Aamal Company has earned a total revenue of QR1.3bn in 2020, up 1% on the previous year, driven by increased revenue in its industrial manufacturing, trading and distribution segments.
Aamal chief executive officer and managing director Sheikh Mohamed bin Faisal al-Thani.
Aamal’s 2020 net profit was down 62.2% to QR121.7mn with net profit attributable to Aamal equity holders down 61.7% to QR123.3mn.
Aamal chairman HE Sheikh Faisal bin Qassim al-Thani said, “In the face of unprecedented challenges globally due to the Covid-19 pandemic, I am hugely proud of Aamal Company’s response at every level during 2020. Our employees responded magnificently to the new ways of working, our subsidiaries played their part in supporting local communities through the pandemic, and our diversified business model again demonstrated its resilience and value to our overall performance, delivering year-on-year revenue growth despite the pandemic.
“Aamal’s financial results for the year, and in particular the performance of our property segment, were impacted by a drop in property valuations and by our decision to waive rents for tenants at both City Center Doha and Souk Al Harraj. Despite the financial impact, this was absolutely the right decision to take, one that was driven by our desire to support the economy in these challenging times and, in particular, to support our tenants who we have always regarded as partners.
“Aamal’s financial strength and resilient business model enabled us to continue to perform well at an operational level across our industrial manufacturing, property and trading and distribution segments. Highlights included the completion of the redevelopment work at City Center Doha, the start of production at Senyar Drums Factory (the first specialised cable drum manufacturer in Qatar), investment for a new Glass Reinforced Pipe (GRP) production line at Advanced Pipes and Casts, and the expansion of the Ebn Sina Pharmacy chain.
“I am particularly proud of the performances of Ebn Sina Medical and Aamal Medical, both of which acted promptly and with enormous professionalism to support Qatar’s public healthcare sector in addressing the challenges of the pandemic and a shortage of medical supplies. This is a great example of how the private and public sectors can successfully work together to overcome even the most difficult conditions. Aamal continues to support the community and has been proud to sign an agreement with the Qatar Cancer Society.
Sheikh Faisal added, “Although the pandemic means that these remain uncertain times, Aamal will continue to capitalise on the opportunities generated by the government’s strategy to prioritise public spending and the many opportunities provided by the Qatar National Vision 2030, leveraging our position as a leading participant across a number of key economic sectors. Aamal’s Board of Directors is pleased to recommend for approval a 2020 cash dividend of 4%. We remain confident in the outlook for Aamal Company and in our ability to deliver for all our stakeholders”.
Sheikh Mohamed bin Faisal al-Thani, Aamal chief executive officer and managing director, commented, “In an exceptionally challenging year, Aamal’s strong performance was underpinned by our financial strength, by our diversified business model that provides resilience, and by our excellent leadership team which performed admirably in such demanding circumstances, both at Group level and across our subsidiaries.
“Two major milestones during 2020 were particularly noteworthy: the completion of phase two of the redevelopment of City Center Doha; and Aamal Cables for Trading and Contracting winning a QR694mn three-year contract with Kahramaa. 2020 also saw Aamal’s local, regional, and international investment profile boosted by the Company’s inclusion in both the MSCI Qatar Small Cap Index and in the QSE 20 Index.
“Creating synergies between our different businesses remains a key part our growth strategy – for example, the start of production at Senyar Drums factory in Q3, 2020 will add value to other subsidiaries within our Industrial Manufacturing segment. Elsewhere, key initiatives in 2021 include building upon the strong performances of Ebn Sina Medical and Aamal Medical and expanding into IT healthcare solutions; further enhancing our property portfolio through the continued refurbishment of our residential properties and completing development of the frontage at City Center; and starting commercial production of Advanced Pipes and Casts’ Glass Reinforced Pipe.
“Moving forward, we will continue to evaluate all opportunities that will add value to our businesses and deliver long-term shareholder and stakeholder value.”