Doha, Qatar: The Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the region’s leading diversified companies, today announces its financial results for the six months ended 30 June 2023. Total revenue increased 9.5 percent to QR1,067.4m (H1 2022: QR974.4m), with a particularly strong performance by the Trading and Distribution segment.

The Gross profit was up 3.7 percent to QR238.2m (H1 2022: QAR 229.7m). There were no fair value gains on investment properties in either H1 2023 or H1 2022. The Net profit attributable to Aamal equity holders rose 6.6 percent to QR166.8m (H1 2022: QR156.4m)

Reported earnings per share was up 6.6 percent to QR0.026 (H1 2022: QAR 0.025). The Net capital expenditure decreased by QR 15.5m to QR 11.9m (H1 2022: QR27.4m) and gearing decreased to 1.70 percent (H1 2022: 4.1 percent)

Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal, commented: “I am pleased to report a robust performance by Aamal during the first half of this year, with revenue and net profit up 9.5 percent and 5.5 percent year-on-year respectively. We have once again seen the benefits of our diversification strategy which so successfully underpins Aamal’s resilience and growth.

“Our Trading and Distribution, Property, and Managed Services segments all reported an increase in net profit. Our Industrial Manufacturing segment has had a challenging six months with a drop in sales at Aamal Maritime Transportation Services due to declining shipping rates, as well as lower sales at Gulf Rocks and Aamal Cable. Senyar Industries, however, performed strongly, primarily due to Elsewedy Cables Qatar winning a significant 30-month contract worth over QR1.2bn with Kahramaa, while Aamal Readymix secured a contract for the Ashghal project valued at more than QR40m. Additionally, the contract won by Tiga Information Technologies Qatar, worth QR320m over five years to provide IT solutions to the healthcare sector in Qatar, has positively impacted our Trading and Distribution segment.

“Aamal’s Property segment has shown promising growth, with new tenants welcomed to City Center and Aamal Real Estate reporting increased occupancy rates. Our Managed Services segment continues to perform well as we recover from the closures and restrictions caused by the COVID-19 pandemic. Family Entertainment and Aamal Travel were particularly affected by the pandemic, but we are seeing encouraging progress across both businesses."

"Moreover, Aamal Services has also secured some important contract wins, including two new contracts with the Ministry of Municipality worth QR45m over three years and two new contracts with Mowasalat worth QR100m over five years."

“Our diverse business strategy and proven resilience is driving Aamal’s further development, and I have no doubt that we are very well positioned to embrace the future with confidence.”

Moving forward, we anticipate more contract wins as new industrial projects are announced and we are also enhancing our export business through Senyar Industries.

Trading and Distribution performed robustly in the first half of 2023, with a 30.9 percent year-on-year increase in revenue and a net profit increase of 20.9 percent year-on-year. This impressive growth can primarily be attributed to the substantial increase in sales at Ebn Sina Medical following the successful implementation of enhancements to its business model.

Ebn Sina Pharmacy has expanded its presence by opening a second branch in City Center Doha, increasing its presence in high footfall locations. It now has five branches in total, with a further two being prepared in Lusail City and the Duhail area and expected to open in the third quarter.

The outlook for Trading and Distribution is promising, particularly in the healthcare sector where we continue to expand our offerings in IT healthcare solutions, expand our distribution agreements through adding new products to our portfolio, and consider new opportunities aligned with our business strategy for the sector.

The Property segment performed strongly in the first six months of 2023, with both City Center and Aamal Real Estate delivering positive results. Property revenues increased to QR154.3m, up 8.7 percent compared to H1 2022.

This performance translated into a 6 percent growth in net profit.

City Center reported increased revenue and net profit growth, driven by regular rental uplifts, the addition of new tenants, and the continued recovery from the COVID-19 pandemic.

Aamal Real Estate also saw growth in revenue and net profit as a result of improved occupancy rates and commercial property rental rates increasing during the period.

The performance of ECE also contributed to the positive results of the Property segment.

We will continue to invest in our assets to maintain their quality, market value and attractiveness in the market.

The Managed Services segment saw a 14.8 percent decline in revenue year-on-year, primarily due to the end of FIFA World Cup-related service contracts.

However, the segment showed a significant improvement in net profit, increasing by 37.6 percent to QR7.3m.

Aamal Services, Family Entertainment Center and Aamal Travel all contributed to this positive result as they continued to recover from the closures and restrictions caused by the pandemic.

Aamal Services saw an increase in gross profit margin due to lower recruitment costs. Family Entertainment Center operated every day throughout the period and successfully returned to profit.

The outlook for the Managed Services segment is encouraging.

Aamal Services has secured some important contract wins, namely two contracts worth QR45m over three years with the Ministry of Municipality and two contracts worth QR100m over five years with Mowasalat.

Furthermore, Aamal recently announced its intention for Aamal Services to acquire Maintenance Management Solutions.

Aamal Chief Executive Officer, Rashid bin Ali Al Mansoori

Rashid bin Ali Al Mansoori, Chief Executive Officer of Aamal, commented: “Aamal Company’s strategy continues to deliver. We are successfully capitalizing on the growth prospects presented by the Qatar National Vision 2030 and leveraging our prominent position as a key player in diverse economic sectors.

By enhancing the financial robustness of specific existing ventures and acting with agility to seize a variety of new business opportunities as they arise, we are well-equipped to generate long-term value for our shareholders.

“Our business model’s diversity and this resolute pursuit of organic and non-organic growth opportunities has played a pivotal role in strengthening our market position in critical sectors.

In line with this, we have recently announced plans for Aamal Services to acquire Maintenance Management Solutions We are in the process of considering a range of other opportunities and will update the market as appropriate in due course.

“I would also like to take this opportunity to reiterate Aamal’s unwavering commitment to the community. As part of our ongoing efforts, we were pleased to recently announce Aamal Ride, an exciting event this November which we very much hope will widely promote the benefits of sport and an active lifestyle.

“I am immensely proud of Aamal’s recent achievements and would like to express my gratitude to our excellent and dedicated team, to our valued partners, and to our shareholders for their continued support. Together, we will continue to drive Aamal’s success and create value for all Aamal stakeholders.”

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