Aamal Company posts QR183.1mn half yearly net profit

HE Sheikh Faisal bin Qassim al-Thani
HE Sheikh Faisal: Strategic development. Aamal Company has posted a half yearly net profit of QR183.1mn and revenue of QR636.1mn.

Aamal chairman HE Sheikh Faisal bin Qassim al-Thani said, “The first half of 2019 has been one of strategic development and evolution in an increasingly competitive environment. While many of Aamal Company’s businesses have continued to perform strongly, this has not been enough to offset the fall in our financial results reported in other areas.  “However, we firmly believe that Aamal’s diversified business model continues to offer both resilience to our external environment and an ongoing pipeline of growth opportunities which we will continue to access throughout the second half of the year.  “We are pleased by the number of strategic initiatives we have implemented across Aamal Company during the first six months of 2019. For example, Ebn Sina Medical has entered into agreements with new strategic partners to significantly broaden and enhance its offering and its new robot pharmacy is now fully open and performing in line with expectations. 

“In the industrial manufacturing segment, work is progressing well with previously announced industrial projects for the production of drums and copper rods, driving synergy creation and a reduction in production costs among the subsidiaries of Senyar Industries. In addition, Aamal is actively evaluating other strategic and value, enhancing industrial projects to expand its industrial business. In Aamal’s property segment, despite mounting competition and reduced market rents, we are witnessing a steady rise in demand for property in the residential sector. 

Sheikh Mohamed: Exploring opportunities

“Looking ahead, in addition to pursuing growth opportunities presented by the Qatar National Vision 2030, we will look to further strengthen the financial base of Aamal’s existing businesses. For example, a number of cost control measures are being implemented at Aamal Readymix and we have now formally announced a new sales strategy for Aamal Services to expand the client base and reduce financial risk. “Finally, I would like to take this opportunity to remind shareholders that on 24 June 2019, Aamal implemented the previously announced 10 for 1 stock split in compliance with the stock split directive issued by the Qatar Financial Market Authority. This market-wide initiative should make trading in Aamal shares more accessible and attractive to retail investors while improving liquidity and trading volumes. Aamal shareholders do not need to take any action because of the stock split and it will not affect the proportionate ownership of existing shareholders.”

Aamal chief executive officer and managing director Sheikh Mohamed bin Faisal al-Thani said, “While the first half of the year has been challenging for Aamal Company, it has meant we have focused on operating as efficiently, innovatively and competitively as possible. Increased competition is placing pressure on margins, so we have to be ever more astute in generating operational and cost efficiencies and driving sales growth, while maintaining the diversity of our business model — one of our fundamental competitive differentiators. “Aamal Company’s overall strategy remains clear. The company seeks to take advantage of the growth opportunities provided by the Qatar National Vision 2030 and to leverage its position as a leading participant across various key economic sectors. This growth strategy remains unchanged and we believe that through a combination of our efforts to improve the financial strength of certain existing businesses and our agility to capitalise on new business opportunities in the market, we remain well-positioned to deliver long-term shareholder value. Specifically, we are currently exploring a number of new investment opportunities within the industrial manufacturing segment, which will be announced in due course if judged to be efficient and to add value to our business model.”

Sources and photo-credits: Gulf Times