Aamal revenue rises 1% to QR1.3 billion for 2020
Aamal board of directors recommends cash divided of QR0.04 per share to shareholders
AAMAL Company, one of the Gulf region’s leading diversified companies, on Tuesday announced that the company’s total revenue increased 1 percent to QR1. 0 billion in 2020 compared to QR1.29 billion in the previous year.
The increase in revenue was driven by increased revenue in the company’s industrial manufacturing and trading and distribution segments and demonstrated the resilience of Aamal’s business model in an exceptionally challenging environment, the company said in a statement.
The company’s gross profit was down 21. percent to QR 1 million compared to QR million in the
previous year. Net profit before share of net profits of associates and joint ventures, accounted for using the equity method and fair value gains losses on investment properties (net underlying profit), was down 2 . percent to QR192.9 million in 2020 compared to QR2 9.9 million in the previous year.
Net underlying profit margins decreased by . percentage points to 1 . percent, while share of net profits from associates and joint ventures accounted for using the equity method decreased 19 percent to QR 0. million in 2020 from QAR 2. million
in 2019.
The company witnessed fair value losses on investment properties of QR121. million in 2020, while there were no fair value gains or losses on investment properties in 2019.
The company’s total net profit was down 2.2 percent to QR121.7 million in 2020 compared to QR 22.1 million in 2019 with net profit attributable to Aamal equity holders down 1.7 percent to QR12 . million compared to QR 22. million in 2019.
The company’s reported earnings per share decreased by 1.7 percent to QR0.02 in 2020 compared to QR0.0 in the previous year.
Net capital expenditure was down 11.9 percent to QR 2. million in 2020 compared to QR . million in the previous year.
Commenting on the results, Aamal Chairman Sheikh Faisal Bin Qassim Al Thani said, “In the face of unprecedented challenges globally due to the COVID-19 pandemic, I am hugely proud of Aamal Company’s response at every level during 2020. Our employees responded magnificently to the new ways of working, our subsidiaries played their part in supporting local communities through the pandemic and our diversified business model again demonstrated its resilience and value to our overall performance, delivering year-on-year revenue growth despite the pandemic.”
“Aamal’s financial results for the year, and in particular the performance of our property segment was impacted
by a drop in property valuations and by our decision to waive rents for tenants at both City Center Doha and Souk Al Harraj. Despite the financial impact, this was absolutely the right decision to take, one that was driven by our desire to support the economy in these challenging times and, in particular, to support our tenants who we have always regarded as partners,” Sheikh Faisal said.
“Aamal’s financial strength and resilient business model enabled us to continue to perform well at an operational level across our Industrial Manufacturing, Property, and Trading and Distribution segments. Highlights included the completion of the redevelopment work at City Center Doha, the start of production at Senyar Drums
Factory, the first specialised cable drum manufacturer in Qatar, investment for a new Glass Reinforced Pipe (GRP) production line at Advanced Pipes and Casts, and the expansion of the Ebn Sina Pharmacy chain,”
he said. “I am particularly proud of the performances of Ebn Sina Medical and Aamal Medical, both of which acted promptly and with enormous professionalism to support Qatar’s public healthcare sector in addressing the challenges of the pandemic and a shortage of medical supplies. This is a great example of how the private and public sectors can successfully work together to overcome even the most difficult conditions. Aamal continues to support the community and has been proud to sign an agreement with the Qatar Cancer Society,” he said.
“During 2020, the health and safety of our employees, partners and all our stakeholders have, of course, been our absolute priority. On behalf of the Board of Directors, I would like to thank all our employees for their hard work and exibility which has ensured that, in exceptionally challenging circumstances, the quality of services provided across the Group has remained as high as ever. Although the pandemic means that these remain uncertain times, Aamal will continue to capitalise on the opportunities generated by the government’s strategy to prioritize public spending and the many opportunities provided by the Qatar National Vision 20 0, leveraging our position as a leading participant across a number of key economic sectors. Aamal’s board of directors is pleased to recommend for approval of cash dividend of percent for 2020. We remain confident in the outlook for Aamal Company and in our ability to deliver for all our stakeholders,” Sheikh Faisal said.
Aamal Chief Executive Officer and Managing Director Sheikh Mohamed Bin Faisal Al Thani said, “In an exceptionally challenging year, Aamal’s strong performance was underpinned by our financial strength, by our diversified business model that provides resilience, and by our excellent leadership team which performed admirably in such demanding circumstances, both at Group level and across our subsidiaries.”
“Two major milestones during 2020 were particularly noteworthy the completion of phase two of the redevelopment of City Center Doha; and Aamal Cables for Trading and Contracting winning a QR 9 million three-year contract with Kahramaa. 2020 also saw Aamal’s local, regional, and international investment profile boosted by the Company’s inclusion in both the MSCI Qatar Small Cap Index and in the QSE 20 Index,” Sheikh Mohamed said.
“Creating synergies between our different businesses remains a key part of our growth strategy for example, the start of production at Senyar Drums factory in the third quarter of 2020 will add value to other subsidiaries within our Industrial Manufacturing segment. Elsewhere, key initiatives in 2021 include building upon the strong performances of Ebn Sina Medical and Aamal Medical and expanding into IT healthcare solutions; further enhancing our property portfolio through the continued refurbishment of our residential properties and completing development of the frontage at City Center; and starting commercial production of Advanced Pipes and Casts’ Glass Reinforced Pipe.
“Moving forward, we will continue to evaluate all opportunities that will add value to our businesses and deliver long-term shareholder and stakeholder value,” he said.