Aamal Company Q.P.S.C. (“Aamal”) Financial Results for the year ended 31 December 2024

Doha – the Board of Directors of Aamal Company Q.P.S.C. (“Aamal”), one of the region’s leading diversified companies, today announces financial results for the year ended 31 December 2024.

Financial Highlights

• Total Revenue up 1.1% to QAR 2,100.8m (2023: QAR 2,077.2m)
• Gross Profit up 3.2% to QAR 515.4m (2023: QAR 499.6m)

• Net Profit attributable to Aamal equity holders up 17.7% to QAR 432.5m (2023: QAR 367.5m)

• Reported earnings per share increased 17.7% to QAR 0.069 (2023: QAR 0.058)
• Net capital expenditure up 10.8% to QAR 39.5m (2023: QAR 35.7m)
• Gearing increased marginally to 2.52% (2023: 2.41%)

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

“I am pleased to announce a robust set of results for Aamal in 2024, delivering an impressive 18% rise in year-on-year total net profit as well as a 1.1% increase in total revenue. Throughout the year, we continued to successfully navigate fluctuating market dynamics while remaining agile to new opportunities and challenges, recording solid performances across our segments, in particular Industrial Manufacturing and Managed Services. These results are a testament to the resilience of Aamal’s diversified business model, the adept leadership of our management teams, as well as our sustained strategic focus on optimising operational efficiency and targeted investment into new high growth areas.

“Looking ahead, I am confident that Aamal’s healthy balance sheet and leading positioning across many key sectors places the company on a strong footing to capitalise on numerous growth opportunities in Qatar and the wider region. Building on this strong set of results, we remain steadfast in expanding and enhancing our diverse portfolio while contributing meaningfully to the National Vision 2030 and growth of the Qatari economy. I would like to take this opportunity to express my sincere gratitude to our employees and board members for their talent and unwavering commitment. In light of this pleasing performance, I would like to propose an 6% dividend to be approved by the AGM, scheduled to take place on March 25, 2025.”

Vice Chairman and Managing Director Sheikh Mohamed bin Faisal Al Thani added 

“Aamal’s ability to achieve positive performance is a testament to our disciplined approach in navigating market fluctuations. Throughout the year we have remained dedicated to enhancing operational performance, driving innovation, and capitalising on promising opportunities in both Qatar and the wider region. Our continued investments into existing and new markets underscore our confidence in Qatar’s long-term growth potential, as the country continues to work toward the National Vision 2030.

Aligned with Qatar’s Third National Development Strategy, which emphasises economic diversification, private sector empowerment, and sustainability, Aamal remains committed to driving growth across key industries. Looking ahead, we aim to support Qatar’s economic progress and societal development by expanding our footprint in both local and regional markets, reinforcing our position as a leading diversified company.”

BREAKDOWN BY SEGMENT

REVENUE

NET PROFIT

SEGMENTAL REVIEW

INDUSTRIAL MANUFACTURING

Aamal’s Industrial Manufacturing delivered a strong performance for 2024 recording a 38.1% increase in net profit for the year to QAR 61.8 million, despite a 52.0% decrease in revenue to QAR 189.1 million, due primarily to the completion of the Aamal Cables contract from 2023.

The mobilisation of new construction projects in 2024 saw new contract wins and a raise to revenue growth for both Aamal Readymix and Aamal Cement, both of which reported an increase in total revenue, with Aamal Cement seeing a notable increase in projects being mobilised in Q4 2024. The existence of significant GP margin pressure, stemming from a change in product specifications and ongoing price competition, led to a decrease in profitability for Aamal Cement. Conversely, improved GP margins saw Aamal Readymix return to profitability and the business also commissioned a large-scale concrete recycling plant with capacity to recycle all concrete waste produced during factory operations. The business is also aiming to secure 30-40% of future volumes from government infrastructure projects, supporting national growth initiatives.

Throughout 2024, Senyar Industries recorded improved profit benefiting from higher sales volumes generated by the Kaharama and north field projects. Elsewedy Cables’ success in securing major contracts, each valued at over QAR 1bn, and Doha Cables’ recognition as one of the top exporters by QDB “Tasdeer”, achieving QAR 225 million of export sales in 2024, further solidified Aamal’s leadership in this market. To meet increasing demand in the transmission sector, Doha Cables is also investing in new CCV line machinery at its Mesaieed facility. This upgrade will expand production capabilities from 132kV to 400kV cables, ensuring the company can serve the evolving needs of the transmission industry. The new facility is expected to be operational by Q4 2025.

