Gulf International Chemicals SAOG (GICI) Earnings Call Transcript & Summary

[Foreign Language] And good afternoon, everyone. Welcome to the interactive session for the discussion of the Group's unaudited financials for the second quarter ending 30th June 2025. My name is Adnan Khan, and I'm the Finance Manager of the company and acting GM. These accounts are already disclosed on the MSX and also published in the newspaper. I would like to discuss these accounts along with my management from Oman and UAE. Before I give details of the accounts, I will be giving a general overview of the company. [Operator Instructions]. And there will also be a question-answer session at the end of the presentation. So then, let's start. These are the contents we will be going through: company snapshot, our product categories, financial position, first half 2025 profitability analysis, expenses analysis and then questions and answers. Gulf International Chemicals was established in 1996. Our main activities are manufacture of building and construction chemicals, specialty chemicals, road paints and customized solutions to the construction industry. Our head office is in Muscat, Rusayl Industrial area. We also have a branch and factory in Sharjah. We are an ISO 9001 certified since 2007. Our product range includes concrete, admixtures, adhesives and bonding agents, industrial flooring products, protective coatings, joint sealants, concrete surface treatment products, road chemicals, concrete repair products, waterproofing products and grouts and anchors. So here's a snapshot of our financial position. Our noncurrent assets as on 30th June 2025 are OMR [ 400,720 ] as compared to OMR 592,191, which is a decrease of about 32%. This has decreased due to we have sold during the period some of our investments and also disposed of some of the fixed assets. Our current assets are OMR 2,502,261 as compared to OMR 2,313,820, which is an increase of about 8% as compared to last year. The current assets increased due to higher deposits during the period. Our inventory has increased, and we have done much better collections, thereby a higher bank balance cash on bank during the period. Noncurrent liability OMR 102,573 as compared to OMR 102,349, slight marginal increase. Current liability is OMR 176,885 as compared to OMR 157,352, which is a 12% increase as per last year's. This increase in current liability is only due to some higher trade payable balances. Our share capital reserve, OMR 2,623,553 as compared to OMR 2,646,310, very marginal change for the period. So this was our balance sheet. And here is a graphical presentation of our balance sheet. In the blue, we have 2025. In the yellow bar, we have 2024. The line depicts the differences between the periods. Now our income statement. Revenue for the 6 months ending 30 June 2025 is OMR 799,386 as compared to OMR 889,742, which is a 10% decrease as compared to last year. This decrease is mainly due to higher competition and less demand in the market. Our cost of revenue, cost of sales is OMR 528,013 as compared to OMR 594,647, almost a similar percentage decrease as our sales because it's sort of linked to the sales activity. Gross profit is OMR 271,372 as compared to OMR 295,096, 8% decrease because obviously less sales. However, our margin on sales is slightly better than last year, which means, obviously, we have done good cost controls for the period. Other income is OMR 24,514 as compared to OMR 25,307, which is 3% less. This other income is mainly from our dividend income and some other investments. General admin expenses, OMR 185,551 as compared to OMR 199,382. Selling and distribution expenses, OMR 78,546 as compared to OMR 81,059. Both have slightly decreased because of obviously less activity in the sales and some tighter controls on our costs as well. Finance income, OMR 24,815 as compared to OMR 21,525. There is an increase of about 15% in our finance income. Our finance income mainly comes from our fixed deposits. So the balance has increased for the period, thereby giving higher income to us. Finance cost OMR 200 as compared to OMR 362. This finance cost is based upon our leasing arrangements. Profit before tax, OMR [ 56 ] as compared to OMR 61,424. Net profit after tax is OMR 49,174 as compared to OMR 61,280. There is almost 20% decrease in the net profit after tax. This is the graphical presentation of our P&L. Blue is the 2025; yellow is the last year, 2024 and the line depicts the differences in the values for the period, which have already been just explained. Now we have the expense analysis. This is also from the P&L, but we have a separate graphical chart for it. We have cost of sales. All our costs have decreased during the year -- during the period. Also, this is mainly from lesser sales activity, but also tighter controls on our costs. So that will be all. If there are any questions, I'll be happy to answer to you. Does anyone have any questions? If anyone has any questions, I'll be happy to reply. So we should be closing today then. I would like to express our sincere gratitude for your unwavering support. We value the trust you place in us and remain dedicated to upholding the highest standards of corporate governance and ethical business support. Thank you very much for joining.