The Board of Directors of Aamal Company QPSC (Aamal), one of the region’s leading diversified companies, announces its financial results for the first half of 2023, ending 30 June.

Financial highlights

  • Total revenue up 9.5% to QAR1,067.4 million (H1 2022: QAR974.4 million), with a particularly strong performance by the trading and distribution segment
  • Gross profit up 3.7% to QAR238.2 million (H1 2022: QAR229.7 million)
  • There were no fair value gains on investment properties in either H1 2023 or H1 2022
  • Net profit attributable to Aamal equity holders up 6.6% to QAR166.8 million (H1 2022: QAR156.4 million)
  • Reported earnings per share up 6.6% to QAR0.026 (H1 2022: QAR0.025)
  • Net capital expenditure decreased by QAR15.5 million to QAR11.9 million (H1 2022: QAR27.4 million)
  • Gearing decreased to 1.70% (H1 2022: 4.1%)

In a statement, Aamal Chairman Sheikh Faisal Bin Qassim Al Thani, said they are pleased to report the company’s robust performance during the first half of the year, with revenue and net profit up 9.5% and 5.5% year-on-year, respectively. He said that they have once again seen the benefits of their diversification strategy which so successfully underpins Aamal’s resilience and growth.

Following the financial report, Aamal’s Trading and Distribution, Property and Managed Services segments all reported an increase in net profit. The Industrial Manufacturing segment has had a challenging six months with a drop in sales at Aamal Maritime Transportation Services due to declining shipping rates, as well as lower sales at Gulf Rocks and Aamal Cable.

Sheikh Faisal Bin Qassim
Aamal Chairman Sheikh Faisal Bin Qassim Al Thani

Senyar Industries, however, performed strongly, primarily due to Elsewedy Cables Qatar, winning a significant 30-month contract worth over QAR1.2 billion with Kahramaa, while Aamal Readymix secured a contract for the Ashghal project valued at more than QAR40 million.

Additionally, the contract won by Tiga Information Technologies Qatar, worth QAR320 million over five years – to provide IT solutions to the healthcare sector in Qatar – has positively impacted Aamal’s Trading and Distribution segment.

Aamal’s Property segment has also exhibited promising growth, with new tenants welcomed to City Center and Aamal Real Estate reporting increased occupancy rates. The Managed Services segment continues to perform well after the closures and restrictions caused by COVID-19. Family Entertainment and Aamal Travel were particularly affected by the pandemic, but are now seen with encouraging progress.

Moreover, Aamal Services has also secured some important contract wins, including two new contracts with the Ministry of Municipality worth QAR45 million over three years and two new contracts with Mowasalat worth QAR100 million over five years.

Al Thani said that their diverse business strategy and proven resilience are driving Aamal’s further development. He added that they are very well-positioned to embrace the future with confidence.

BREAKDOWN BY SEGMENT (Notes: there may be differences due to rounding)

Aamal Revenue & Net Profit

SEGMENTAL BREAKDOWN (Notes: there may be differences due to rounding)

Aamal Industrial Manufacturing
The Industrial Manufacturing segment experienced a challenging six months and saw a decline in both revenue and net profit. Revenue fell by 22.7% year-on-year and net profit declined by 33.5% year-on-year, primarily due to lower deliveries and reduced shipping rates.

Aamal Readymix saw revenue decline compared to the first half of 2022, as major projects that were expected to start were postponed or are progressing more slowly than expected. Nevertheless, Aamal Readymix saw an improved performance as a result of more effective receivables management and stringent cost control measures.

Aamal Cement saw a fall in revenue and net profit, reflecting reduced market demand and a contraction in gross profit margins. Senyar Industries delivered a robust improvement in net profit, largely due to Elsewedy Cables Qatar securing a significant 30-month contract valued at over QAR1.2 billion with Kahramaa. Ci-San, however, saw a drop in revenue and net profit due to the fall in global shipping rates which had an adverse impact on Aamal Maritime.

Moving forward, the company anticipates more contract wins as new industrial projects are announced, and as they continue to enhance their export business through Senyar Industries.

