Q1 Financial Results 2014
For release 29 April 2014
Aamal Company QSC (‘Aamal’)
Financial Results for the quarter ended 31 March 2014
Net Profit up by 56.2%
Driven by both revenue growth and margin expansion
Doha, 29 April 2014 - Aamal Company QSC (Aamal), one of the GCC’s fastest growing diversified companies, announced its first quarter financial results for the period ended 31 March 2014 to the Qatar Exchange on 29 April 2014.
Financial Highlights
- Group revenue up 39.0% to QAR 638.8m (Q1 2013: QAR 459.8m)
- Gross profit up 38.2% to QAR 129.2m (Q1 2013: 93.5m)
- Net profit1 up 56.2% to QAR 88.7m (Q1 2013: QAR 56.7m)
- Net profit margins2 increased to 13.3% (Q1 2013: 12.0%)
- Reported earnings per share up 46.2% to QAR 0.14 (Q1 2013: QAR 0.093)
- Net investment in capital expenditure fell by QAR 26.1m to QAR 12.4m (Q1 2013 QAR 38.5m) driven by the completion during the year of Phase 1 of the City Center Doha expansion project and the Advanced Pipes and Cast Company plant
- Low financial gearing4 at 7.2% (31 December 2013: 6.6%)
1 There were no fair value gains on investment properties in either Q1 2014 or Q1 2013; net profit is stated after the deduction of Head Office costs but before the deduction of non-controlling interests
2 Excluding share of profits of equity accounted for investments in associates and joint ventures
3 In April 2013, Aamal issued and capitalized bonus shares so Q1 2013 EPS has been adjusted accordingly (Company share capital increased to QAR 6.0bn from QAR 5.4bn)
4 Net debt to net debt plus equity
Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:
“As Qatar continues to evolve into a modern, diversified and industrial economy, the most effective way we believe to capture, and contribute to, the significant opportunities that are being made available is to be a company with leading market leadership positions across the entire Qatari economic spectrum. This is what Aamal does and will continue to do so as we strengthen our existing positions whilst also seeking out new opportunities to develop, whether alone or in conjunction with leading multinationals who see Aamal as the partner of choice when wanting to enter the Qatari market.
“The laying of these very strong foundations is now starting to pay off handsomely as illustrated with earnings per share for this first quarter up by over 46%. What has been particularly pleasing about this growth is its quality, not just driven by higher revenues but accompanied by an expansion in margins, continuing the trend as reported at the 2013 Full Year results. As a consequence, I look forward to reporting more success for Aamal, as one of the leading companies in Qatar.”
SUMMARY AND OUTLOOK
H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman of Aamal, commented:
“We believe that we have the right business model to participate in, and benefit from Qatar’s diversification away from a predominantly hydrocarbon based economy into a modern, industrial and knowledge-based one. Without wanting to appear complacent, we believe that the very strong start to 2014, particularly as it is made up of a combination of revenue growth and margin expansion, vindicates this strategy and we look forward to building further on these very strong foundations.”
Mr. Tarek El Sayed, Managing Director said:
“As well as growing both revenues and margins, it is important to note that net profits grew across all four divisions at Aamal Company: Industrial Manufacturing, Trading and Distribution, Property and Support Services. It is these strengths in both depth and breadth that are the key hallmarks of Aamal: a market leader in these relevant sectors that span the entire economy, thereby offering a unique direct and balanced exposure to Qatari growth.”
Further enquiries
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Aamal Company |
+ 974 4435 0666 |
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Arwa Goussous, Corporate Communications Manager |
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(mobile # +974 5513 9539) |
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Citigate Dewe Rogerson |
+974 4452 8335
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English language media
Michael Prest (mobile # +974 3373 5083)
Nick Cox-Johnson (mobile # +44 (0)7957 596 729) |
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Arabic language media
Amira Shohdi (mobile # +974 6648 9089) |
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About Aamal Company QSC
Aamal Company is one of the GCC’s fastest growing diversified companies, delivering a compound annual growth rate in net profit in excess of 15% before fair value gains on investment properties from 2006-13 and generating revenues of QAR 2,123m (US$583m) in 2013. Focused on sustained, profitable growth and strongly diversified for balanced exposure across Qatar’s rapidly growing economy, Aamal’s operations comprise 22 business units with market leading positions in the key industrial, retail, property, managed services and medical equipment and pharmaceutical sectors. Aamal is one of the largest diversified companies quoted on the Qatar Exchange, having been listed since December 2007.
For further information on Aamal Company, please refer to the corporate website: http://www.aamal.com.qa
End of Release
