Estithmar Holding reports exceptional 50% surge in net profit to QR170 million

22/04/2025 03:32 AST

Estithmar Holding Q.P.S.C. announced a net profit of QAR 170 million for Q1 2025, reflecting a significant 50% increase compared to the same period last year. The company highlighted a 64% surge in revenue, reaching QAR 1.3 billion compared to QAR 797 million in Q1 2024. Gross profit rose to QAR 416 million, from QAR 196 million in Q1 2024. EBITDA reached QAR 273 million, marking a 53% increase. Earnings per share also grew by 57%, reaching QAR 0.047.

These strong financial indicators reflect the effectiveness of Estithmar Holding's investment strategy, driven by continued growth across investment diversification, geographical expansion, and operational efficiency. International projects previously announced by Estithmar Holding started to have a tangible impact on its financial performance in revenue, profits and assets.

The results also reflect the achievement of one of the strategic objectives: a balanced contribution to profits and revenues from all four Clusters-Healthcare, Services, Tourism & Real Estate Development, and Contracting & Industries-highlighting Clusters ability to pursue developmental and expansion plans under the company's strategic vision. The rise in net profit stems from Estithmar Holding's effective capital management and operational efficiency, aimed at delivering strong financial results and sustainable profitability while effectively managing risks.

The Healthcare cluster posted significant growth in Q1 2025 driven by the cluster's hospitals outside Qatar which contributed to revenue as new income streams, including Imam Al-Hassan Al-Mujtaba Hospital in Karbala, Al-Nasiriyah Teaching Hospital in Dhi Qar, Iraq, and Misrata Heart & Vascular Center in Libya. Moreover, the growing number of Hospitals outside Qatar in Iraq, Algeria and Libya reflects the confidence that governments across the MENA region have placed in the quality of services provided by Apex Health, the healthcare subsidiary of Estithmar Holding.

The Services cluster maintained market leadership in Qatar, especially in Facilities Management and Catering. Expansion into Saudi Arabia, Jordan and Iraq also significantly contributed to the Cluster's profitability and the development of new income streams. These achievements reflect the growing role in supporting national strategies, operational excellence, tailored solutions, and long-standing client partnerships which has positioned it as a trusted partner in both public and private sectors. As the region continues to prioritize quality service provision and sustainability, Estithmar is uniquely placed to meet rising expectations and scale its offerings to match demand.

The Tourism & Real Estate Development cluster stayed on track with project delivery, including Rixos Baghdad (Iraq) and Rosewood Maldives Resort, driving a QAR 600 million increase in company assets in Q1 2025. Additionally, enhanced efficiency boosted profitability in existing projects such as Lusail Winter Wonderland and Al Maha Island. The Cluster introduced a new operating model applied in flagship projects like Katara Hills, Maysan LXR Doha, and Al Maha Island, contributing to profit stability.

The Contracting & Industries cluster also made a notable contribution to revenue and profit growth, especially at the peak phase of project deliveries in the Kingdom of Saudi Arabia, including major projects such as the Red Sea Airport and the Yacht Club. The Cluster also secured new projects with Saudi PIF companies and improved local operational efficiency, enhancing profitability in Qatar. These achievements reinforce the Cluster's position as a key player in regional infrastructure development, delivering large-scale projects with precision and consistency.

Overall, Estithmar Holding's Q1 2025 results highlight sustained growth aligned with its strategy to increase shareholder value in the short and the long terms. This performance reflects the company's ability to execute with discipline, adapt to market shifts, and maintain a forward-looking approach that supports continuous innovation, regional expansion, and strategic partnerships across its core business clusters.

Commenting on the results, Group CEO Mr. Juan Leon stated: "The exceptional rise in all financial indicators reflects the dedication of Estithmar's team, and I look forward to working closely with them to build on Estithmar Holding's growth story in Qatar and abroad. Analyzing these results, Estithmar Holding has demonstrated the ability to deliver sustained, diversified growth-both vertically and horizontally-paving the way for further expansion as investor confidence strengthens and our footprint continues to grow both locally and internationally, supported by a bold vision and strategic execution."

The Peninsula