Aamal Company, one of the Gulf region’s most diversified conglomerates, has reported an 18.8% year-on-year increase in net profit to QR87.5mn in the first three months of this year.

The reported earnings-per-share increased 18.8% to QR0.014 in the review period. Total revenue grew 12.8% on an annualised basis to QR511.4mn in the first quarter (Q1) of 2023.

"Aamal has made an impressive start to 2023, with strong performances from our trading and distribution; and property segments in particular driving revenue growth of 12.8%," said Rashid bin Ali al-Mansoori, chief executive officer of Aamal.

Highlighting that its trading and distribution segment saw good revenue and profit growth, driven by increased demand for the products and services offered by this sector; he said there are "significant" opportunities across the healthcare sector and "we are focused on continuing to develop our excellent healthcare offering to further capitalise on these trends.”

During Q1-2023, the industrial manufacturing segment won several high-profile new contracts, including Elsewedy Cables’ QR1.2bn 30-month contract with Kahramaa to build new underground cables, and Aamal Readymix securing a QR40mn contract for the Ashghal project to supply drainage tunnels.

Revenue and profits for the segment were impacted during the first quarter by supply chain delays at Aamal Cement and Aamal Readymix, as well as a decline in global shipping rates at Aamal Maritime.

However, the outlook for the segment remains positive as important new infrastructure projects are commissioned across the region.

In the property segment, al-Mansoori said the year-on-year increase in rental levels at Aamal Real Estate and new leases being signed at City Center Doha resulted in a positive performance across the portfolio.

"As we move through 2023, exciting new store openings will further enhance the customer experience at City Center Doha,” he said.

The managed services segment continued to benefit from the easing of pandemic-related restrictions and Aamal Service and family entertainment centre both reported improved financial performance.

The segment secured several important new contracts during the period; Aamal Services was awarded a five-year contract worth QR100mn with Mowasalat to provide cleaning, pest control and vehicle washing services, and ECCO Gulf was awarded a large contract to provide contact centre services to leading hypermarket providing customer support to branches located in Qatar and the Gulf region.

"This is an exciting time for Qatar with the economy forecast to grow strongly throughout 2023 and into 2024 and the Qatar National Vision acting as a significant driver of the economy and of our country’s development for years to come. We look forward with confidence to the remainder of 2023, to seizing the growth and expansion opportunities available to Aamal, to delivering value for our shareholders, and to benefit all our stakeholders and our country,” al-Mansoori said.