Margin expansion and robust performance of its realty development led Aamal Company report 30% jump year-on-year in net profit to QR115mn in the first three months of this year.
Net underlying profit margins (excluding share of profits of equity accounted for investments in associates and joint ventures) improved to 16.5% versus 13.3% in the previous year period.
“Of particular importance is the quality of this growth, which was driven by margin expansion,” Aamal Company chairman Sheikh Faisal bin Qassim al-Thani said.
The company’s 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, he said.
Group revenue remained consistent, marginally down 0.5% to QR635.6mn during the period, a company spokesman said. Gross profit rose 12% to QR144.3mn.
Highlighting that the property division had an “excellent” quarter with revenue growing almost 19%, accompanied by a strengthening in margin; he said Phase 1 of the redevelopment of City Center, Doha was a major factor behind this impressive growth.
“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,” Sheikh Faisal said.
As the wider Qatari economy has continued to develop and evolve, Aamal remains very much at the forefront of this growth -- occupying market leading positions across the economy -- is alert to new opportunities and possesses the requisite resources to capitalise on them, according to him.
“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,” Aamal Company chief executive Tarek M El Sayed said.
Aamal has always been a prime mover in identifying opportunities for growth early on and then acting decisively to build on them, while consolidating and enhancing the existing market leading positions, its vice chairman Sheikh Mohamed bin Faisal al-Thani said.