Aamal 9-month profit rises 6 percent to QR176.3mn

Aamal Company has reported a 6% growth in net profit to QR176.3mn in the first nine months of this year. Highlighting that the underlying net profit margin improved to 12.7% compared to 10.6% in the previous year period, a company spokesman said the improving trend reflects the growing focus within the sales mix towards industrial manufacturing activities. Although such activities tend to have lower gross margins, the associated higher volumes are now starting to more than compensate, thereby capturing the benefits of operational gearing, according to him. Revenue witnessed a buoyant 27% expansion to QR1.67bn, driven by continuing underlying top-line growth and first-time contributions from new branches in the industrial manufacturing and managed services divisions. Each of the divisions has increased revenues and generated strong, double-digit profit growth, with ‘attributable’ net profit increasing by almost 15% for the first nine months of the year and almost 38% for the third quarter along with an expansion in the group margin, Aamal chairman Sheikh Faisal bin Qassim al-Thani said. “Together with strong, additional contributions from our latest ventures, I look forward to this positive trend continuing over the remainder of 2012,” he added. The company has “prioritised” expansion in industrial manufacturing and related managed services as it diversifies into selected markets and segments with significant potential for long-term growth and returns, Aamal deputy chairman Sheikh Mohamed bin Faisal al-Thani said. “This strategy has again delivered another solid quarter of profitable growth and positions us strongly to further grow our share of our chosen markets over the fourth quarter and into 2013 as consumer demand for products and services of the highest quality continues to evolve in line with the rapid expansion and diversification of the Qatari economy,” he said. The company reported fair value gains on investment properties of QR45.3mm (against QR29mn in year-ago period), reflecting the continuing expansion of City Center Doha and new land purchased during the year. The capital expenditure amounted to QR193.6mn (QR59.1mn) with low financial gearing of 10.6% at the end of September 30, 2012.