Ci-San also experienced a more positive demand environment characterised by higher shipping rates and stable charter occupancy, as well as a gain from Um El Hanaya disposal, which lead to a significant increase in net profit.

Frijins Middle East was also able to deliver profitability growth in 2024 despite intense price competition. In response to market challenges, the business undertook multiple initiatives to meet the needs of industrial contractors with broader portfolios while maintaining its reputation as a high-end, reliable supplier. This included the extension of its portfolio into piping and spooling services, as well as undertaking projects outside of Qatar. Aamal’s acquisition of additional shares in Frijins, announced in Q4 2024, underscores our continued confidence in its future growth prospects.

Looking forward, the outlook for Industrial Manufacturing remains positive due to the successful awarding of major new contracts, such as the most recent El Sewedy Cables project with Kaharama (valued at QAR 1 billion). The strategic acquisitions of Advanced Pipes and Casts (APC) and Ci-San were also positive developments which have provided Aamal with enhanced exposure to the notable growth potential of these businesses.

TRADING AND DISTRIBUTION

In 2024, the Trading and Distribution segment recorded revenue of QAR 1,484.4 million, up 12.5% from 2023 and driven primarily by the strong performance of Ebn Sina Medical and Aamal Trading and Distribution, although a decrease in margins and revenue at Aamal Medical saw a 10% year-on-year reduction in overall net profit to QAR 116.7 million.

Throughout the year, Ebn Sina Medical continued to deliver strong organic revenue growth, in line with new revenue targets following the business module change. The business extended its market leading position through renewing many of its existing contracts and signing new distribution agreements, while also registering several new pharmaceutical drugs. Ebn Sina Medical is constructing two new warehouses in Manateq to support growth and future operations. The registering and supplying of an innovative new cancer drug, and Gene Therapy treatment for Duchenne muscular dystrophy, were particularly noteworthy developments reflecting Ebn Sina Medical’s commitment to providing the Qatari market with world-leading healthcare solutions.

Aamal Trading and Distribution also performed well despite market challenges stemming from project and shipping delays. The business strengthened its market position through the application of successful sell out promotions and price increases on renewed service contracts, achieving a 49% and 25% market share in truck and tier 1 passenger car tyres respectively. This saw robust growth in both revenue and net profit with the company also working to expand its product offering and increase market penetration by improving after-sales support through a new digital concept, “Toolbox”.

Aamal Medical recorded a subdued performance in 2024, with a decline in revenue and net profit following delivery delays due to end markets not being ready to accept current supplies.  Nevertheless, the business has successfully signed several strategic partnerships, including with Austo Healthcare, Health O Meter, and Gleamer, which are helping to modernise patient care in Qatar through AI-driven solutions and radiology innovations.

PROPERTY

The performance of Aamal Property was largely flat throughout 2024 with marginal growth in year-on-year revenue of 3.1% to QAR 328.3 million, and a 2.2% decline in net profit to QAR 250.5 million.

City Center Doha continued to see robust revenue growth owing to strong leasing and occupancy rates with the addition of new tenants and periodic increases in the financial terms of existing leases. This was offset however by an increase in impairment provision and utility costs which lead to a marginal drop in net profit. Among the noteworthy developments for the year was the opening of the Metro bridge, which aims to further enhance foot traffic and increase accessibility. In 2024, City Center also welcomed over 30 new shops and kiosks totalling to over four thousand sqm (<4000 sqm) of leasable space. This further enhanced the retail experience while the addition of tenants including Sephora, Letoile and Steve Madden underscores the property’s sustained attractiveness amongst leading global brands.

Ongoing renovations at Aamal Real Estate contributed to a drop in the occupancy rate which produced a corresponding slight reduction in revenue and net profit. Aamal is confident however that this work will further enhance the attractiveness of our portfolio helping to maintain high occupancy rates and rental fees once completed, with plans for full tenancy at Madinat Khalifa and Al Nasr by Q1 2025.

Aamal’s property portfolio remains highly attractive for tenants looking for rental solutions in prime locations across Qatar and continues to be enhanced through targeted investment into quality upgrades helping to guarantee its leading market position into the future.

