 a share).
Aamal’s gross profit was down 21.4 percent to QR341m compared to QR434m in 2019. The net underlying profit fell 25.8 percent to QR192.9m, and the share of net profits from associates and joint ventures accounted for using the equity method decreased by 19 percent to QR50.4m.
Revenue in the Industrial Manufacturing segment increased significantly, up 19.8 percent year-on-year to QR202.7m, while net profit declined 38.4 percent to QR32.4m, partly due to strong price competition in the market.
Highlights of the year included establishing Aamal Cables for Trading and Contracting to supply the Qatari market with locally produced, high quality power cables and subsequently winning a major three-year contract with Kahramaa worth QR694m. Senyar Drums Factory, the first specialised cable drum manufacturer in Qatar, also started commercial production in the third quarter of 2020.
Aamal’s revenue in the Trading and Distribution segment increased by 13.5 percent year-on-year to QR907.9m, while net profit also increased 22 percent year-on-year to QR120.6m, reflecting strong performances by Aamal Medical and Ebn Sina Medical.
In 2020 Ebn Sina Medical focused on supporting Qatar’s healthcare sector in its fight against COVID-19 and successfully secured local stock including medicines, baby milk, face masks, gloves, and hand sanitisers. Ebn Sina Medical continued its warehouse efficiency improvement programme, commissioning the installation of two large robots which, when installation is completed by the end of the first quarter of 2021, will enable drugs to be dispensed accurately and at high speed.
The year also saw the expansion of Ebn Sina Pharmacy with a contract signed for a new pharmacy located at Msheireb Downtown and scheduled to open by the end of March 2021.
Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented: “In the face of unprecedented challenges globally due to the COVID-19 pandemic, I am hugely proud of Aamal Company’s response at every level during 2020. Our employees responded magnificently to the new ways of working, our subsidiaries played their part in supporting local communities through the pandemic, and our diversified business model again demonstrated its resilience and value to our overall performance, delivering year-on-year revenue growth despite the pandemic.
“Aamal’s financial results for the year, and in particular the performance of our Property segment, were impacted by a drop in property valuations and by our decision to waive rents for tenants at both City Center Doha and Souk Al Harraj. Despite the financial impact, this was absolutely the right decision to take, one that was driven by our desire to support the economy in these challenging times and, in particular, to support our tenants who we have always regarded as partners,” he added.
Sheikh Faisal also highlighted the completion of the redevelopment work at City Center Doha, the company’s investment for a new Glass Reinforced Pipe (GRP) production line at Advanced Pipes and Casts, and the expansion of the Ebn Sina Pharmacy chain.
Aamal’s Trading and Distribution segment has won two major three-year contracts for the supply of tyres for the construction and healthcare sectors and was also awarded a major lubricants supply contract in the construction and raw materials space. The segment is expected to benefit from the normalisation of relations between Qatar and its GCC neighbours, improving costs and the efficiency of the supply chain.
Looking ahead to 2021, Aamal Medical plans to diversify further into IT healthcare, expand its service business, implement its product development strategy, and benefit from opportunities relating to new hospitals in Qatar.
The company’s revenue in the Property segment fell 34.8 percent to QR189.2m, while net profit was down by 91.6 percent to QR18.9m. Looking ahead, the Property segment is expected to see further improvements which will enhance its accessibility and leading market position. These include the two bridges which will connect City Center Doha from both sides (one directly with the metro station and exhibition center, while the other gives further access to residents and businesses located across the mall) as well as the new City Center frontage area that will offer a greater variety of food and beverage options, free WiFi and improved parking facilities. Continued refurbishment will also add value to the existing residential portfolio.
The Managed Services segment was also hit hard by the global pandemic and saw revenue decrease by 26 percent to QR46.7m and net profit decrease by QR7.4m year-on-year to a loss of QR1.7m.
Aamal Services invested in new sanitisation equipment and inventory to meet the increased demand for sanitary services across all client sectors and benefitted from a return to normalised operations in the fourth quarter, winning a significant contract starting in the last quarter of 2021 to support the FIFA 2022 World Cup.
Elsewhere, restrictions due to the pandemic significantly impacted Aamal Travel, while lockdown restrictions meant that Family Entertainment Center and Winter Wonderland remained closed for the majority of 2020.
Sheikh Mohamed bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal, said: “In an exceptionally challenging year, Aamal’s strong performance was underpinned by our financial strength, diversified business model, and our excellent leadership team which performed admirably in such demanding circumstances, both at Group level and across our subsidiaries. The year 2020 also saw Aamal’s local, regional, and international investment profile boosted by the Company’s inclusion in both the MSCI Qatar Small Cap Index and in the QSE 20 Index. Creating synergies between our different businesses remains a key part our growth strategy. Moving forward, we will continue to evaluate all opportunities that will add value to our businesses and deliver long-term shareholder and stakeholder value.”
The company will hold a conference call to discuss the financial results on March 1, 2021 at 2pm Doha time.
