Strong recovery in revenue and earnings growth across the sectors helped Aamal Company report about seven-fold year-on-year growth in net profit to QR131.1mn in the first half (H1) of 2021.
The net underlying profit margin substantially improved to 15.4% in H1-2021 compared to (-) 1.4% the previous year period.
“Aamal performed strongly over the first half year, translating improved top-line revenues into net profit and earnings per share growth. This performance reflects the resilience of Aamal’s diversified business strategy and our focus on operational efficiency, production base optimisation and financial discipline as we navigated through the pandemic to date," HE Sheikh Faisal bin Qassim al-Thani, chairman of Aamal, said.
Aamal has restored all business segments to profitability in the half year and increased capital investment while maintaining a strong balance sheet and low gearing, he said.
"Aamal is therefore well positioned, both to weather any future impacts of the pandemic and to benefit from the continued recovery of the wider economy," he said.
“Looking ahead, Aamal is in excellent shape, with the right strategy, market diversification, operational efficiency and financial strength and resilience to continuing to deliver growth and value for all stakeholders while contributing to the continuing development of the Qatar economy. We look forward to the second half of the year with confidence,” Sheikh Faisal said.
The industrial manufacturing segment's revenue rose 79% to QR173mn and net profit by 28.2% to QR24.4mn. New contract wins led revenues of Aamal Readymix and Aamal Cement grow 6.1% and 27.5% year-on-year respectively.
Aamal Cement's net profit more than tripled to QR1.4mn, while Aamal Readymix reduced its net loss by 51.3% to QR1.9mn as the ongoing measures were implemented to protect margins, reduce costs and improve pricing and product mix amidst intense price competition in the ready-mix market.
Finding that all business units benefited from the trend towards normalisation in demand levels related to infrastructure projects, Aamal said "as demand continues to track the increasing flow of contracts relating to the FIFA World Cup 2022 and Qatar’s pipeline of other major infrastructure projects continues to come on stream, volumes are expected to increase, supporting gradual margin improvement over the course of the second half of 2021 and beyond."
Within its trade and distribution segment, Ebn Sina and Aamal Medical continued to perform well financially and operationally, retaining a significant proportion of the elevated H1 2020 revenue and profit levels.
Ebn Sina introduced a new warehouse delivery system, “Digisal”, to automate the warehouse supply process by digitalising the receipt of orders at the warehouse, processing and delivery to customers.
It also received two robots for its warehouse for installation in the third quarter of 2021. The construction of Ebn Sina's new warehouse at Manateq is underway and this is expected to be operational during the second quarter of 2022.
Aamal Trading and Distribution’s automative businesses including Bridgestone Tyres performed well in the second quarter, delivering enhanced revenue growth and profitability as it benefited from increased operational hours as restrictions started to ease.
Further progress is expected in the second half as restrictions continue easing, through enhanced sales and marketing activities and greater availability of stock to meet customer demand.
The property segment revenue grew 59.9% year-on-year to QR120.4mn and net profit was QR93.3mn, reflecting the ongoing normalising of rental revenues in the first half and the elimination of negative fair value adjustments made in the first half of 2020 at the height of the pandemic restrictions.
A growing number of new retail outlets opened at City Center Doha during the first half.
Work continues with the development of the City Center frontage which will see the launch of new outdoor cafes and restaurants, as well as landscaping and work on two bridges connecting the mall to the metro station and the central business district, the initiatives which will improve the customer experience at City Center.
The H1-2021 saw a gradual return to normal for parts of the managed services segment. Revenue was up 8.5% year-on-year to QR27.3mn and net profit more than doubled to QR0.7mn.
“The momentum of our performance in H1 has carried into the start of the second half year and we look forward to the remainder of 2021 with confidence as we continue to meet the growing demand for our high-quality products, bring new and innovative products and services to the market and explore new opportunities for incremental growth and value creation,” said Sheikh Mohamed bin Faisal al-Thani, chief executive and managing director of Aamal.
“Aamal performed strongly over the first half year, translating improved top-line revenues into net profit and earnings per share growth. This performance reflects the resilience of Aamal’s diversified business strategy and our focus on operational efficiency, production base optimisation and financial discipline as we navigated through the pandemic to date," HE Sheikh Faisal bin Qassim al-Thani, chairman of Aamal, said.
Aamal has restored all business segments to profitability in the half year and increased capital investment while maintaining a strong balance sheet and low gearing, he said.
"Aamal is therefore well positioned, both to weather any future impacts of the pandemic and to benefit from the continued recovery of the wider economy," he said.
“Looking ahead, Aamal is in excellent shape, with the right strategy, market diversification, operational efficiency and financial strength and resilience to continuing to deliver growth and value for all stakeholders while contributing to the continuing development of the Qatar economy. We look forward to the second half of the year with confidence,” Sheikh Faisal said.
The industrial manufacturing segment's revenue rose 79% to QR173mn and net profit by 28.2% to QR24.4mn. New contract wins led revenues of Aamal Readymix and Aamal Cement grow 6.1% and 27.5% year-on-year respectively.
Aamal Cement's net profit more than tripled to QR1.4mn, while Aamal Readymix reduced its net loss by 51.3% to QR1.9mn as the ongoing measures were implemented to protect margins, reduce costs and improve pricing and product mix amidst intense price competition in the ready-mix market.
Finding that all business units benefited from the trend towards normalisation in demand levels related to infrastructure projects, Aamal said "as demand continues to track the increasing flow of contracts relating to the FIFA World Cup 2022 and Qatar’s pipeline of other major infrastructure projects continues to come on stream, volumes are expected to increase, supporting gradual margin improvement over the course of the second half of 2021 and beyond."
Within its trade and distribution segment, Ebn Sina and Aamal Medical continued to perform well financially and operationally, retaining a significant proportion of the elevated H1 2020 revenue and profit levels.
Ebn Sina introduced a new warehouse delivery system, “Digisal”, to automate the warehouse supply process by digitalising the receipt of orders at the warehouse, processing and delivery to customers.
It also received two robots for its warehouse for installation in the third quarter of 2021. The construction of Ebn Sina's new warehouse at Manateq is underway and this is expected to be operational during the second quarter of 2022.
Aamal Trading and Distribution’s automative businesses including Bridgestone Tyres performed well in the second quarter, delivering enhanced revenue growth and profitability as it benefited from increased operational hours as restrictions started to ease.
Further progress is expected in the second half as restrictions continue easing, through enhanced sales and marketing activities and greater availability of stock to meet customer demand.
The property segment revenue grew 59.9% year-on-year to QR120.4mn and net profit was QR93.3mn, reflecting the ongoing normalising of rental revenues in the first half and the elimination of negative fair value adjustments made in the first half of 2020 at the height of the pandemic restrictions.
A growing number of new retail outlets opened at City Center Doha during the first half.
Work continues with the development of the City Center frontage which will see the launch of new outdoor cafes and restaurants, as well as landscaping and work on two bridges connecting the mall to the metro station and the central business district, the initiatives which will improve the customer experience at City Center.
The H1-2021 saw a gradual return to normal for parts of the managed services segment. Revenue was up 8.5% year-on-year to QR27.3mn and net profit more than doubled to QR0.7mn.
“The momentum of our performance in H1 has carried into the start of the second half year and we look forward to the remainder of 2021 with confidence as we continue to meet the growing demand for our high-quality products, bring new and innovative products and services to the market and explore new opportunities for incremental growth and value creation,” said Sheikh Mohamed bin Faisal al-Thani, chief executive and managing director of Aamal.