Aamal Chairman Sheikh Faisal bin Qassim Al Thani (left) and Aamal CEO Rashid bin Ali Al Mansoori
Doha, Qatar: The Board of Directors of Aamal Company, one of the region’s leading diversified companies, yesterday announced financial results for the year ended December 31, 2023.
The company’s total revenue was up 0.9 percent to QR2,077.2m (2022: QR2,058.9m) while the gross profit was up 3.1 percent to QR499.6m (2022: QR484.7m). The net profit attributable to Aamal equity holders was up 5.7 percent to QR367.5m (2022: QR347.8m).
The company reported earnings per share increased 5.7% to QR0.058 (2022: QR0.055). The net capital expenditure was down 26.1% to QR35.7m (2022: QR48.3m) and gearing increased marginally to 2.4% (2022: 2.0%)
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, commented: “I am pleased to announce a robust overall performanceby Aamal in 2023, with a marginal year-on-year increase in revenue and a 4.7% rise in total net profit. The excellent performance of both our Trading and Distribution segment and our Property segment was particularly noteworthy, while Aamal’s diversified strategy and strong financial position enable us to capitalise on diverse opportunities across different sectors and demonstrate notable financial resilience. The agility and innovation demonstrated by our business units in a dynamic market have contributed to Aamal’s growth during the year, a testament to the adept leadership provided by our talented team.
“Despite the 2023 slowdown in Qatar’s construction industry, stemming largely from the conclusion of FIFA-related projects, our businesses displayed resilience. Strategic initiatives were taken to address specific challenges, ensuring sustained long-term growth. While the Board evaluates several encouraging business opportunities, the Board of Directors will propose to the general assembly on 12 March 2024 to retain the profits from 2023.
In 2023, Aamal’s Trading and Distribution segment reported revenue of QR1,319.0m, a significant 12.5% increase from 2022 and one that was primarily driven by higher sales in Ebn Sina Medical. Consequently, the segment’s net profit increased by 17.9% to QR129.8m.
Rashid bin Ali Al Mansoori, Chief Executive Officer of Aamal, commented: “Aamal’s accomplishments throughout 2023 give me great pride and underlinethe Group’s ongoing capacity to harness its resilient and diversified business model, seizing opportunities to generate value for our shareholders and benefit all our stakeholders.
“Aamal’s Trading and Distribution segment excelled in 2023, with substantial revenue and net profit increases driven by heightened sales in Ebn Sina Medical. We were particularly pleased to launch Aamal Information Technology and look forward to the continued success of this venture through 2024.Our Property segment also reported a robust performance with revenues and net profit growing 5.7% and 14.3% year-on-year, respectively. City Center Doha saw rental uplifts and the opening of 40 new shops, while Aamal Real Estate recorded increased occupancy rates and is aiming for full occupancy across all key locations by the end of 2024. Aamal’s Managed Services segment exhibited resilience in 2023, despite a decline in revenue and net profit primarily due to the conclusion of FIFA-related contracts. Additionally, Maintenance and Management Solutions (MMS) was acquired to by Aamal Service to enhancing its position as a ‘Facility Management Company’.
Ebn Sina Medical achieved a very positive performance in the period driven by high demand from hospitals and increased demand from the private market. Ebn Sina Medical signed a large number of supply and distribution agreements in 2023 and 34 new drug applications were approved, ranging from medicines to consumer health products. While challenges are expected in 2024, the company expects to expand through the opening of new private hospitals and polyclinics, new product launches, and the acquisition of new businesses in therapeutic areas such as oncology and rare diseases.
City Center Doha contributed significantly to this success, with revenue growth driven by regular rental uplifts and new leases signed following the completion of renovations. City Center Doha reached some notable milestones during the year, including the opening of 40 new shops.
In 2023, Doha Cables saw a significant surge in export sales which were up 155% year-on-year, while the successful completion of the 1600 MW Al Kharasaa Solar PV project, led to the award of two new solar projects in Ras Laffan and Mesaieed Industrial Cities (both expected to conclude in early 2024). Looking ahead, new development projects scheduled for 2024 are expected to stimulate the Qatari construction industry. A conference call to discuss the results will be held on21February 2024 at 2.00pm Doha time.
