Aamal Company (Aamal) Announces Financial Results for First Half of 2019

Doha, July 30 (QNA) - Aamal Company (Aamal) announced its financial results for the six months ended 30 June 2019. The statement showed that the net profit is QR 181.85 million compared to net profit amounting to QR 228.85 million for the same period of the previous year. Earnings per Share (EPS) amounted to QR 0.03 for the period ended June 30, 2019 compared to an EPS of QR 0.04 for the same period of the previous year. The Group revenue down 2.6% to QR 636.1m for the period ended June 30, 2019 compared to QR 652.7m in H1 2018. Gross profit was QR 226.2m for the period ended June 30, 2019 as compared to QR 243.2m for the same period of the previous year. HE Chairman of Aamal Sheikh Faisal Bin Qassim Al-Thani commented: "The first half of 2019 has been one of strategic development and evolution in an increasingly competitive environment. While many of Aamal Company's businesses have continued to perform strongly, this has not been enough to offset the fall in our financial results reported in other areas. However, we firmly believe that Aamal's diversified business model continues to offer both resilience to our external environment and an ongoing pipeline of growth opportunities which we will continue to access throughout the second half of the year. HE Chairman of Aamal pointed to the number of strategic initiatives implemented across Aamal Company during the first six months of 2019. "For example, Ebn Sina Medical has entered into agreements with new strategic partners to significantly broaden and enhance its offering and its new robot pharmacy is now fully open and performing in line with expectations. In the Industrial Manufacturing segment, work is progressing well with previously announced industrial projects for the production of drums and copper rods, driving synergy creation and a reduction in production costs among the subsidiaries of Senyar Industries. In addition, Aamal is actively evaluating other strategic and value enhancing industrial projects to expand its industrial business. In Aamal's Property segment, despite mounting competition and reduced market rents, we are witnessing a steady rise in demand for property in the residential sector. "Looking ahead, in addition to pursuing growth opportunities presented by the Qatar National Vision 2030, we will look to further strengthen the financial base of Aamal's existing businesses. For example, a number of cost control measures are being implemented at Aamal Readymix and we have now formally announced a new sales strategy for Aamal Services to expand the client base and reduce financial risk." His Excellency added that on 24 June 2019, Aamal implemented the previously announced 10 for 1 stock split in compliance with the stock split directive issued by the Qatar Financial Market Authority. "This market-wide initiative should make trading in Aamal shares more accessible and attractive to retail investors while improving liquidity and trading volumes. Aamal shareholders do not need to take any action because of the stock split and it will not affect the proportionate ownership of existing shareholders." HE Chief Executive Officer and Managing Director of Aamal Sheikh Mohamed Bin Faisal Al-Thani commented: "While the first half of the year has been challenging for Aamal Company, it has meant we have focused on operating as efficiently, innovatively and competitively as possible. "Aamal Company's overall strategy remains clear. The Company seeks to take advantage of the growth opportunities provided by the Qatar National Vision 2030 and to leverage its position as a leading participant across various key economic sectors. This growth strategy remains unchanged and we believe that through a combination of our efforts to improve the financial strength of certain existing businesses and our agility to capitalize on new business opportunities in the market, we remain well-positioned to deliver long-term shareholder value. Specifically. we are currently exploring a number of new investment opportunities within the Industrial Manufacturing segment which will be announced in due course if judged to be efficient and to add value to our business model." Aamal is one of the Gulf region's fastest growing diversified conglomerates and has been listed on the Qatar Stock Exchange since December 2007. As at 29 July 2019, the Company had a market capitalization of QR 5bn (US$ 1.4bn). Aamal's operations are widely diversified and comprise 26 active business units (subsidiaries and joint ventures) with market leading positions in the key industrial, retail, property, managed services, and medical equipment and pharmaceutical sectors, thereby offering investors a high quality and balanced exposure to Qatar's wider economic growth and development. Aamal is focused on self-financed and profitable growth, delivering an average increase in underlying profits in excess of 11.1% (i.e. before fair value gains on investment properties) over the twelve years to end-2018. (QNA)