Aamal posts QR445.3mn net profit on QR1.29bn revenue


Sheikh Faisal and Sheikh Mohamed: Aamal remains well-positioned for sustainable growth.

Aamal Company has reported a net profit of QR445.3mn on revenues of QR1.29bn in 2018 and recommended 6% cash dividend. Net underlying profit margins have increased by 0.7 percentage points to 27% (2017: 26.3%), a company spokesman said yesterday. “While the year saw a decline in revenue and net profit compared to 2017, our performance was in line with expectations and impacted by pre-identified, short to medium-term factors,” according to HE Sheikh Faisal bin Qassim al-Thani, Aamal Company chairman. Aamal continues to feel the impact of the reclassification of two business entities within the industrial manufacturing segment from subsidiaries to joint ventures, with a consequent change in their accounting presentation. This change will continue to impact the financial results until the first quarter of 2019, at which point the change will have fully annualised, he said.

The industrial manufacturing division saw 60.4% and 39.5% decline in revenue and net profit respectively, attributable to a change in accounting treatment for Senyar Industries and Advanced Pipes and Casts Company, both of which are now accounted for as joint ventures having both previously been consolidated as subsidiaries. Aside from this, 2018 was a year of heightened competition and increased market sensitivity towards price, Aamal said, adding to mitigate these factors and maintain its competitive advantage, the industrial manufacturing has identified several new opportunities for the incremental revenue streams and profitability.Trading and distribution segment saw 7.8% and 9.9% increase in net profit and revenue respectively, on Ebn Sina Medical – the largest business in the trading and distribution segment – which enjoyed a particularly successful year as it saw increases in both revenue and net profit. 

In response to the ongoing Qatar border blockade, it sourced pharmaceutical products directly from the countries of origin (Europe).The property segment reported an 8% fall in revenue and 10% in net profit.As a result of the ongoing upgrade and redevelopment work on Aamal’s flagship City Center Doha shopping mall in the West Bay, the subsidiary saw an 18% decline in net profit. The renovation work, which is progressing on schedule, is being undertaken to keep abreast of competition and cement its status as the country’s premier retail destination. Despite declining rents in the retail sector, Aamal Real Estate, reported an 8% year-on-year increase in revenue and a 7% in net profit as it focused on expanding its residential portfolio through several acquisitions and completing the construction of 63 apartments.

While revenues in the managed services segment increased marginally by 1.5%, net profit soared 17.1% with significant achievements across several subsidiaries. Aamal Services, which primarily serves the business sector and is the largest of the subsidiaries in this segment, saw an 11% fall in revenue but a 58% jump in net profit. This significant increase in net profit is the result of a detailed expenditure review undertaken in early 2018, which led to the successful renegotiation of contract rates with suppliers.“Looking ahead through 2019, Aamal remains well-positioned for further sustainable growth. We will continue to leverage our strong financial position and pursue our successful diversification strategy, building on Aamal’s leading positions across a number of different sectors and selectively expanding so as to create long-term shareholder value,” said Sheikh Mohamed bin Faisal al-Thani, vice-chairman and managing director of Aamal.

Sources and photo-credits: Gulf Times