Directors’ Report for the year ended 31st March 2025
Dear Shareholders,
On behalf of the Board of Directors, I have great pleasure in welcoming you to the 31stAnnual General Meeting of Al Anwar Investments SAOG (AAI). I take this opportunity to place before you the Annual Report on the activities and performance of your company for the financial year ended 31st March 2025.
Overview of the Group results
The Company reported a consolidated net profit of OMR 2,385,000 for year ended on 31st March 2025 as against aprofit of OMR 532,000 for the year ended on 31st March 2024, an improvement of 348%, primarily due to higher Share of Profit (SoP) from associate companies, realized gains on the sale of investments and dividend from investments classified as Fair Value. The total comprehensive Incomefor the year ended on 31st March 2025 was OMR 1,657,000 as againstlast year’s OMR 1,568,000, an improvement of 6%.
Following the successful completion of a rights issue amounting to OMR 5.0 million, shareholders’ equity stood at OMR 37.4 million as of 31st March 2025. Debt/ Equity ratio is a 0.77 as compared to 0.49in the previous year. Net assets per share as at 31st March2025is 130baizas per share as against 155 baizasfor the previous year, declined due to issue of right issue at 0.065, discount to the book value.
Dividends
The company’s accumulated profits (retained earnings) as of 31st March 2025, are OMR 4.8 million. The Board of Directors recommends a cash Dividend of 4% (Last year: 5%) and Stock Dividend of 4% (last year: 3%) for the approval of shareholders.
Financial statements
The audited consolidated financial statements presented include the following:
1. The results of Subsidiary Companies for the year ended 31st December 2024 of the following:
a) Al Anwar International Investment LLC, 100% subsidiary;
b) Al AnwarTaleem LLC, 100% subsidiary
c) Al Anwar Hospitality SAOC, a 100% and
d) Al Anwar Industrial Investments SAOC, 100% subsidiary.
2. The share of profit/(loss) of Associate Companies for the year ended 31st December 2024(AlRuwad International Education Services SAOC up to 31st January 2025) in which AAIowns between 20% and 50% of share capital or has significant influence.
3. Dividends from investments classified at Fair Value.
4. Realized and unrealized gains/losses from investment classified at Fair Value.
Performance of Investments
Associates
1. Al Maha Ceramics SAOG (AMC) (AAI Stake – 18.74%):
AMC reported revenue of OMR 4,928,826 for the year ended 31st December 2024, compared to OMR 5,707,121 in the previous year — a decrease of 13.6%. The net loss after tax for the year was OMR (1,464,824), compared to a net loss of OMR (1,120,593) in the corresponding period last year.AMC has written off its entire investment in Al Hael Ceramics. As per notification dated 24th April 2025, effective from 29th May 2025, Sultanate of Oman has imposed antidumping duty on all ceramic and Porcelain products coming from India and China with some exceptions. It is expected that it will help the company to increase its sales in Oman.
2. Voltamp Energy SAOG (VE) (AAI Stake – 24.68%):
VE reported revenues of OMR 41,552,772 for the year ended 31st December 2024, compared to OMR 30,512,671 in the previous year, an improvement of 36%. The company reported a net profit attributable to shareholders of the Parent Company of OMR 5,281,005, significantly higher than OMR 816,510 of previous year. This is mainly on account of strategic emphasis on expanding its portfolio with premium, value-driven products and boosting exports by entering new markets.
AAI divested a 9.68% stake in Voltamp during the year, realizing a profit of OMR 1,357,000 from the transaction. Despite the partial disposal, AAI continues to classify Voltamp as an associate due to its sustained significant influence over the company.
3. Arabia Falcon Insurance Company SAOG (AFIC)(AAI Stake – 22.62%):
AFIC recorded insurance revenue of OMR 21,761,637 for the year ended 31st December 2024, compared to OMR 20,973,982 in the previous year, an improvement of 3.8%. The net profit after tax rose to OMR 1,585,328, from OMR 741,594 of previous year, an improvement of 114%, primarily driven by improved technical results. The company’s performance remains well-aligned with overall market trends, reinforcing its position as a stable and growing insurer in the sector.
4. Al Ruwad International for Education Services SAOC (AIS) (AAI Stake – 43.51%):
The Company has reported lower revenue and a loss for the twelve months period ended on 31stJanuary 2025as compared to loss of last year. This is primarily due to lower number of students enrolled in the school during academic year.
