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
Aamal Company (Aamal), one of the region’s leading diversified companies, yesterday announced a net profit of QR68.1m for the first quarter of 2021.
The Group also reported a revenue of QR312.7m, down by 16.4 percent compared to QR374.0m during the same period last year due to lower sales within its Trading and Distribution segment amid the ongoing pandemic.
Aamal’s gross profit was down by 14.1 percent to QR95.0m compared to QR110.7m reported in Q1 2020. Net underlying profit margins have increased by 0.9 percentage points to 18.4 percent.
Total Company net profit was down 17.0 percent to QR68.1m, with net profit attributable to Aamal equity holders down 17.7 percent to QR67.9m. Reported earnings per share declined by 17.7 percent to QR0.011.
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, said: “Local and international markets continue to face challenges due to the pandemic. While increased COVID-19 cases in Qatar towards the end of the first quarter of 2021 have resulted in stricter lockdown measures, most of our businesses are operating normally.”
He added: “We are pleased to report revenue growth of 15.1 percent in our Industrial Manufacturing segment, primarily driven by strong performances at Aamal Cement Industries and Aamal Cables.
In our Property segment, rental income was less than in the first quarter of 2020 as Aamal adjusted rent levels to reflect market conditions. Moving forward, we expect rental income levels to improve significantly as new areas of City Center Doha have been let and as retailers open for business”.
Sheikh Faisal said that Aamal’s Trading and Distribution segment saw a reduction in orders from the public sector for Ebn Sina Medical and Aamal Medical products, although the Company expects demand to increase in the coming months.
Across its four business segments, Aamal continues to focus on improving operational efficiency, optimising its production base and diversifying into new revenue streams. Sheikh Faisal added: “Particularly during these unprecedentedly challenging times, Aamal’s commitment to supporting the local community is as strong as ever.
We are proud to have signed a three-year agreement with the Qatar Olympic Committee to sponsor the Al Adam team. Despite the ongoing challenges and uncertainty resulting from the pandemic, Aamal’s long-term strategy and our diversified business model, supported by the strength of our balance sheet and the resilience of our operations, continue to provide a robust platform to maintain our market leading position.”
Sheikh Mohamed bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal, said: “Throughout the first quarter, Aamal’s management team have remained focused on navigating through this challenging environment, and we have continued to take advantage of new business opportunities across all four segments.
City Center Doha saw the introduction of several major tenants, such as H&M and Boots, and the opening of the East Food Court. Work on the City Center frontage is progressing well and once completed will offer new outdoor cafes and restaurants, as well as attractive landscaping to further enhance its appeal”.
Sheikh Mohamed said Aamal’s Trading and Distribution segment benefited from improvements to the supply chain and product availability and saw a number of new initiatives launched across Ebn Sina Pharmacy, Foot Care Center and Aamal Medical.
Ebn Sina Pharmacy has expanded its delivery network and the installation of a large robot at its Msheireb branch enables drugs to be dispensed accurately and at high speed. Foot Care Center has introduced new customised insole technology, while Aamal Medical continues to provide the latest healthcare technology.
In the first quarter, it supplied Qatar’s first 3D 4K Microvascular technology used in microvascular surgery. Inevitably, Aamal’s Managed Services segment continued to be severely impacted by the restrictions imposed by the pandemic on travel, cleaning and hospitality services, and the closure of entertainment facilities.
Sheikh Mohamed added: “Looking to the future, we are excited by the opportunities across all of Aamal’s businesses, in particular the completion of the new frontage and the pipeline of new tenants at City Center Doha. God willing, the pandemic will recede and lockdown measures will be eased over the coming months.”
