the Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the Gulf region’s leading diversified companies, today announces financial results for the year ended 31 December 2022.

Financial Highlights

• Total revenue up 29.2% to QAR 2,058.9m (2021: QAR 1,594.1m)
• Gross profit up 13.9% to QAR 484.7m (2021: QAR 425.5m)
• Net profit attributable to Aamal equity holders up 14.1% to QAR 347.8m (2021: QAR 304.9m)
• Reported earnings per share increased 14.1% to QAR 0.06 (2021: QAR 0.05)
• Net capital expenditure down 27.5% to QAR 48.3m (2021: QAR 66.6m)
• Gearing was even lower at 2.04% (2021: 4.54%)

Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal, commented:

“2022 was a year of growth and recovery for Aamal and the Board is pleased to report a strong set of financial results, with double digit growth in revenue and net profit. Year after year, Aamal’s diversified strategy and solid financial position allows it to take advantage of opportunities as they arise across different economic sectors and provides its balance sheet with impressive financial resilience.  I am especially proud of our business units’ ability to be nimble and innovative in an ever-changing market environment and to contribute to the Company’s impressive levels of organic growth, all under the stewardship of our talented leadership team. 

“Aamal’s Board of Directors is pleased to recommend a 2022 cash dividend of 5% (QAR 0.05 a share) for approval at Aamal’s Annual General Assembly Meeting which will take place on 7 March 2023.  

“We are blessed to be operating in Qatar, a country that is blessed with a wealth of natural resources, stability and security while being so effectively led by the government and HH The Emir Sheikh Tamim bin Hamad Al Thani. I am proud of the contribution that Aamal has made over the years to the sustained development of the Qatari economy, and I am excited by the opportunities for growth as we look to 2023 and beyond. The unprecedented success of the FIFA World Cup in Qatar provided a significant economic boost to the country and raised Qatar’s international profile and investor confidence.  We expect this to create many business opportunities which, alongside all the opportunities generated by the Qatar National Vision 2030, we look forward to maximising as we strive to deliver sustainable growth and profitability, enhancing value for all our stakeholders.”

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BREAKDOWN BY SEGMENT

(Notes: there may be differences due to rounding)

REVENUE

NET PROFIT

SEGMENTAL REVIEW 

(Note: There may be slight differences due to rounding)

INDUSTRIAL MANUFACTURING 

Industrial Manufacturing revenue increased 19.9% year-on-year to QAR 517.6 million, while net profit increased 16.6% to QAR 66.0 million. 

This strong performance was mainly driven by Doha Cables, which significantly expanded its export business and signed several significant new contracts including a contract to supply high-voltage cables to the North Field East LNG facilities, the world’s largest LNG project, and a contract to supply overhead transmission line conductors and smart meters to Kahramaa. Doha Cable also supplied cables to all the eight stadiums used for FIFA World Cup.

Aamal Readymix continued to face challenges, with the ongoing price war in the industry and the freeze on construction activity due to the World Cup impacting revenues. However, despite the challenging market backdrop, Aamal Readymix successfully supplied a number of high-profile projects throughout the year, including Abu Hamour Shopping Village and the Al Kharshaa Solar Plant. 

Aamal Cement Industries’ performed well, seeing increased demand for its products as a result of the FIFA World Cup, as well as introducing a number of new products and continuing to drive efficiencies across its operations. 

Ci-San Trading saw a decrease in revenue due to lower sales at Aamal Maritime Transportation, which was impacted by a decrease in global shipping rates after the pandemic, and reduced sales at Gulf Rocks following the completion of several major projects.  

 Aamal’s JV, Frijns Structural Steel reported an increase in profits as it expanded capacity to meet increasing demand in the energy market. In response to the evolving market backdrop, Frijns continues to develop its product portfolio and expand outside its core sectors to ensure it is always in line with the latest trends.

The outlook for the Industrial Manufacturing segment in 2023 and beyond is positive, with new projects being commissioned, including the North Field expansion project, the expansion of new ports and transportation networks and the development of new cities. In addition, Elsewedy Cables has been awarded a new contract worthQAR1.2bn for the establishment of new underground Extra High Voltage / High Voltage Cables (EHV/HV).

TRADING AND DISTRIBUTION 

Revenue in the Trading and Distribution segment increased by 33.5% year-on-year to QAR 1,172.7 million, while net profit increased 4.8% year-on-year to QAR 110.1 million. 

Throughout 2022, Aamal Medical continued to focus on developing its healthcare technology offering, securing a number of important new contacts and partnerships. It signed a new distribution agreement with CEIBA Healthcare, a leading provider of medical device integration and solutions. Tiga Information Technologies Qatar (a subsidiary of Ebn Sina Medical) was awarded a five-year contract worth QAR 320m to provide IT solutions to the healthcare sector in Qatar. 

Ebn Sina Medical performed very strongly, driven by high demand for healthcare services around the FIFA World Cup, the signing of new distribution agreements to expand the product range, and the introduction of the first fully automated warehouse in Qatar which utilises a robotics system to enable more efficient and accurate delivery. Ebn Sina Pharmacy continued to expand its footprint, opening its fifth store located in City Center Doha. There is a significant market opportunity for Ebn Sina Medical, particularly in the areas of oncology, rare diseases and genetic disorders. As such, Ebn Sina Medical is focused on capitalising on new business acquisitions and product development in these fields.  

