Sheikh Faisal bin Qassim Al Thani Chairman of Aamal
Doha: Aamal Company (Aamal), one of the Gulf region’s leading diversified companies, yesterday reported a net profit of QR210.9m during the first nine months of the year (9M 2021), an increase of 132.7 percent compared to QR90.6m during the same period last year. Reported earnings per share also rose by 120 percent or QR0.018 to QR0.033 from QR0.015.
In its financial report for the period ended September 30, 2021, Aamal’s total revenue grew by 13.2 percent to QR1.1bn from QR972.0m. Gross profit was up 23.4 to QR298.9m from QR242.3m. While net profit attributable to equity shareholders was also up by 126.2 percent to QR207.2m from QR91.6m.
The Company’s net underlying profit (profit before share in results of associates and joint ventures accounted for using the equity method) increased by 282.7 percent to QR179.4m from QR46.9m. Net underlying profit margin rose to 16.3 percent from 4.8 percent.
Aamal posted a net capital expenditure of QR46.3m compared to QR33.8m during the same period in 2020. Gearing remains low at 5.36 percent.
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal commented: “The momentum of growth and profitability Aamal established in the first half year has been maintained for the nine-month period to September 30, 2021 to deliver strong revenue and net profit growth as we further strengthened our net underlying profit margin to 16.3 percent.
“All segments again made solid contributions to this performance with Industrial Manufacturing, Managed Services and Property all delivering strong double-digit, year-on-year increases in revenues and net profits. Within Industrial Manufacturing, Aamal Maritime Transportation Services saw increased demand due to the opening up of markets and supply chain pressures, while Aamal Readymix and Aamal Cement Industries have benefited from increased project activity over the last quarter, despite an increase in cement raw materials and fuel prices. The majority of our Managed Services businesses performed well, reflecting the positive impact of eased COVID-19 restrictions, while our Property segment benefited from an increase in occupancy to more normal levels,” he added.
Sheikh Faisal also reiterated that pricing enhancements and several significant contracts wins led to a strong contribution by Aamal Trading and Distribution. While Aamal Medical and Ebn Sina Medical again retained a significant proportion of the elevated prior-year revenue and profit levels, despite demand trends for these products and services continuing to normalise after an exceptional 2020.
Sheikh Faisal said: “This strong nine-month performance again demonstrates the effectiveness of our diversified business strategy, alongside our unrelenting focus on cost discipline and operational efficiency. At the same time, we continued to lift capital expenditure on growth opportunities and operational optimisation, while maintaining the strength of our balance sheet with a low level of gearing.
“Although some pandemic-related uncertainty remains, the outlook for Aamal is positive. With the strength of the Qatari economy, its ongoing recovery from the effects of the pandemic and the improving flows of infrastructure and other contracts, Aamal is competitively well positioned to generate further growth and stakeholder value creation over the remainder of the year and into 2022,” he added.
Sheikh Mohamed bin Faisal Al Thani, CEO and Managing Director of Aamal also noted that Aamal’s solid foundations and strong financial position have allowed the Company to use the past year to evaluate and enhance its existing operations.
He said: “We are proud of the progress that we have already delivered this year across so many of our businesses. Recent developments have included the introduction of new heavy vehicles by Aamal Readymix and Gulf Rocks to further enhance operations, the ongoing leasing of newly-added space at City Center Doha which has seen 38 new shops open since the start of the year with another 19 shops expected to open before year end, the near completion of the frontage at City Center which will provide additional leasing space and give the Mall a refreshed look, and an increased focus on IT Healthcare products and services by Aamal Medical.
“We continue to explore new opportunities for incremental growth and value creation, in particular in our Trading and Distribution segment, and will update the market in due course as appropriate. We look forward with confidence to the final quarter of 2021 and beyond,” he added. A conference call to discuss the results will be held on October 31, 2021 at 14.00 Doha time.
