- Aamal’s net profit for the first nine months of 2024 rose by 13.9% to QR302.4 million, with gross profit increasing by 9% and revenues up 3.2%.
- Earnings per share also increased by 13.9%, reaching QR0.048, while net capital expenditure rose by QR11.4 million to QR30 million.
- Strong performance in sectors such as Property, Industrial Manufacturing, and Managed Services, with Senyar Industries and Aamal Readymix being key contributors.
- El Sewedy Cables Qatar secured a three-year contract worth over QAR 1 billion from Kahramaa for key infrastructure projects.
Aamal Company has posted impressive financial results for the nine months ending on September 30, 2024, showcasing solid growth and resilience across its operations. The company reported a net profit of QR302.4 million, reflecting a 13.9% increase from the QR265.4 million it earned during the same period in 2023. This positive outcome highlights the company’s ability to adapt and thrive in a dynamic economic environment.
Growth Across Key Financial Metrics
Aamal’s overall financial performance during the first three quarters of 2024 has been robust. The company’s gross profit surged by 9% to QR392.4 million, driven by increased revenue, which rose 3.2% to reach QR1,598.2 million.
Additionally, earnings per share climbed by 13.9% to QR0.048, further underscoring the company’s upward trajectory. In terms of capital expenditure, Aamal increased its investments by QR11.4 million, bringing the total to QR30 million. Meanwhile, gearing – a measure of financial leverage – decreased to 0.74%, signaling a healthier balance sheet.
Resilience Through Diversification
According to Sheikh Mohamed bin Faisal Al Thani, Vice Chairman and Managing Director of Aamal, the company’s diversified business model continues to be the foundation of its success.
He pointed out that the 3.2% year-on-year revenue growth and 13.9% increase in net profit are clear indicators of the company’s resilience and ability to adapt. Aamal’s diversified portfolio spans various sectors, allowing it to capitalize on growth opportunities across Qatar’s dynamic economy.
Sheikh Mohamed emphasized that Aamal’s strong performance was not limited to a single segment but was seen across most areas of its business. The Property, Industrial Manufacturing, and Managed Services sectors all contributed to the company’s solid results.
He highlighted the Industrial Manufacturing segment in particular, with key players like Senyar Industries and Aamal Readymix driving growth. Senyar Industries, in particular, benefited from increased revenue volumes from the Kahramaa project, a significant contributor to the segment’s overall success.
Challenges in the Trading and Distribution Segment
However, despite the overall positive performance, Aamal’s Trading and Distribution segment faced some challenges. A slight decline in net profit was recorded, primarily due to delays in deliveries and the renewal of service contracts for Aamal Medical.
Despite this setback, there were bright spots within the segment, with subsidiaries like Ebn Sina Medical and Aamal Trading and Distribution continuing to perform well, offsetting some of the negative impacts.
Looking ahead, Aamal is optimistic about its prospects for 2025. Sheikh Mohamed expressed confidence in the company’s ability to build on its successes, stating that Aamal is well-positioned to continue delivering value for its stakeholders.
He believes that the company’s strategic initiatives and diverse business operations will enable it to maintain its growth momentum in the coming year.
Strategic Initiatives and Acquisitions
Rashid bin Ali Al Mansoori, CEO of Aamal, attributed the company’s strong performance to the successful implementation of several strategic initiatives aimed at enhancing core operations. He noted that these initiatives have supported both organic growth and the acquisition of complementary businesses, creating new revenue streams.
One notable example is the company’s investments in its Property segment, which have led to continued high demand for Aamal’s properties. Additionally, the acquisition of Maintenance Managed Solutions has further solidified Aamal’s position in the Managed Services sector.
Key Contracts and Industry Recognition
The company’s achievements in Industrial Manufacturing were particularly noteworthy. El Sewedy Cables Qatar, a key part of Aamal’s operations, secured a three-year contract worth over QR1 billion from Qatar General Electricity & Water Corporation (Kahramaa).
This contract involves the supply of engineering, procurement, and construction services, including the installation of 132kV power cables for strategic projects. This major win reflects Aamal’s ability to secure high-value projects and reinforces its standing in the industrial sector.
Moreover, Aamal received industry recognition for its manufacturing capabilities. Doha Cables, a subsidiary, was acknowledged by Qatar Development Bank as a leading exporter, further enhancing Aamal’s reputation in the market. This recognition highlights the company’s ability to expand its market reach, both domestically and internationally.
Future Growth Opportunities
Aamal is also actively exploring new growth opportunities. One such opportunity is the potential acquisition of Advanced Pipes and Casts Company, which could further strengthen the company’s position in the industrial manufacturing sector.
The Property segment is also expected to benefit from the recent opening of a direct bridge between the DECC metro station and the second floor of City Center Doha, making the location more accessible and attractive to tenants and customers.
Commitment to Long-Term Value Creation
As Aamal looks to the future, the company remains focused on identifying and capitalizing on business opportunities that will create long-term shareholder value.
Rashid bin Ali Al Mansoori emphasized that Aamal is committed to maximizing its potential and delivering sustainable growth for its investors. The company’s strategic approach, combined with its diversified business model, positions it well to navigate future challenges and seize emerging opportunities.
Altogether, Aamal’s performance in 2024 has been a testament to its resilience, strategic foresight, and ability to thrive in Qatar’s rapidly evolving economy. The company’s focus on diversification, strategic investments, and long-term growth initiatives has allowed it to deliver impressive financial results and set the stage for continued success in the years to come.
