Widam Food Company Q.P.S.C. (WDAM) Earnings Call Transcript

Hello, everyone, and welcome to Widam Conference Call. Please note that this call is being recorded. I'd now like to hand the call over to Dana from QNB. Please go ahead.

Hello, everyone. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to Widam Food's third quarter 2026 financial results conference call. On this call from management, we have Yasin Ibrahim, Finance Manager. We will conduct the conference call with the management first reviewing the company's results followed by a Q&A session. I will now turn the call over to Yasin. Please go ahead.

Thank you, Dana, for the introduction. [Foreign Language] And good morning, everyone, and thank you for joining today's conference call. I would like to inform you that Widam recorded a net loss of QAR 71.8 million in year-to-date 2026 compared to a net loss of QAR 117.2 million in the same period last year. There is significant improvement in net margins despite a 34% year-on-year decline in revenue, reflecting the effectiveness of our margin management and cost discipline. Notably, we delivered an increase in gross material margin of QAR 13.7 million, underscoring our ability to adapt in a challenging operating environment. Despite the unfavorable external factors, Widam remains focused on reinforcing its core operations, enhancing pricing discipline and pursuing targeted strategic initiatives aimed at restoring sustainable growth and improving profitability over the medium term. Now, allow me to provide further details on our revenue performance. While sales declined by approximately 53% across all revenue segments, it is encouraging to note that all segments delivered higher margins compared to the same period last year. This performance reflects proactive pricing strategies, tighter cost control and operational efficiencies implemented across the business. In parallel, operating expenses were reduced by 26% year-on-year, contributing to meaningful overall profitability improvement. On the general and administrative expenses side, general and admin expenses for the period stood at QAR 35 million, representing a reduction of QAR 9 million or 20% compared to the same period last year. This reflects sustained efforts to streamline operations, optimize organizational structure and eliminate nonessential costs. Cost discipline remains our core management priority, and we continue to maintain expenses at prudent levels while supporting essential operational and strategic initiatives. On the balance sheet side, trade and other receivables decrease was primarily driven by lower sales volume during the period, coupled with effective and timely collection of outstanding balances. This reflects the company's continued focus on working capital management and credit control, resulting in improved receivables turnover and reduction in overdue amounts. Cash and bank balances increase was mainly due to the successful and timely collection of outstanding receivables, which enhanced operating cash flows and strengthened the company's overall cash position. The recycling of translation reserves -- as a result of Board's decision to close the Sudan branch, the foreign currency translation reserve is required to be recycled through P&L in accordance with IFRS. This recycling does not affect total equity as it is merely a reclassification within the equity. Thank you very much for your continued trust and support. We now welcome your questions, please. Thank you.

[Operator Instructions] As of right now, we don't have any pending questions. I'd now like to hand the call back to Dana for closing remarks.

There are no questions. We would like to thank the company's management for the results update, and we look forward to speaking to you all for the fourth quarter results.

Thank you. Thank you, everyone.

Thank you for attending today's call. You may now disconnect. Goodbye.