Aamal Company Q.P.S.C. (AHCS) Earnings Call Transcript & Summary

Mr.Zaid and Mr.Arif, would you like to give a couple of more minutes for more participants to join or should we proceed?

Yes, you can take some more minutes.

All right. I would like to take the opportunity to ask our respective attendees to share their e-mails with me through the chat box, so I can add them to our mailing list where they can receive our latest updates and invitations to any upcoming analyst calls. Mr. Arif, would you like to start?

Yes, please.

Should we start? All right. Hello, everyone. This is Laura from the Corporate Communications team of Aamal Company. I hope everyone is doing well and staying safe today. I want to welcome you all to the investors call of Aamal's first quarter financial results for the year 2025. On this call, we have Mr. Mohammad Arif the Accounts Manager; and Mr. Zaid Shelleh, the Investor Relations Manager at Aamal Company. We will conduct this call with first, Mr. Arif presenting the company's results on behalf of the management, followed by a question-and-answer session, answered by Mr. Arif. Mr. Zaid, please proceed.

Thank you, Laura. Good afternoon, everyone, and welcome to this presentation of Aamal Company results for the first quarter ended 31 March 2025. My name is Zaid Shelleh, Investor Relations Manager at Aamal and I will be delivering this presentation along with Aamal's Account Manager, Mr. Mohammad Arif. And we will both be available to answer your questions in a few minutes' time. Accompanying this call is a short presentation, which can be viewed and downloaded from the Aamal website. I will begin by summarizing the highlights of this quarter as it's -- as set out in Slide 2 of this presentation. I am pleased to report that Aamal has had a solid start for the year with positive performance overall. This has enabled us to report 6.8% increase in revenues and a 8.3% increase in the total net profit of the group as a whole. Throughout the period, Aamal was able to continue deliver against its strategy and successfully seize new opportunities. The company's diversified business model once again demonstrated its resilience, helping Aamal to achieve encouraging growth despite challenging in certain segments and markets. This performance was driven in particular, by Trading and Distribution and Property segments, which across the 2, were able to achieve both revenue and net profit growth. We continue to focus on enhancing Aamal operations and improving the competitive positioning of our segments while also pursuing attractive opportunities in both existing and new sectors. The outlook for Aamal, therefore, remains positive based on strong focused growth for the Qatari economy and non-oil sector in particular. We are also confident in continued materialization of new opportunities and growth revenue and growth avenues resulting from the government's Third National Development Strategy. The financial results outlined in Slide 4 further demonstrate Aamal's solid start to the year, while with year-on-year growth reported across both revenue and total net profit. Group revenue of QAR 580 million was up 6.8% year-on-year, driven largely by strong sales within the Trading and Distribution segment. Meanwhile, attributable net profit of approximately QAR 102 million was up 8.3% on the first quarter of 2025, driven largely by robust profitability of Property segment. Capital expenditure also fell by 35.7% during the period to reach QAR 6.6 million with a 0.33 basis points reduction in gearing also achieved, further strengthening Aamal balance sheet. Turning now to each of our segments. Starting at Slide 6. In the Industrial Manufacturing segment, revenues declined 7.2% year-on-year, primarily due to low levels of new construction activity, which damped demand in the segment. Total net profit also declined by 34.2%. Despite the low levels of activity, Aamal Cement did begin to see renewed construction sector demand in the period with several new projects being mobilized. Meanwhile, Senyar Industries continued to deliver high levels of performance with its involvement in the Kaharama and the North Field projects seeing revenue volumes remain high. Aamal Maritime also performed well, benefiting from high shipping rates and stable charter occupancy. Overall, the segment-leading competitive positioning and ongoing involvement in major infrastructure projects lends positively to the outlook with there also being optimism for recovery in the construction industry this year. Turning to Slide 7. In our Trading and Distribution segment, revenue increased 8.3% year-on-year to reach approximately QAR 429 million, while net profit rose by 2.6% to reach QAR 28.6 million despite the slight 0.4 basis point decline in net profit margin. This strong revenue growth was largely driven by the performance of Ebn Sina Medical, which delivered sizable organic growth following the recent business model change. Aamal Trading was also able to realize increased revenues and enhanced market share throughout sell-out promotions and price increase on renewed service contracts. Looking ahead, we see notable opportunities for growth and remain focused on anticipating and meeting evolving customer needs as a means to further cement our leading competitive positioning across key markets. Moving to Slide 8 and the performance of our Property segment. We are pleased to report good performance for the period with revenue increased by 7.7% to approximately QAR 82 million and associated increase in total net profit of 13.5% to reach QAR 67.6 million. The performance of City Center was driven by regular rental uplifts and the signing of several new leases during the period. This was made possible in part due to the recent enhancements to the mall's infrastructure and shopping experience. Aamal Real Estate meanwhile, saw a slight increase in its already high occupancy levels, further supporting the segment's strong performance. Turning to Slide 9 and our fourth segment, Managed Services. The performance for this segment was mostly flat year-on-year, with revenue declines only 0.9% to reach QAR 39.1 million and total net profit unchanged at QAR 4.2 million. This stable performance was attributable largely due to the weakening in year-on-year revenue at the Maintenance and Management solution. This was, in turn, a result of particularly changing comparable arising from the completion of many ad hoc projects in quarter 1, 2024, when compared. Family Entertainment Center, meanwhile, recorded a robust performance, benefiting from higher footfall during the Eid period while also leveraging effective market campaigns and recent facility improvements to better capture demand. Finally, to summarize, Aamal has seen a solid start to the year. We are continuing to enhance our leading positioning in the fast-growing sector across IT, energy, construction, and health care, positioning the company very well to deliver ongoing value to all our stakeholders in both Qatar and in the wider region. The outlook for Aamal for the remainder of 2025 is, therefore, positive. And we look forward to capitalizing on Qatar's strong growth forecast and significant business opportunities offered by the Qatar National Vision 2030. This concludes our presentation and we now welcome any questions you may have. I will start a summarized Arabic presentation for our investors. [Foreign Language] Laura?

Thank you, Mr.Zaid and Mr.Arif, [Operator Instructions] If there are any questions, Mr. Zaid and Mr. Mohammad Arif will be happy to answer. In case there are no questions, this concludes today's call. You may now disconnect.