Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal
Doha: Aamal Company (Aamal) has reported a total revenue of QR374m for the first quarters of this year end March 31, 2020 (Q1, 2020), up 16.3 percent to compared to QR321.7m posted for the corresponding period last year (Q1 2019).
Aamal Group, one of the region’s largest diversified companies, has reported its gross profit is down 7.4 percent to QR110.7m in first quarter of 2020 against QR118.8m in Q1, 2019. The Group is taking swift and effective action in response to the COVID-19 pandemic.
Total Company net profit was down 15.7 percent to QR82.1m compared to QR97.3m in Q1 2019, with net profit attributable to Aamal equity holders down 14.5 percent to QR82.5m against qR96.5m in the same period last year. The net profit before share of net profits of associates and joint ventures accounted for using the equity method (net underlying profit) down 18.5 percent to QR65.2m against QR80.0m in Q1 2019.
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, said:“I am pleased to report that despite the negative impact of the COVID-19 pandemic during the first quarter, the resilience of our diversified business model and our continued focus on successfully executing our strategic priorities meant that Aamal was able to deliver robust revenue growth of 16.3 percent year-on-year. However, the challenges arising from the COVID-19 situation are unprecedented and, coupled with intense market competition, impacted sales margins, resulting in a 15.6 percent decline in net profit compared to the first quarter of 2019.”
Sheikh Faisal added: “In line with guidance set out by the Qatari authorities, we have moved quickly to put in place social distancing measures across all of Aamal Company. Our absolute priority is protecting the health and well-being of our employees and customers and, to this end, City Center Doha, Souq Al Haraj and the majority of our operations in our Managed Services segment are currently closed. The Qatari government has closed parts of Qatar’s industrial area where some of our Industrial Manufacturing businesses are located, impacting the performance of Aamal Cement Industries and Aamal Readymix in particular.
Profit in the segment was further impacted by dual impact of continuing price competition seen in tendering for contracts in the period and the additional costs incurred in reinstating formerly shuttered manufacturing capacity in line with the contracted volumes.
“Despite the challenges presented by these unprecedented circumstances, we were pleased to record a strong quarterly performance in our Trading and Distribution segment. This was primarily due to Ebn Sina Medical, again demonstrating the resilience and benefits of our diverse business model.
“I would like to take this opportunity to extend my thanks to all Aamal Company’s employees. They are working tirelessly throughout these challenging times and have shown admirable commitment and agility in responding to the new ways of working, while continuing to support our customers at all times. I would also like to thank the Qatari government for their ongoing support and leadership during this crisis. “Aamal has already proved its ability to adapt effectively and with agility to external change. I am confident in Aamal Company’s long-term strategy and in our capability to adapt quickly in these difficult times, supported by the strength of our balance sheet and the resilience of our operations which remain a robust platform for future growth.”
Sheikh Mohamed bin Faisal Al Thani, CEO and Managing Director of Aamal, said: “The global nature of the COVID-19 pandemic, and the uncertainty around its severity and duration, mean that we expect to feel its impact throughout the second quarter and beyond.
“The safeguarding and wellbeing of our employees and all our stakeholders remains our primary focus. Aamal’s advanced IT infrastructure has enabled our employees to transition smoothly to remote working as we continue to support the Qatari government’s social distancing efforts. Meanwhile, we have taken action across Aamal Company to respond swiftly to the crisis with many of our businesses launching innovative new services to benefit Qatar in these challenging times," Sheikh Mohamed said.
