Sheikh Faisal bin Qassim Al Thani (left), Chairman of Aamal and Sheikh Mohamed bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal
Aamal Company (Aamal), one of the region’s leading diversified companies, yesterday announced its financial results for the first quarter ended March 31, 2022, and reported a strong start to the year with total revenue up 45 percent and net profit up 8.4 percent and all four segments delivering top-line growth.
The Company’s net profit attributable to equity holders rose by 8.4 percent to QR73.6m in the first quarter of 2022, compared to QR67.9m during the same period last year.
Total revenue increased by 45.0 percent to QR453.5m from QR312.7m due to the particularly strong performance of the Industrial Manufacturing segment.
Gross profit grew by 10.4 percent to QR104.9m from QR95.0m year-on-year (Y-o-Y), while there were no fair value gains on investment properties in either Q1 2022 or Q1 2021.
Reported earnings per share rose by 8.4 percent to QR0.012 in Q1 2022 from QR0.011 in Q1 2021. Net capital expenditure increased by QR7.2m to QR14.3m from QR7.0m, mainly due to investments in the Property segment. Gearing decreased to 4.1 percent from 4.7 percent during the same period in 2021.
Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal commented: “I am very pleased to report that Aamal has had an excellent start to the year with all four segments delivering positive top-line growth, enabling us to report strong revenue growth of 45 percent year-on-year and net profit growth of 8.4 percent for Aamal Company as a whole”.
He added: “We look forward to the remainder of 2022 with confidence and remain committed to generating long-term shareholder value through the continued profitable operation and expansion of our diversified business platform and leveraging the opportunities provided by the 2030 National Vision. Furthermore, the upcoming FIFA World Cup is expected to provide a further economic boost to Qatar this year, and we remain well positioned to grasp the opportunities this landmark event provides”.
Sheikh Mohamed bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal said: “Aamal’s strong performance in the first quarter of this year is testament to the clear sector focus of our strategy, with a particular focus on Industrial Manufacturing, Healthcare and Real Estate. Our Industrial Manufacturing segment performed particularly well, with revenue up more than 125 percent Y-o-Y. This performance was achieved despite challenges faced by Aamal Readmix stemming from rising direct materials costs, fierce price competition, and a slowdown in demand as projects conclude ahead of the FIFA World Cup. Aamal Maritime Transportation Services performed very well thanks to sustained high demand and increased global shipping rates”.
Sheikh Mohamed added that in the Trading and Distribution segment, Ebn Sina Medical - one of the largest business units in the segment - delivered a sustained positive performance throughout the first quarter, signing agreements with five new healthcare distributors which provide a range of medications. These distributors include well-known names such as Novartis Gene, Durbin, Baxter, Tabuk Pharmaceuticals, and SAJA Pharmaceuticals. Ebn Sina Medical also diversified its business through the addition of a “medical detailing” offering, through which a team of pharmacists provide medical and scientific support for healthcare professionals.
He also said: “Meanwhile, the outstanding revenue and net profit performance of our Managed Services segment is largely attributable to the easing of pandemic-related restrictions on our entertainment and printing businesses, as well as a significant contract win for Aamal Services. We are also pleased to report the launch of ‘Aamal for Car and Truck Maintenance’, a new business unit within the Managed Services segment which will provide maintenance services for the Group’s fleet of vehicles. Permits are currently being finalised and construction of the business unit’s workshop is scheduled to start in June. We look forward to this new business unit commencing operations in late 2022 or early 2023”.
Sheikh Mohamed concluded: “Finally, in our Property segment City Centre Doha continued to perform exceptionally well, opening six new shops with a total area of 3,838sqm, including Debenhams, and other restaurants at the East Food Court”.
A conference call to discuss the results will be held today at 2.00pm Doha time.
