DOHA: Aamal Company, one of the GCC’s fastest growing diversified conglomerates, has reported a group revenue of QR2.88bn for the full year 2015, reflecting a 34.7 percent growth compared to QR2.1bn reported from a year ago. Aamal’s gross profit is up 26.9 percent to QR642m. The company’s underlying profit increased 49.6 percent to QR521.3m on year-on-year.
Commenting on the financial results Sheikh Faisal bin Qassim Al Thani (pictured), Chairman of Aamal Company, said: “Aamal has delivered an exceptional performance in 2015……Beyond what is clearly an excellent set of numbers, is a clear strategy that has allowed us to achieve sustained growth by optimising existing business operations and create new revenue streams. These results demonstrate clearly the resilience of our business model — diversified not just to minimise risk but also positioned to take advantage of structural growth opportunities. This bodes very well for the Company’s future prosperity.”
Net profit for the company’s Industrial Manufacturing division rose by 144.5 percent to QR126.4m, driven by significant revenue growth of over 50 percent and significant margin expansion to 4.8 percent, previously 3.0 percent.
The stand-out performer over the year was Senyar Industries, Doha Cables in particular, winning a number of high profile and profitable contracts as infrastructure project build in Qatar continued apace.
Strong performances were also put in by Aamal Readymix and Ci-San, both also beneficiaries of this continuing investment in infrastructure. Aamal Readymix, focusing on the supply of high grade concrete, far exceeded its production targets and we were honored to receive the “GCC 2015 Annual Business Excellence Award” as a best supplier from one of the leading projects in Qatar in recognition of exceptional service and quality.
Ci-San was bolstered further by the setting-up of a new subsidiary (Aamal Maritime for Transportation Services) in September 2015 to ship consignments of aggregates to Qatar. Net profit for the Trading and Distribution division rose by 28.1 percent to QR147.2m, principally due to a 3.1 percentage point improvement in the net margin to 18.9 percent.
The principal factors behind this significant margin expansion were an expanding product line to fulfill growing market demands alongside the wider geographical coverage of our distribution footprint.
Underlying net profit for the Property division, excluding fair value gains on investment properties, rose by 20.3 percent to QR268.7m year on year, due to a combination of revenue growth of almost 13 percent year on year and significant expansion in the margin to 82.5 percent. This very strong performance was driven by annual rental increases throughout the year, combined with benefits that still continue to accrue from Phase 1 of the redevelopment of the flagship City Center Doha shopping mall. Net profit for the Maaged Services division fell by just over a third to QR5.5m, principally due to a steep decline in margins to 8.0 percent, a reflection of an increasingly competitive environment in this space.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman of Aamal, said: “Aamal has continued to grow and indeed prosper in line with its growth strategy. We occupy a number of market leading positions in a range of sectors across Qatar’s economy that are in various stages of structural, rather than cyclical, growth; furthermore, we are very well capitalised and have the financial strength to continue to pursue suitable opportunities as and when they arise. Recent commencement of Phase 2 of the redevelopment of City Center Doha to consolidate its status as Doha’s premier shopping mall is prime evidence of this.”
Tarek M El Sayed, Managing Director of Aamal, said: “Aamal has performed very well in 2015, with underlying profits rising significantly. What is extremely pleasing is that it has been a very healthy combination of both revenue growth and margin expansion, matched by an equally impressive cash flow. Aamal has extremely low gearing, at just 3.8percent, which positions the business strongly to grow further both organically and through acquisition opportunities which may become available.” The Peninsula
