Aamal Company (Aamal), one of the fastest growing diversified companies in GCC, recorded a net profit of QR423.7m for the nine months ended September 2016, up 15.5 percent compared to QR366.7m reported a year ago. Aamal’s group revenue slipped to QR1.99bn from QR2.07bn recorded during the same period in 2015. Gross profit was up 8.2 percent to QR499.1m. The earnings per share was up 9.6 percent to QR0.57.
Announcing the results, Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, commented: “Aamal performed strongly over the first nine months of 2016 in line with management expectations.”
“Total group revenue of QR1.99bn in the period was marginally behind revenue at the same stage last year which benefitted from a number of large unrepeated sales contracts. However, this was largely offset by strong growth across our other Industrial Manufacturing and Managed Services division businesses in particular. These two divisions were the main drivers of our performance in the first nine months, with Industrial Manufacturing increasing its net profit contribution by 71 percent on broadly flat revenues while Managed Services lifted its net profit contribution by 121 percent on revenues almost 50 percent higher which included new, first time contributions from acquired businesses during the period. The Property division also continued to perform well, contributing positively to revenue and profit despite accommodating the temporary disruption in the period to trading at City Centre, Doha as development and improvement work continued to make progress.”
The performance clearly reflects the benefits of the Group’s approach to diversification, building a balanced and resilient portfolio of businesses across key sectors of the broadening Qatari economy, to drive profitable organic growth and margin expansion while maintaining strict control of costs and prudent levels of financial gearing, Sheikh Faisal added. Commenting on the results, Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman of Aamal, said: “In the first nine months of the year Aamal has again demonstrated the sustainability and resilience of its focus on profitable organic growth by delivering higher profits at improved margins while continuing to invest in its business and bring new revenue streams on line. This creditable performance also reflects the increasingly strong diversification of the Group and its ability to offset the impact of slower market conditions inone business area with exposure to faster growth in others. Looking ahead, we have a strong order pipeline and are well positioned to take advantage of further opportunities as they arise. I am confident this will be another successful year for Aamal.”
Tarek M. El Sayed, Managing Director said: “Aamal’s nine-month results again reflect our strong focus on operational excellence and cost efficiency as we continued to translate our top-line performance into higher profits and build an ever stronger foundation for long term value creation. Our proven track record in creating and running businesses efficiently across a broad range of growth sectors continues to position the Group strongly for the opportunities we see emerging over the remainder of the year and beyond.”