Aamal Company announces financial results for the six months ended 30 June 2014
The Board of Directors of Aamal Company QSC (“Aamal”), one of the GCC’s fastest growing diversified companies, announces the financial results for the half year ended 30 June 2014.
• Group revenue up 14.2% to QAR 1.1bn (H1 2013: 959.6m)
• Gross profit up 19.2% to QAR 246.0m (H1 2013: QAR 206.3m)
• Net profit1 up 30.6% to QAR 169.9m (H1 2013: QAR 130.1m)
• Net profit margins2 of 14.5% (H1 2013: 12.8%)
• Reported earnings per share up 22.7% at QAR 0.27 (H1 2013: QAR 0.223)
• Net investment in capital expenditure of QAR 38.7m (H1 2013: QAR 81.9m), the majority of which was driven by Advanced Pipes and Casts Company and Aamal Readymix’s upgrade of its fleet.
• Financial gearing4 of to 7.01% (31 December 2013: 6.6%)
H.E. Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal Company QSC, commented, “I am pleased to report outstanding H1 results, with net profit growing by 30.6% and total revenue growing by 14.2% compared with the corresponding period in 2013. This highly impressive growth is evident in almost all of Aamal’s divisions, complemented by a 22.7% rise in EPS. Aamal’s continued profitable results and sustainable growth helps us to reinforce our leading market position and allows us to capitalise on the opportunities that arise. I am delighted by our achievements and the future is very promising.”
Revenues for the Industrial Manufacturing division increased by 8.6% during the first six months of the year compared to the corresponding period in 2013, led by an increase in sales for Senyar Industries, Aamal Cement and Ci-San Trading.
The first half of 2014 has also seen an exceptional increase in the division’s net profit, which increased by 6400.8% compared to the corresponding period of 2013. This remarkable performance is attributable to the organic growth of Senyar Industries, Aamal Ready mix and Ci-San Trading and reduction in price competition which led to net margins increasing by 400 basis points to 2.6%.
The construction of the 85,000m2 Advanced Pipes & Casts Company plant at Mesaieed is completed and we are waiting to obtain the final completion certificate to commence commercial production.
Revenue for the Trading and Distribution division increased by 27%, and net profit margins decreased marginally by 90 basis points to 14.3%: Aamal Medical, Aamal Trading and Distribution and Good Life Chemist each recorded a net profit increase due to improvements in their sales mix, new product offerings and increased market penetration.
Revenues for the Property division increased slightly by 4.7%, driven by the City Center Doha shopping mall and Aamal Real Estate following recent property renovations and upgrades.
Net profit margins decreased by 320 basis points to 77.0% following non-renewal of a few contracts in City Center related to pre-preparation for renovation.
Occupancy at City Center Doha and Aamal Real Estate continued to be high at 95%, with 5% held back as a strategic reserve to allow for active management.
There were no fair value gains on investment properties during the period (H1 2014: nil).
Revenues for the Managed Services division dropped by (11.4)% for the six month period compared with the corresponding period in 2013; however; this decline was offset by a 146.2% increase in net profit attributed to the very positive performance of Johnson Controls, Aamal Travel and ECCO Gulf. The division’s net profit margins increased by 850 basis points to 13.3%.
H.E. Sheikh Mohamed Bin Faisal Al Thani, Vice-Chairman of Aamal, commented, “We have continued our strong performance during the second quarter of the year and achieved remarkable growth over last year. I am proud to report that all Aamal’s divisions have performed robustly. Aamal continues to enjoy strong profitability and cash generation, which will allow us to build on what we have achieved.”
Tarek M. El Sayed, Managing Director of Aamal, commented, “Aamal has proved its capability to achieve growth on two levels: organic growth through expanding its product offerings, enhancing its sales mix and cost control; and growth through establishing new ventures and partnering with industry leaders. Our diversified approach allows us to benefit from the Qatar growth story and I am glad to see that it is paying off and we are witnessing growth in all sectors. Aamal is the partner of choice, managed by dedicated and experienced professionals who will continue to lead the Company forward and ensure future growth for all stakeholders.”
Overview of Aamal
Aamal Company is one of the GCC’s fastest growing diversified conglomerates, delivering a compound annual growth rate in net profit before fair value gains on investment properties in excess of 15% from 2006-2013 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.
Arwa Goussous, Corporate Communications Manager
(mobile # +974 5513 9539)