2020 is considered an exceptional year, due to the Covid-19 pandemic and its consequences, but I am happy to say that in light of these unprecedented challenges that the whole world witnessed, not just Qatar, I am proud of the positive developments that Aamal has been able to achieve at all levels, the most important of which is ensuring the public safety of our employees and all stakeholders. Moreover, how brilliantly the Company responds to new business requirements. Our diversified business model once again this year demonstrated its resilience and value, as the Company achieved revenue growth despite the circumstances.
The results of Aamal Company are evidence of the resilience and strength of the economy of our beloved Country, Qatar, so I would like to take this opportunity to thank our wise government under the leadership of H.H. Sheikh Tamim bin Hamad, Emir of the State of Qatar, for its inspiring leadership during this pandemic and its continuous support to help us overcome the negative effects of the pandemic and provide the best care for citizens and residents.
Thankfully, we were able to overcome this difficult period, but we are looking to the future with hope. I would like to thank the members of the Board and the Executive Management for their guidance and efforts in managing the Company and enabling it to achieve growth during the year 2021.”
Then the AGM commenced according to the Agenda of the Ordinary General Assembly Meeting as follows:
- To hear and approve Chairman’s report on the Company’s activities and the financial position for the financial year ended 31 December 2020, and hearing the Company’s future business plan.
Sheikh Mohammed Bin Faisal Al Thani delivered the Chairman’s report as follows:
“In the name of Allah Most Gracious Most Merciful. Dear shareholders, representatives of Ministry of Commerce & Industry and auditors, thank you for attending the Annual General Assembly meeting of Aamal Company.
On behalf of the Board of Directors, I am pleased to present Aamal Company’s 2020 Annual Report.
In the face of unprecedented challenges globally due to the COVID-19 pandemic, I am hugely proud of Aamal Company’s response at every level during 2020. Our employees responded magnificently to the new ways of working, our subsidiaries played their part in supporting local communities through the pandemic, and our diversified business model again demonstrated its resilience and value to our overall performance, delivering year-on-year revenue growth despite the pandemic.
During 2020, the health and safety of our employees, partners and all our stakeholders has, of course, been our absolute priority. On behalf of the Board of Directors, I would like to thank all our employees for their hard work and flexibility which has ensured that, in exceptionally challenging circumstances, the quality of services provided across the Group has remained as high as ever.
Aamal’s total revenue increased marginally by 1% to QAR 1,306.8m (2019: QAR 1,294.1m), driven by increased revenue in our Industrial Manufacturing and Trading and Distribution segments demonstrating the resilience of Aamal’s business model in an exceptionally challenging environment. Net profit decreased by 62.2% to QAR 121.7m, heavily impacted by the performance of our Property segment, which was affected by two factors, a drop in property valuations and by our decision to waive rents for tenants at both City Center Doha and Souk Al Harraj. Despite the financial impact, this was absolutely the right decision to take, one that was driven by our desire to support the economy in these challenging times and to support our tenants who we have always regarded as partners.
Aamal’s financial strength and resilient business model enabled us to continue to perform well at an operational level across our Industrial Manufacturing, Property, and Trading and Distribution segments. Highlights included the completion of the redevelopment work at City Center Doha; the start of production at Senyar Drums Factory, the first specialised cable drum manufacturer in Qatar; investment in a new Glass Reinforced Pipe (GRP) production line at Advanced Pipes and Casts; and the expansion of the Ebn Sina Pharmacy chain.
I am particularly proud of the performances of Ebn Sina Medical and Aamal Medical, both of which acted promptly and with enormous professionalism to support Qatar’s public healthcare sector in addressing the challenges of the pandemic to avoid a shortage of medical supplies. This is a great example of how the private and public sectors can successfully work together to overcome even the most difficult conditions. Aamal continues to support the community and has been proud to sign an agreement in support of the Qatar Cancer Society.
I would also like to thank our government for its inspiring leadership during the pandemic and for their continuous support, including the QR75bn stimulus package to support the private sector, which has helped companies withstand the impact of the pandemic. I believe that our Government has taken the most effective steps to face the global pandemic. Under the wise leadership of HH Sheikh Tamim Bin Hamad Al Thani, the Emir of Qatar, the country has managed to control the spread of the virus, enabling the gradual reopening of the majority of sectors and allowing a timely return to almost normal levels of activity in the country.
