Net Profit up by 29.7%, driven by margin expansion

Doha, 28 April 2015

Aamal Company QSC (Aamal), one of the GCC's fastest growing diversified companies, announced its first quarter financial results for the period ended 31 March 2015 to the Qatar Stock Exchange on 28 April 2015.

Financial Highlights

  • Group revenue remains consistent, marginally down 0.5% to QAR 635.6.m (Q1 2014: QAR 638.8m)

  • Gross profit up 11.7% to QAR 144.3m (Q1 2014: 129.2m)

  • Net profit1 up 29.7% to QAR 115.0m (Q1 2014: QAR 88.7m)

  • Net underlying profit margins2 increased to 16.5% (Q1 2014: 13.3%)

  • Reported earnings per share up 23.1% to QAR 0.16 (Q1 2014: QAR 0.13)

  • Net investment in capital expenditure rose by QAR 6.0m to QAR 18.4m (Q1 2014 QAR 12.4m)

  • Low financial gearing4 at 5.1% (31 December 2014: 4.5%) 

1 There were no fair value gains on investment properties in either Q1 2015 or Q1 2014; net profit is stated before the deduction of non-controlling minority interests

2 Excluding share of profits of equity accounted for investments in associates and joint ventures

3 In March 2015, Aamal issued and capitalised bonus shares so Q1 2014 EPS has been adjusted accordingly (Company share capital increased to QAR 6.3bn from QAR 6.0bn)

4 Net debt to net debt plus equity

Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:

"2015 has got off to a very strong start, with net profit up by almost 30% for the first three months compared to the same period last year. Of particular importance is the quality of this growth, which was driven by margin expansion. Our focus has always been on producing returns that are both profitable and sustainable; to date, this has been achieved through first identifying potential opportunities, and then after their careful appraisal, proceeding to establish strong foundations that will underpin this growth. Nowhere is this better illustrated than by our industrial manufacturing division which now makes up almost 60% of our gross sales.

"Yet we should not overlook the contribution of other sectors as we look to consolidate and enhance our current leading market positions elsewhere across the economic spectrum. For instance, our property division

had an excellent quarter growing its revenue almost 19%, accompanied by a strengthening in margin. Phase 1 of the redevelopment of City Center, Doha was a major factor behind this impressive growth and, I believe, encapsulates our considered and disciplined approach to capital allocation. I am also pleased to say that we intend to build on this success and that good progress is continuing to be made towards securing the necessary permissions for Phase 2 of the redevelopment.

"Furthermore, we have set-up a joint venture agreement with ECE Projektmanagement, the leading German retail mall and shopping centre operator, to meet the growing need for comprehensive property management of shopping centres both in Qatar and potentially across the wider MENA region. We have worked closely with ECE for the past 10 years to help make City Center the flagship shopping mall in Doha and we intend to leverage this collective expertise. This is yet one more example of how we continue to remain "best in class" in our chosen fields, and to be the partner of choice for those leading international companies who wish to build their presence in Qatar and the wider region, bringing their valuable acumen and skills with them.

"As the wider Qatari economy has continued to develop and evolve, Aamal remains very much at the forefront of this growth: it occupies market leading positions across the economy, is always alert to new opportunities and possesses the requisite resources to capitalise on them. Aamal is able to offer investors a high quality and balanced exposure to the Qatar story. Commensurate with our status and investment profile as a proxy for the Qatari economy, we are delighted that from 1 April this year, Aamal has been made a constituent member of the QE Index, a measure of the 20 largest and most liquid stocks listed on the Qatar market."

SUMMARY AND OUTLOOK

H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman of Aamal, commented:
"I highlighted the strength of our performance at our full year results for 2014 and so I am very pleased to see that the momentum has carried on into 2015, yet not altogether surprised. At Aamal, we have always been a prime mover in identifying opportunities for growth early on and then acting decisively to build on them, whilst consolidating and enhancing our existing market leading positions. This balanced and diversified strategy has served us well, as borne out by our excellent track record, and I have every confidence that it will continue to do so."

Mr. Tarek M. El Sayed, Managing Director said:
"Although Aamal is primarily an industrial manufacturing company, now generating almost 60% of its revenues and so locked into the acceleration in Qatari infrastructure build, it is also important to remember that it occupies leading market positions across the full range of sectors. This includes real estate, where our property division has recorded its best ever set of results following the successful completion of the Phase 1 redevelopment works at City Center, the premier shopping mall in Doha.

"This broad and balanced exposure means that investors in Aamal are directly participating in the growth of Qatar itself. So, it was particularly pleasing that recognition has been made of Aamal's leading status with its inclusion in the QE Index from 1 April this year."

-Ends-

Further enquiries
Aamal Company
+ 974 4435 0666
Arwa Goussous, Corporate Communications Manager
(mobile # +974 5513 9539)
arwa.goussous@aamal.com.qa

Citigate Dewe Rogerson
Nick Cox-Johnson
(mobile # +44 (0)7957 596 729)
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Shabnam Bashir
(mobile # +44 (0)7903 849729)
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Ramiz Al-Turk (Arabic media)
(mobile # +974 5014 9201)
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About Aamal Company QSC
Aamal Company is one of the GCC's fastest growing diversified conglomerates, with a market capitalisation at 27 April 2015 of QAR 10.5bn (US$ 2.9bn), delivering a compound annual growth rate in net profit before fair value gains on investment properties in excess of 13% from 2006-2014 and generating annual revenues of QAR 2,139m (US$ 588m) in 2014.  Focused on sustained, profitable growth and strongly diversified for balanced exposure across Qatar's rapidly growing economy, Aamal's operations comprise 23 business units with market leading positions in the key industrial, retail, property, managed services and medical equipment and pharmaceutical sectors. Aamal is one of the largest diversified companies quoted on the Qatar Stock Exchange, having been listed since December 2007, and is a constituent member of the QE Index which is a measure of the 20 largest and most liquid stocks listed on the Qatar market.

For further information on Aamal Company and the full financial statements for the three months ended 31 March 2015, please refer to the corporate website: www.aamal.com.qa

© Press Release 2015