Aamal posts QR322mn profit on revenue of QR1.29bn in 2019
February 18 2020 07:24 PM
Sheikh Mohamed and HE Sheikh Faisal
Sheikh Mohamed and HE Sheikh Faisal

Aamal Company, a leading diversified group in the Gulf region, has reported net profit of QR322mn on revenue of QR1.29bn in 2019 and suggested 4% cash dividend.

The company however saw its net underlying profit margins decline by 6.9 percentage points to 20.1%.

“Although 2019 saw significant market headwinds in the construction industry, our diverse business model continued to prove highly resilient and Aamal responded positively in this challenging environment," said its chairman HE Sheikh Faisal bin Qassim al-Thani.

Despite lower profitability, 2019 was "undoubtedly a positive" year from an operational perspective and the industrial manufacturing segment businesses successfully progressed several strategic investments from which the group expects to reap the benefits in 2020. In the industrial manufacturing segment, revenue was QR169mn and net profit stood at QR53mn in 2019.

The segment saw decline in revenue and net profits, reflecting the combined effect of a slowdown in the Qatari construction sector and increased competition which impacted all companies in the segment, the largest impact being felt at Senyar Industries owing to slower demand.

"However, the outlook for the construction sector in 2020 is positive based on a significant increase in enquiries related to infrastructure development and completions ahead of the FIFA 2022 World Cup," a company spokesman said.

In 2019, increased competition drove average prices down, placing further pressure on revenues and profit margins.

Revenue in the trading and distribution segment increased significantly, up 14.8% year-on-year to QR800mn, while net profit declined 21.1% to QR99mn partly due to strong price competition in the market.

But 2020 presents many opportunities for Aamal Medical, supported by a strong pipeline of promising projects. Aamal Medical will continue to explore the introduction to Qatar of the latest healthcare technologies such as artificial intelligence, stem cell therapy, mobile health and telemedicine.

Revenue in the property segment was broadly flat at QR290mn in 2019, while net profit was down 7.1% to QR224mn. This reflects the tougher retail environment stemming from the blockade, increased maintenance, utility and insurance costs, and the absence of lease termination penalties which Aamal benefited from in 2018.

"In 2020, City Center Doha expects to see new shop openings which will drive footfall through the mall and enhance the visitor experience,” the spokesman said, adding furthermore, an agreement has been signed with Public Works Authority to build a pedestrian bridge (expected to start by mid-2020), which will directly connect the mall’s first floor to the DECC metro station. In the managed services segment, revenues and net profit were QR63mn and QR6mn respectively. This was lower year-on-year, largely due to the deconsolidation of ECCO Gulf, stemming from the findings of a review undertaken in accordance with its internal controls over financial reporting framework.

Profit at Aamal Travel jumped 25% year-on-year in 2019, as the company established new connections with several football-playing South American countries, with profit margins going up 7 percentage points. In 2020, Aamal Travel plans to open a new branch and participate in the Qatar Travel Market for increased exposure.

“In 2020, we will also progress internal projects such as the digital transformation of Aamal and undertake a detailed review of our supply chain to ensure we are only partnering with suppliers who are fully aligned to our sustainability principles," said Sheikh Mohamed bin Faisal al-Thani, chief executive and managing director of Aamal.

There are no comments.

LEAVE A COMMENT Your email address will not be published. Required fields are marked*