Although the pandemic means that these remain uncertain times, Aamal will continue to capitalize on the opportunities generated by the government’s strategy to prioritize public spending and the many opportunities provided by the Qatar National Vision 2030, leveraging our position as a leading participant across a number of key economic sectors. Aamal’s Board of Directors is pleased to recommend for approval a 2020 cash dividend of 4%. We remain confident in the outlook for Aamal Company and in our ability to deliver long term growth and value creation for all our stakeholders. Thank you for your ultimate trust.”
The General Assembly approved the Chairman’s report on the Company’s activities and the financial position for the financial year ended 31 December 2020, and the Company’s future business plan.
- To hear and approve the External Auditor’s report on the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2020.
The General Assembly approved the External Auditor’s report on the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2020.
- To discuss and approve the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2020.
The General Assembly approved the Company’s balance sheet and profit and loss account for the financial year ended 31 December 2020.
- Total revenue up 1% to QAR 1,306.8m (2019: QAR 1,294.1m), driven by increased revenue in our Industrial Manufacturing and Trading and Distribution segments, and demonstrating the resilience of Aamal’s business model in an exceptionally challenging environment
- Gross profit down 21.4% to QAR 341.0m (2019: QAR 434.0m)
- Net profit before share of net profits of associates and joint ventures, accounted for using the equity method and fair value gains/losses on investment properties (“net underlying profit”) down 25.8% to QAR 192.9m (2019: QAR 259.9m)
- Net underlying profit margins decreased by 5.3 percentage points to 14.8% (2020: 20.1%)
- Share of net profits from associates and joint ventures accounted for using the equity method decreased 19.0% to QAR 50.4m (2019: QAR 62.3m)
- Fair value losses on investment properties of QAR 121.6m in 2020. There were no fair value gains or losses on investment properties in 2019
- Total Company net profit1 down 62.2% to QAR 121.7m (2019: QAR 322.1m), with net profit attributable to Aamal equity holders down 61.7% to QAR 123.3m (2019: QAR 322.3m)
- Reported earnings per share decreased 61.7% to QAR 0.02 (2019: QAR 0.05)
- Net capital expenditure down 11.9% to QAR 42.6m (2019: QAR 48.3m)
- Gearing remains low at 4.20% (2019: 1.06%)
1 Total Company net profit is before the deduction of net profit attributable to non-controlling interests.
- To discuss and approve the proposal of the Board of Directors to distribute dividends to the current shareholders at a sum of 4% of the nominal value of each share of the Company that they own (i.e. QR 0.04 per share).
The General Assembly approved the proposal of the Board of Directors to distribute dividends to the current shareholders at a sum of 4% of the nominal value of each share of the Company that they own (i.e. QR 0.04 per share).
- To discuss and approve the Company’s Corporate Governance Report for the year ended 31 December 2020.
The General Assembly approved the Company’s Corporate Governance Report for the year ended 31 December 2020
- To discuss and approve the Company’s Internal Control over Financial Reporting (ICOFR) Report for the l year ended 31 December 2020.
The General Assembly approved the Company’s Internal Controls over Financial Reporting (ICOFR) Report for the year ended 31 December 2020.
- To discharge Members of the Board of Directors from their liability for the year ended 31 December 2020.
The General Assembly approved discharging Members of the Board of Directors from their liability for the year ended 31 December 2020.
- To appoint the External Auditor for the Financial Year of 2020 and fix their fees.
The General Assembly approved appointing Price Waterhouse Coopers as the Company’s External Auditor for the Financial Year of 2020 and determined their fees.
Laura Ackel, Communications and Marketing Officer
About Aamal Company Q.P.S.C.
Aamal is one of the region’s most diversified companies and has been listed on the Qatar Stock Exchange since December 2007. As at 30 March2021, the Company had a market capitalisation of QAR 6.43bn (US$ 1.77bn).
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.
For further information on Aamal Company, please refer to the corporate website: http://www.aamal.com.qa
© Press Release 2021