Trading and Distribution performed robustly in the first half of 2023, with a 30.9% year-on-year increase in revenue and a net profit increase of 20.9% year-on-year. This impressive growth can primarily be attributed to the substantial increase in sales at Ebn Sina Medical, following the successful implementation of enhancements to its business model.

Ebn Sina Pharmacy
Ebn Sina Pharmacy

Ebn Sina Pharmacy has expanded its presence by opening a second branch in City Center Doha, increasing its presence in high-footfall locations. It now has five branches in total, with a further two being prepared in Lusail City and the Duhail area and expected to open in the third quarter.

While Aamal Medical saw a fall in revenue, net profit grew due to the reversal of impairment losses on trade receivables and the impact of cost-efficiency initiatives.  The first half of the year posed significant challenges for Aamal Trading which saw a fall in net profit due to promotions and increased warehousing costs.

The outlook for Trading and Distribution is promising, particularly in the healthcare sector where the company continue to expand offerings in IT healthcare solutions, expand distribution agreements through the addition of new products, and new opportunities aligned with the business strategy for the sector.


Aamal Property

The Property segment performed strongly in the first six months of 2023, with both City Center and Aamal Real Estate delivering positive results. Property revenues increased to QAR154.3 million, up 8.7% compared to H1 2022. This performance translated into a 6.0% growth in net profit.

City Center reported increased revenue and net profit growth, driven by regular rental uplifts, the addition of new tenants, and the continued recovery from the COVID-19 pandemic.

Aamal Real Estate also saw growth in revenue and net profit as a result of improved occupancy rates and commercial property rental rates increasing during the period. The performance of ECE also contributed to the positive results of the Property segment.

Aamal has a high-quality property portfolio in prime locations which continuously generates high demand. The company said they will continue to invest in assets to maintain their quality, market value and attractiveness in the market.


Aamal Managed Services

The Managed Services segment saw a 14.8% decline in revenue year-on-year, primarily due to the end of FIFA World Cup-related service contracts. However, the segment showed a significant improvement in net profit, increasing by 37.6% to QAR7.3 million. Aamal Services, Family Entertainment Center and Aamal Travel all contributed to this positive result as they continue to recover from the closures and restrictions caused by the pandemic.

Aamal Services saw an increase in gross profit margin due to lower recruitment costs. Family Entertainment Center operated every day throughout the period and successfully returned to profit. Aamal Travel benefited from the fading impact of COVID-19 on the travel industry.

Mr. Rashid Al Mansoori - السيد راشد المنصوري
Rashid Al Mansoori

The outlook for the Managed Services segment is encouraging. Aamal Services has secured some important contract wins, namely two contracts worth QAR45 million over three years with the Ministry of Municipality and two contracts worth QAR100 million over five years with Mowasalat.  Furthermore, Aamal recently announced its intention for Aamal Services to acquire Maintenance Management Solutions.

Growth prospects

Aamal Chief Executive Officer Rashid bin Ali Al Mansoori said that their company’s strategy continues to deliver.

He said they are successfully capitalising on the growth prospects presented by Qatar National Vision 2030 and leveraging their prominent position as a key player in diverse economic sectors. By enhancing the financial robustness of specific existing ventures and acting with agility to seize a variety of new business opportunities as they arise, he said they are well-equipped to generate long-term value for shareholders.

Our business model’s diversity and this resolute pursuit of organic and non-organic growth opportunities have played a pivotal role in strengthening our market position in critical sectors.

In line with this, they recently announced plans for Aamal Services to acquire Maintenance Management Solutions and are in the process of considering a range of other opportunities and will update the market in due course.

Al Mansoori also reiterated Aamal’s unwavering commitment to the community. And as part of these ongoing efforts, they announced the launch of Aamal Ride, an exciting event in November that will widely promote the benefits of sport and an active lifestyle.

In closing, he said they are immensely proud of Aamal’s recent achievements, expressing his gratitude to their excellent and dedicated team, valued partners and shareholders, for their continued support.

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