Widam Food Company Q.P.S.C. (WDAM) Earnings Call Transcript
October 26, 2021
Earnings Call Speaker Segments
Good day, and welcome to the Widam Food Quarter 3 2021 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Roy Thomas. Please go ahead, sir.
Hello, everyone. This is Roy Thomas from QNB Financial Services. I want to welcome everyone to Widam Food Company's Third Quarter 2021 Financial Results Conference Call. On this call from Widam Food Company, we have Ahmed Riyad Jamous, the Finance Manager. We will conduct this conference call with management first reviewing the company's results, followed by a Q&A. I will turn the call now over to Ahmed. Go ahead, Ahmed.
Good afternoon, ladies and gentlemen. I'm Ahmed Jamous from Widam Company. Now I want to show you the results for the third quarter in 2021. So the net losses for the third quarter and for the period ended in September 2021, QAR 24,488,951 compared to net losses for the same period for 2020, QAR 63,853,607. The earnings per share for this period, minus QAR 14 per share compared to QAR 0.35 positive for the same period in 2020. The main reason for the losses after lifting the subsidy, our revenue dropped by 33% and the volume for subsidy dropped by 50%. So please feel free if you have any questions related to the third quarter. Are there any questions, please?
[Operator Instructions] We can now take the first question from [ Mostafa Amer ] from Al Rayan Investment.
We just wanted to know more about the market share for Widam currently in the products that you sell. What has been your monthly sales average for this quarter? And also we see a government compensation component, again, in the income statement. Just wondering where that is coming from?
Okay. Thank you, [ Mostafa ]. For the first question, our market share and average daily sales for the third quarter. Now our market share based on the product, let's say, our market share for the previous subsidy product for the chilled Australian lamb, so it was 100% in 2020 because we were a subsidy company. Now our market share is around 60% for the lamb chilled as lifted of the subsidy. For the other products, chicken and bovine, it depends on the organ and the product type. For the average sales, daily sales, it's around QAR 1 million to QAR 1.2 million, its average daily sales -- or QAR 1.3 million, sorry. For the government compensation shown in the financial statement, it's coming from the initiative from the ministry for Eid Al Adha and Ramadan.
Sorry, could you just repeat once more on your daily volume. I sort of -- my line was dropped for a bit on that. Your average daily sales?
From QAR 1 million to QAR 1.3 million.
We can now take the next question from Anastasios Dalgiannakis from Al-Faisal.
Yes. So for me, my question is on cost. So general and administrative cost is not deescalating quick enough given the new situation now with the company. So what's the cost-cutting plan?
Sorry, I cannot hear you.
Hello? My question is on cost. Can you hear me?
Regarding the cost.
Yes. General and administrative cost. Basically, I want to ask, the cost is not reducing fast enough given the new situation now, no government subsidy for the company. So what is your cost-cutting plan? How...
Okay. Regarding the G&A cost, it's reducing by 8% for this period, okay? And regarding our plan, now we are working to prepare the cost cut for general expense in the company. So we have a plan to make a cost cutting.
Okay. Any magnitude? You can give us something for 2022 or not yet budgeted?
We are working on it now. We have a KPI and target to reduce by 20%. So we are working on it.
We can now take the next question from [ Saad Asim ] from QInvest.
I have 2 questions. The first question is, did you experience a decline in volume only for products that were subsidized previously or for all products during 2020? And...
Again, the question I believe is regarding the volume on subsidy. What's the questions exactly?
Yes. So the question is basically, did you experience a decline in volumes for only those products that were subsidized previously or throughout your product spectrum?
Okay. Second question?
And if you have, by how much? Yes. The other question I think is answered already.
The second question?
That's the only question.
Okay. Regarding the volume. Yes, the volume for subsidy reduced compared to the last year by 50%, okay? But we have increase in the other products like bovine and chicken, frozen and chilled and live as well. It depends on the product; let's say, for the chicken frozen, let's say, we have increased our volume by 1,000%, okay? For the beef, increased percent compared to the last year, 332%. But the subsidy product reducing by 50%. So hope this answers your question.
Okay. Yes. So overall, I mean, if we combine those growth rates on a weighted average basis, what would you say the growth rate has been for all products?
For whole product? Then it's for whole product?
Yes. Yes.
Do you hear me?
I can. Yes, I can hear you.
Okay. For the whole product, as a volume, 35% the reducing -- for the whole product, 33% for the value, 50% for the volume, for whole products we have.
We can now take the next question from [ Idris Adam ] who is a private investor.
Sorry. So I just wanted to find what are the future prospects going forward? And do you see an improvement with COVID restrictions being reduced?
Again, please? Two questions, right? What are the prospects question...
Yes. What are the prospects going forward? And do you foresee that COVID restrictions will have a positive impact on you, a reduction in...
Sorry, I didn't hear you. There is some problem on the connection.
Hello? Hello?
Hello.
Yes. So I was wondering about the future prospects. The future prospects, okay? With COVID restrictions, do you see any improvement?
Okay. Improvement.
Yes.
Okay. Second question?
Yes. I'm just saying do you foresee any improvement going forward?
Okay. Going forward. Now we are working on international terms. We opened a line with other countries. Previously, we focused on the market only in Qatar. Now we starting in August the sales for 3 countries: Oman and Saudi Arabia and Jordan. So now our plan to increasing our market share in Qatar and increasing the portfolio for the 5 others; Jordan, Saudi Arabia, Oman, Kuwait and Egypt. So now we're working to increase our sales for this channel, okay? And for the market in 2022, we are working to cover the market for the World Cup. So we already started the plan, and we're working on it.
We will now take our next question from Mohamed Adel from Al Faisal Investment.
So I will take you this is the last question. So regarding Jordan, Oman, Saudi Arabia, Kuwait and Egypt, business would be like exporting from Qatar or you will have facilities there in these countries?
You mean the other countries?
Yes.
Okay. For the time being, we don't have any facilities for other countries. We focus to import from our branch in Sudan or directly to other countries without any facilities. We are not a distributor. We are importing to the end user directly for the hypermarkets and make a deal for the consumers and hypermarket directly. Yes, we have a plan to open the facilities for us in Saudi Arabia. But still, it's on the table. We may have study and we will see if it is feasible or not. So for the time being, we don't have any facilities for any countries; we import to it, but we import directly from Sudan to these countries from our branch.
As there are no further questions at this time, I would now like to turn the call back to your speakers for any additional or closing remarks.
All right. If there are no further questions, we would like to thank Widam Food Company for the results update and look forward to speaking to you all for the final quarter results.
Thank you.
Thank you. That will conclude today's conference call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.
Read the full transcript via the API
You're viewing the first half of this call. Get the complete Widam Food Company Q.P.S.C. transcript - plus 252,000+ transcripts from 12,000+ companies, speaker segments and full-text search - through the EarningsAPI REST API or hosted MCP server.
Get an API key View API docs →For developers and AI pipelines
Programmatic access to Widam Food Company Q.P.S.C. earnings transcripts and 252,000+ others is available through the
EarningsAPI REST API and the hosted MCP server.
Quarterly plans from $105 - full transcripts, speaker segments, full-text search,
and the /api/v1/transcripts/recent polling endpoint for ETL pipelines.