MANAGED SERVICES

Aamal’s Managed Services segment recorded an excellent performance in 2024 with total revenue rising 55.4% to QAR 162.1 million, and net profit increasing 55% to QAR 20million.

These results were driven largely by the increased revenue stemming from Maintenance and Management Solutions (MMS). Benefiting from targeted expansion initiatives, MMS was able to successfully extend major contracts while winning new business across diverse sectors including hospitality, banking, construction, and government. The business has also invested in employing and setting up its own fit-out team in preparation to capture strong demand in the region.

Aamal Services was also able to realise increased revenue and net profit benefiting from the partnership with MMS and new contract wins in Q3 2023 to early 2024.

ECCO Gulf faced notable challenges with revenue pressure from competition, as well as inflation and increased labor costs. The business is reacting to these challenges through expanding into insurance and education sectors and securing major contracts in banking, energy and Information Technology. Moving into 2025, the business remains focused on cost optimisation, service quality enhancements, new industry targeting, and training programs.

In 2024, Aamal Travel expanded its services to include international visa assistance and budget holiday packages. Despite challenges from airlines and hotels bypassing intermediaries, market stabilization is anticipated for 2025 due to an improving geopolitical landscape and increased inbound tourism. Aamal Travel aims to acquire new corporate clients and expand inbound packages, leveraging its Qatar Tourism affiliation for growth.

SUMMARY AND OUTLOOK

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

“This strong set of results for 2024 reaffirms the strength of Aamal’s diversified business model and growth strategy. Coupled with the sustained focus on innovation and operational excellence, I am pleased to see this once again guide Aamal through a highly dynamic market and continue delivering shareholder value.”

“In Industrial Manufacturing, I am proud to see Aamal’s ongoing contribution to major national energy and construction projects, including Senyar Industries’ contracts related to North Field and Kaharama projects. Elsewedy Cables’ success in securing major contracts, each valued at over QAR 1bn, is also a testament to our growing presence in the cables sector, while the recognition of Doha Cables as one of the top exporters by QDB “Tasdeer”, further solidifies our leadership in the industry. Elsewhere, Aamal Readymix recorded an improved performance owing to recovering demand from the region’s construction industry.

“In the Trading and Distribution segment, Ebn Sina Medical further extended its market leading position through signing new distribution agreements and registering new pharmaceutical drugs. In particular, the registering and supplying of an innovative new cancer drug, and Gene Therapy treatment for Duchenne muscular dystrophy, highlighted Aamal’s wider commitment to supporting the health of Qatari society through the provision of the highest quality healthcare technologies and pharmaceuticals. The strong performance of Aamal Trading was also noteworthy, and I look forward to seeing the roll-out of its new digital concept, “Toolbox”.

“Our Property segment achieved marginal growth in revenues, primarily due to periodic lease adjustments and the addition of new tenants at City Center. Both Aamal Real Estate and City Center Doha maintained high occupancy rates, driven by strong and steady demand for our residential and commercial spaces. Following successful upgrades carries out in 2024, such as the City Center metro bridge, we will continue to invest in our property portfolio through ongoing refurbishment and enhancement.

“Our Managed Services segment reported particularly positive results and the integration of MMS under Aamal Services continued to have a positive impact on the segment. The winning of new business contracts across diverse sectors including hospitality, banking, construction, and government, as well as the development of MMS’ own fit-out team to capture strong demand in the region, were encouraging developments and signal the continued growth potential of this segment into the future.

“Looking ahead, Qatar anticipates robust economic growth in 2025 and beyond, and progress toward the Qatar National Vision remains a major source of growth opportunities across all Aamal’s key sectors. Our strong balance sheet and the targeted growth initiatives carried out in 2024, including the acquisition of Ci-San and APC, position Aamal very well to continue delivering value for all its stakeholders”

CONFERENCE CALL DETAILS

A conference call to discuss the results will be held on Wednesday 26 February 2025 at 2.00pm Doha time. The details for the conference call are as follows:

ABOUT AAMAL COMPANY Q.P.S.C.

Aamal is one of the Gulf region’s most diversified conglomerates and has been listed on the Qatar Stock Exchange since December 2007.  As at 24 February 2025, the Company had a market capitalisation of QAR 5.6bn (US$1.5m).

Aamal’s operations are widely diversified and comprise 32 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.