Financial Results for the first quarter ended 31 March 2021
For release 28 April 2021
Aamal Company Q.P.S.C. (‘Aamal’)
Financial Results for the first quarter ended 31 March 2021
Aamal reports revenue of QAR 312.7m and net profit of QAR 68.1m, a resilient performance in a challenging environment
Doha, [28] April 2021 – the Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the region’s leading diversified companies, today announces its financial results for the first quarter ended 31 March 2021.
Financial Highlights
- Total revenue down 16.4% to QAR 312.7m (Q1 2020: QAR 374.0m) due to lower sales within our Trading and Distribution segment
- Gross profit down 14.1% to QAR 95.0m (Q1 2020: QAR 110.7m)
- Net profit before share of net profits of associates and joint ventures accounted for using the equity method (“net underlying profit”) down 12% to QAR 57.4m (Q1 2020: QAR 65.2m)
- Net underlying profit margins have increased by 0.9 percentage points to 18.4% (Q1 2020: 17.5%)
- Share of net profits from associates and joint ventures accounted for using the equity method decreased 36.3% to QAR 10.7m (Q1 2020: QAR 16.8m)
- There were no fair value gains on investment properties in either Q1 2021 or Q1 2020
- Total Company net profit1 was down 17.0% to QAR 68.1m (Q1 2020: QAR 82.1m), with net profit attributable to Aamal equity holders down 17.7% to QAR 67.9m (Q1 2020: QAR 82.5m)
- Reported earnings per share down 17.7% to QAR 0.011 (Q1 2020: QAR 0.013)
- Net capital expenditure decreased by QAR 11.0m to QAR 7.0m (Q1 2020 QAR 18.1m)
- Gearing has increased to 4.7% (Q1 2020: 1.4%)
1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests
SUMMARY AND OUTLOOK
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:
“Local and international markets continue to face challenges due to the pandemic. While increased COVID-19 cases in Qatar towards the end of the first quarter of 2021 have resulted in stricter lockdown measures, most of our businesses are operating normally.”
“We are pleased to report revenue growth of 15.1% in our Industrial Manufacturing segment, primarily driven by strong performances at Aamal Cement Industries and Aamal Cables. In our Property segment, rental income was less than in the first quarter of 2020 as Aamal adjusted rent levels to reflect market conditions. Moving forward, we expect rental income levels to improve significantly as new areas of City Center Doha have been let and as retailers open for business.
“Our Trading and Distribution segment saw a reduction in orders from the public sector for Ebn Sina Medical and Aamal Medical products, although we expect demand for these to increase in the coming months. Across our four business segments, Aamal continues to focus on improving operational efficiency, optimizing our production base and diversifying into new revenue streams.
“Particularly during these unprecedentedly challenging times, Aamal’s commitment to supporting the local community is as strong as ever. We are proud to have signed a three-year agreement with the Qatar Olympic Committee to sponsor the Al-Adam team.
“Despite the ongoing challenges and uncertainty resulting from the pandemic, Aamal’s long-term strategy and our diversified business model, supported by the strength of our balance sheet and the resilience of our operations, continue to provide a robust platform to maintain our market leading position.”
H.E. Sheikh Mohamed Bin Faisal Al Thani, Chief Executive Officer and Managing Director of Aamal, commented:
“Throughout the first quarter, Aamal’s management team have remained focused on navigating through this challenging environment, and we have continued to take advantage of new business opportunities across all four segments.
“City Center Doha saw the introduction of several major tenants, such as H&M and Boots, and the opening of the East Food Court. Work on the City Center frontage is progressing well and once completed will offer new outdoor cafes and restaurants, as well as attractive landscaping to further enhance its appeal.
“The Trading and Distribution segment benefited from improvements to the supply chain and product availability and saw a number of new initiatives launched across Ebn Sina Pharmacy, Foot Care Center and Aamal Medical. Ebn Sina Pharmacy has expanded its delivery network and the installation of a large robot at its Msheireb branch enables drugs to be dispensed accurately and at high speed. Foot Care Center has introduced new customized insole technology. Aamal Medical continues to provide the latest healthcare technology; in the first quarter it supplied Qatar’s first 3D 4K Microvascular technology used in microvascular surgery. Inevitably, our Managed Services segment continued to be severely impacted by the restrictions imposed by the pandemic on travel, cleaning and hospitality services, and the closure of entertainment facilities.
“Looking to the future, we are excited by the opportunities across all of Aamal’s businesses, in particular the completion of the new frontage and the pipeline of new tenants at City Center Doha. God willing, the pandemic will recede and lockdown measures will be eased over the coming months.”
FURTHER ENQUIRIES
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Aamal Company |
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Laura Ackel – Corporate Communications Officer |
T: +974 6671 6576 |
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Citigate Dewe Rogerson (IR/PR Advisor) |
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Andrew Hey |
T: +44 (0)7903 028 448 |
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Toby Moore |
T: +44 (0)7768 981 763 |
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Kieran Farthing |
T: +44 (0)7774 256545 |
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Laura Banks |
T: +44 (0)7545 942738 |
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Ramiz Al-Turk (Arabic media) |
E: +974 5014 9201 |
ABOUT AAMAL COMPANY Q.P.S.C.
Aamal is one of the Gulf region’s most diversified conglomerates and has been listed on the Qatar Stock Exchange since December 2007. As at 27 April 2021, the Company had a market capitalisation of QAR 6.11bn (US$ 1.68bn).
Aamal’s operations are widely diversified and comprise 27 active business units (subsidiaries and joint ventures) with market leading positions in the key industrial, retail, property, managed services, and medical equipment and pharmaceutical sectors, thereby offering investors a high quality and balanced exposure to Qatar’s wider economic growth and development.
For further information on Aamal Company, please refer to the corporate website: http://www.aamal.com.qa
