Posted on April 30, 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

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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.”