Aamal Trading and Distribution saw improved performance in 2022, as the product offering was expanded with the launch of two new tyre brands (Fulda and Veltour), which were positively received by customers. Bridgestone Tyres reported increased demand following a promotional and marketing campaigns during the year. 

PROPERTY 

Property segment revenue increased 14.7% year-on-year to QAR 301.2 million, while net profit rose 13.4% to QAR 224.1 million, reflecting new store openings and normalised income levels at City Center Doha, as well as increased occupancy levels at Aamal Real Estate. 

City Center Doha successfully opened more than 50 new shops and signed 44 new lease contracts in 2022. Work on the western exterior façade has now completed, offering customers an attractive new destination with a range of food and beverage outlets. It welcomed record footfall during the World Cup, providing a hub for fans with its central location, attractive mix of shops and restaurants, and easy accessibility. 

In 2023 the focus at City Center will be on expanding the tenant mix and on a number of expected new store openings, including a new electronics store and an upmarket supermarket. Work on the eastern exterior façade will be finalised, further increasing the appeal of the Center for its many customers.   

Aamal Real Estate saw the benefits of the building and renovation works carried out across the portfolio as occupancy levels above 90%. 

MANAGED SERVICES 

The Managed Services segment benefitted from increased demand linked to the FIFA World Cup and the gradual easing of Covid-related restrictions. As a result, revenue and net profit increased by 74.1% and 196.5% year-on-year, respectively, highlighting just how significantly the division was impacted by the pandemic in 2021.  

Aamal Services had a very successful year, with revenue and profit almost doubling due to the successful delivery of contracts related to the FIFA World Cup. ECCO Gulf secured new contracts across different sectors to expand its client base and also upgraded its website. Aamal Travel benefitted from the easing of pandemic-related restrictions, as well as increased demand for travel around the FIFA World Cup. While Winter Wonderland remained closed, Fun City performed very well compared to 2021. It continued to develop its offering with new rides and games and upgraded facilities, maintaining its position in an increasingly competitive market.   

SUMMARY AND OUTLOOK

Mr. Rashid bin Ali Al Mansoori, Chief Executive Officer of Aamal, commented:

“I am very proud of Aamal’s achievements in 2022 and the strong set of results reported. This performance reflects Aamal’s continued ability to leverage its resilient and diversified business model to capitalise on opportunities and deliver value for our shareholders. 

“Our Industrial Manufacturing segment saw strong revenue and profit growth, successfully introduced new products and secured a number of high-profile contracts, including for the North Field Expansion Project, the largest LNG project in the world.. Construction began on the Senyar Cast Copper Rod plant, the first of its kind in Qatar, which will produce high quality continuous cast copper rods in line with international standards. This new product development and capacity expansion will create opportunities in 2023 and beyond. As part of its ongoing commitment to sustainability, Doha Cables developed and trade-marked new, lead-free cables ‘ENVIGUARD 65’.

“The Trading and Distribution segment performed very well, continuing to benefit from the focus on digitalisation and technological advancement at Aamal Medical and at Ebn Sina Medical. Tiga Information Technologies Qatar (a subsidiary of Ebn Sina Medical) was awarded a five-year contract worth QAR 320m to provide IT solutions to the healthcare sector in Qatar. Ebn Sina Medical opened the first fully automated warehouse in Qatar, and Ebn Sina Pharmacy continued to expand its footprint. There are significant opportunities in the healthcare sector and we will focus on new business acquisitions and product development to capitalise on these trends.  

“In the Property segment, a normalisation of income levels and occupancy levels resulted in a positive performance across the portfolio. 50 new shops opened at City Center Doha in 2022 and work was completed on the exterior façade. Going into 2023, a number of exciting new store openings are planned to enhance the customer experience at City Center Doha still further.  The Managed Services segment benefitted from the lifting of Covid-related restrictions and increased demand as a result of the FIFA World Cup to deliver significantly increased revenue and profit. On the back of this positive performance, our Managed Services businesses are looking forward to 2023 with confidence.  

“Aamal remains fully committed to our ESG drive and we continued to make progress in this area, supporting initiatives including the Olympic Committee National Team ‘Al Adam’ and the Qatar Cancer Society. Going forward, we will seek new ways to deliver value to our communities and further embed our sustainable business practices.

“These impressive results demonstrate Aamal’s ability to adapt to meet changing market demands. This resilience and our innovative approach will enable us to explore areas of opportunity across both existing and new sectors that will add further value to our business model and deliver growth for our shareholders. In line with our diversified business model, we are actively seeking new opportunities across energy, IT and logistics. We remain focused on investing in our operational efficiency and on investing in our people, our most important asset to drive growth. 

“This is an exciting time for Qatar, with the economy forecast to grow strongly in 2023 and 2024 and the Qatar National Vision set to be a significant driver of the economy and of our country’s development for years to come. The strength of Aamal’s business model and financial position means we are well placed to take advantage of these opportunities to support Qatar’s growth, to benefit all our stakeholders and to deliver long-term value for our shareholders.”