5. National Biscuits Industries Ltd. SAOG (NABIL) (AAI Stake – 29.22%):
NABIL reported revenue of OMR 19,459,000 for the twelve months period ended on 31st December 2024 as against OMR 16,453,000of last year, an improvement of 18% from last year. The net profit for the periodwasOMR 993,000 as against OMR 601,000for the same period of last year, an improvement of 65%. The growth in both revenue and profitability are attributed to the company’s expanded geographical coverage and successful launch of new products in the premium segment.
6. National Detergent Co. SAOG (NDC)(AAI Stake – 25.24%):
NDC reported revenues of OMR 24,519,448 for the year ended 31st December 2024, compared to OMR 21,180,627 in the previous year, an improvement of 16%. The company reported a net profit of OMR 1,393,616 as compared to OMR 657,519 recorded in the previousyear, an improvement of 112%. The overall growth is primarily because of higher domestic sales, product mixes and favorable raw material prices.
7. Oman Chlorine SAOG (OC)(AAI Stake – 22.11%)
Oman Chlorine Group has reported revenue of OMR 34,423,834for the year ended 31st December2024 as compared with OMR 32,174,460in the previous year, a growth of 7%. The net profit (Attributable to Parent Company Shareholders) for the period is OMR 1,529,770as compared to profitof OMR 1,968,036in the previous period, a decline of 22%.
Other significant investments
1.National Bank of Oman SAOG (NBO)
In line with the Board approved strategy, Al Anwar has acquired an equity stake of 4.01% in NBO. The investment is classified at fair value. As of 31st December 2024, National Bank of Oman (NBO) reported a net profit of OMR 63.06 million, an 8.7% increase from the previous year. Gross loans and advances increased to OMR 4.09 billion, reflecting a growth of 11.7 per cent over last year. Customer deposits as of 31 December 2024 are at OMR 4.13billion, recording a strong growth of 14.4 per cent over last year.
2. Dhofar International Development and Investment Co SAOG (DIDIC)
AAI has an equity stake of 6.84% in DIDIC at carrying value of OMR 6,763,787 as at 31st March 2025. The investment is classified at fair value. As of 31st December 2024, DIDICreported a net profit of OMR 8.29 million, reflecting a 6.8% increase from the previous year’s OMR 7.76 million. This growth was primarily driven by improved performance in key associate companies and a reduction in unrealized losses on financial assets.
3. Bank Dhofar SAOG
AAI has an equity stake of 1.51% in Bank Dhofar at carrying value of OMR 6,489,687 as at 31st March 2025.The investment is classified at fair value.Bank Dhofar reported a net profit of OMR 43.61 million for 2024, up 12.5% from the previous year. Key financial highlights include a 3.0% increase in net interest income, 8.6% growth in total assets to OMR 5.09 billion, and a 14.1% rise in customer deposits.
Omanisation
AAI has always been fully committed of recruiting and training Omani employees and developing and promoting the local talent.AAI Omanisation level at 31stMarch 2025 is 57%.
Outlook
In 2024, Standard & Poor’s upgraded Oman’s credit rating from “BBB-” to “BB+” with a stable outlook. This upgrade marks Oman’s return to investment-grade status after nearly seven years, reflecting significant improvements in public finances, fiscal discipline, and economic reforms.
AAI has maintained a prudent and active approach towards managing its investment portfolio. Our objective this year is to:
• continue to support and pro-actively manage our investment companies and,
• take advantage of investment opportunities available in the market
We are confident that AAI and its Group companies will continue to play a pivotal role in Oman’s economic growth, create job opportunities for Omani nationals, and attract foreign investments in the Sultanate of Oman.
Acknowledgement
On behalf of the Board of Directors, I would like to take this opportunity to express our greetings and good wishes to His Majesty Sultan Haitham bin Tarik, and pray to Allah to grant him and his government success to lead the country and the people to greater prosperity and progress.
The Board records its sincere appreciation to Ministry of Commerce and Industry and Investment Promotion, Financial Services Authority, Muscat Stock Exchange, Bankers, Auditorsfor their continued support.
I would also like to express my sincere appreciation to the Board of Directors of all our portfolio investment companies for direction given to the managements of the respective companies. I place on record my sincere thanks and appreciation for the dedicated efforts of the management team and all employees of our portfolio investment companies.
I would also like to convey my sincere thanks to the Shareholders of Al Anwar Investments SAOG for the confidence they have reposed in the company and its Board.
For & on behalf of the Board of Directors of
Al Anwar Investments SAOG
Brig. (Rtd.) Masoud Humaid Al Harthy
Chairman