Dhofar Beverage and Food Stuff Company SAOG (DBCI) Earnings Call Transcript & Summary

[Foreign Language] Good morning, everyone. Today, we will be discussing about the first half financial statement being approved by the Board of Directors on 29th July 2025. And here, we will be briefly commenting on the overall company progress and the performance and the major figures and facts about the company's financials. The first of all, the major highlights that people can see on the screen that -- this is the overall performance of the company that the total revenues, QAR 2.2 million for the first half of the 2025 as compared to QAR 2.12 million for the last same period in 2024. This shows a bit increase from the last year, that is 5.71% and that is quite a good performance based on this revenue. And as compared to the gross profit, there is also an increase of 3.9%. That is -- if we talk about the money, that is QAR 31,000, that is a bit increase. That is good performance. And overall, the costing, if we are talking about the costing factor, that is also an increase. If we see as a percentage analytically, the sales increased as compared to 2024 is 6%, but the cost of sales increased is 7%. This 1% difference is due to the changes in the price of the raw materials and other factors also, the increase in the price and the increase in the salaries, wages, there is also an impact on the costing for the 1% increase. This is the overall performance of our company. That is a bit -- as compared to the last year up to the gross profit is a good one. And we are expecting a more increase in the next half of the period. And here is the overall performance. The total assets, liabilities and margins summary that you can see that there is an increase of 11% assets, total assets, either company-owned or leased. These are all increased in overall 11%. And the total liabilities also there is an increase of 26% because some long-term commitments have been increased as compared to the last year as we are going to the new plants for our new products and new projects are in line. That's what this increased. The net assets decreased by 9%. That is definitely a difference between the total assets and the total liability. That is not a big problem. These will be adjusted in the next half and the next coming years. And the net assets per share decreased because of these liabilities and the overall losses incurred during the current first half. And this loss, we will be discussing in the later off and during the discussion, and I will be explaining where we got some losses. But we are expecting something good in the next half of the period. Here, we can see the total overall company progress as compared to last year and the last 6 months in 2025 and the comparison of the achievements and the budgets. There is total -- overall performance is good of the company, but some -- here, you can see the major expenses which constitute our losses. Our big contribution is 55% of the distribution costing. Distribution costing, we are having more than 5 distributions all our Oman and this transportation and other costing expenses are accumulated to these losses. Administration cost is also a big problem. That is 35% of the total expenses. This is because we are having a lot of workforce, and we are keeping them on high salaries. And there are also other benefits and some other aspects are also there, financial charges. These are not a big problem. These are due to the loans and long-term commitments, and the director remuneration is not contributing huge. Here is overall the company situation, the balance sheet, the financial positions of the company, the fixed assets, increased as compared to the last year. That is because we have a new plant in line for the carbonated soft drinks, which we implemented in the last year 2024, and we are producing many carbonated products. Work in progress is our -- the new can line project, and we will be the first in Oman who will be having the can line, Oman-based can line. And that is currently under progress, and we are seeing it to be implemented in the last of the September. And if we will talk about the current assets of the company, the cash and cash balances increased. Trade receivables, a bit change. That is due to the sale increased by 6%. If we will talk about analytically the difference between the QAR 575,000 and QAR 589,000, that is only 1% to 2% change as compared to 6% change in the sales. That is not a huge. And if we are talking about the inventories due to -- there is an increase of QAR 200,000. That is because we need to make a big stock in our raw material store to meet the demand in the market because -- this year, we are having this Kharif season. Due to Kharif season, we are having more raw material in the stock to overcome the shortage of the inventories and raw materials. Investments also decreased. There is some disparage in the market, and we incurred some losses. That is a bit QAR 12,000 only, the change. And the liability side, if we are talking about the liability side, has also increased due to raw material stores available that is available in our stores. That is not a big change. And bank borrowings increased due to long-term commitments with the banks for our new can line machine project and other some projects going on. And here, the total shareholders' equity, some negative impact on the retained earnings, that is due to the current year losses that is because of that only. There is no other big change in the company's position and the cash flows are good for the company, and there is no big changes in major aspects of operations or investing in activities. There is no -- there is not a big change. As you can see, the company's cash flows improved as compared to the last year's period under discussion and the cash inflows -- and the cash outflows has been decreased and the cash inflows has been increased. But the major impact is only due to the bank loans are overdraft. Here was the major financials for the company. If you people have any questions, you can ask. [Foreign Language]