Aamal’s net profit rises 156.3% to QR312 mn in 2021

Aamal Company (Aamal), one of the Gulf region’s leading diversified companies, on Wednesday announced that the company’s total net profit for 2021 increased 156.3 percent to QR312 million with net profit attributable to company’s equity holders going up by 147.3 percent to QR304.9 million.
Company’s total revenue was up 22 percent to QR1,594.1 million compared to QR1,306.8 million in the previous year.
Net profit before share of net profits of associates and joint ventures and fair value gains/losses on investment properties (“net underlying profit”) increased 40.8 percent to QR271.5m million.
Net underlying profit margins increased by 2.3 percentage points to 17 percent and the share of net profits from associates and joint ventures accounted for using the equity method decreased 19.7 percent to QR40.5 million.
Gross profit went up 24.8 percent to QR425.5 million.
There were no fair value gains or losses on investment properties in 2021. There were fair value losses on investment properties of QR121.6 million.
Reported earnings per share increased 147.3 percent to QR0.05. Net capital expenditure was up 56.4 percent to QR66.6 million.
Aamal Chairman Sheikh Faisal bin Qassim Al Thani said, “After the considerable challenges of 2020, the Board of Aamal is pleased to report a strong set of financial results for 2021. Underpinned by Aamal’s clear strategy, sustained financial strength, disciplined cost control, and resilient and diversified business model, all four of our business segments performed well at an operational level and demonstrated the company’s ongoing ability to seize new opportunities as they arise and to adapt swiftly to evolving market demands.”
“Our industrial manufacturing subsidiaries performed very well particularly Ci-San Trading, introducing new products, expanding production and growing the customer base. The results reported by our Trading and Distribution segment were impressive, although marginally down compared to the exceptionally strong performance recorded by the segment in 2020 when demand peaked for healthcare and pharmaceutical products and services in response to the pandemic. It is worth noting that revenue and net profit for this segment are up 10 percent and 6 percent, respectively against 2019. Demonstrating our commitment to innovation and operational excellence, 2021 saw a strong focus on digitalisation, particularly at Ebn Sina Medical and Aamal Medical. This innovative digitalisation has enhanced internal operations and expanded the segment’s range of IT services and products,” he said.
Sheikh Faisal said, “The Property segment’s performance reflects the opening of 50 new shops at City Center Doha, the benefit of renovation works, improved occupancy rates at Aamal Real Estate, and the elimination of negative fair value adjustments made in 2020 at the height of the pandemic restrictions. Finally, our Managed Services segment benefitted from the gradual easing of COVID-related restrictions in 2021 after the near complete closure of its operations in 2020. A particularly strong performance was recorded by Aamal Services following the award of a major contract to provide World Cup-related transportation services. Throughout the year, we maintained our commitment to corporate governance best practice and continued to incorporate environmental, social and governance considerations at the heart of our operations.”
For example, he said, “Doha Cables has started supplying lead-free cables to replace the more hazardous and expensive lead sheath cables currently used, and we launched a new website which is fully accessible to all users regardless of any disability. Our partnership with the Olympic Committee to support Qatar’s Olympic Team further reflects Aamal’s ongoing commitment to our community.”
Aamal’s board has recommend a 2021 cash dividend of 5 percent, QR0.05 a share, for approval at the company’s annual general assembly meeting that will take place on March 28, 2021.