Aamal Company has reported 16% jump in net profit to QR423.7mn, translating into earnings-per-share of QR0.57 on total revenue of QR1.99bn in the first nine months of this year.
The industrial manufacturing and shared services units were the principal agents for the improved profitability of the fastest growing diversified company, whose financing gearing (net-debt-to-net-debt-plus equity) remained lower at 4.6% at the end of third quarter of this year.
“This 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,” Aamal chairman Sheikh Faisal bin Qassim al-Thani said.
Although total group revenue during January-September 2016 was marginally behind that in the year-ago period, this was largely offset by strong growth across industrial manufacturing and managed services division businesses in particular, he said.
These two divisions were the main drivers of its performance in the first nine months, with industrial manufacturing increasing its net profit contribution by 71% on broadly flat revenues; while managed services lifted its net profit contribution by 121% on a 50% jump in revenues, which included new, first time contributions from acquired businesses during the period, he said.
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.
“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,” according to Sheikh Mohamed bin Faisal al-Thani, vice-chairman of Aamal.
The creditable performance also reflects the increasingly strong diversification of the group and its ability to offset the impact of slower market conditions in one business area with exposure to faster growth in others, he said.
Aamal’s net capital investment expenditure, however, stood at QR92mn in the first nine months of this year compared to QR108.4mn in the corresponding period of 2015.
“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,” Sheikh Mohamed added.
Tarek M El Sayed, managing director, said the results reflect strong focus on operational excellence and cost efficiency as it continued to translate 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,” he said.