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

[Foreign Language] and good afternoon, everyone. Welcome to the interactive session for the discussion of group unaudited accounts for second quarter ending 30th June 2026. My name is Adnan Khan, and I'm the Finance Manager of the company. These accounts are already disclosed on MSX and published in the newspaper. I would like to discuss these accounts along with my management from Oman and UAE. Before I give a detailed discussion on the accounts, I'll do a brief discussion or give a general overview of the company. [Operator Instructions] So this is the content list which we will be going through. We have a complete snapshot, our product range, financial position, profitability, expenses and then question-and-answer at the end. Gulf International Chemicals, we listed in -- on MSX in 1996. Our activities are manufacturer of building and construction chemicals, specialty chemicals, road paints, customized solutions to construction industry. Our head office is in Muscat, Rusayl Industrial Area. We also have a branch in Sharjah. This is a snapshot of our product range. We are ISO certified. Our product range includes concrete admixture, adhesives, 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 now we'll start with the review or discussion of the financials. We have our financial position. It's just an abstract of the financial position. So our noncurrent assets as on 30th June 2026 are OMR 395,856 as compared to OMR 400,700, a 1% decline. This is just amortization and depreciation, no actual change in any other major line item. Our current assets are OMR 2,659,662 as compared to OMR 2,502,261, which is a 6% increase as compared to 30 June 2025. This increase is mainly due to our increase in the fixed deposits and higher level of inventory in view of the current geopolitical situations, so which gives an overall 5% increase to our total assets. Our noncurrent liabilities are as on 30th June 2026, OMR 99,574 as compared to OMR 101,904 on 30 June 2025, a 2% decline, which again is just based upon the end of service benefits and lease liability workings, which are periodical. Then our current liability is OMR 280,510 as on 30th June 2026, as compared to OMR 177,554 last year, a 59% increase. Again, this increase is mainly because we have been buying higher levels of inventory. So our trade payables have increased. And there's slight delay in the payments to the suppliers only because our buying is more than regular. It has increased as compared to previous periods. The total equity and liability is OMR 3,055,516 as compared to OMR 2,902,980, which is a 5% increase on the total equity as compared to last year. This is a graphical representation of our financial assets. The blue is 2026, yellow is 2025. So it's just showing total noncurrent assets, total assets, total capital reserve, total noncurrent liabilities, current liabilities and total equity and liabilities. Now, the current income statement. So our revenue as on 30th June 2026 is OMR 927,584 as compared to OMR 799,386 last year, which is a 10% increase. And then we have our cost of revenue, which is OMR 608,709 as compared to OMR 528,013, which is also 11% increase. So our percentage on sales -- gross profit on percentage of sales is 34% for both years. So our margins are more or less almost same, 34% for both each year, but the values have significantly increased. Our other income is OMR 24,532 as compared to OMR 24,514, which is almost same, just 3% change because our other income is coming from fixed sources. So it's not changing from period to period. Our general and admin expenses are OMR 228,902 as compared to OMR 185,551, a 6% decrease. Then selling and distribution, OMR 87,383 as compared to OMR 78,546, 3% decrease. Finance income, OMR 38,224 as compared to OMR 24,815, 15% increase. Finance income is from fixed deposits. So we have increased the deposit this year. So that's why we have a higher interest rate. And then finance cost and net profit after tax is OMR 48,412 as compared to OMR 49,174, which is almost 20% decrease. This decrease is just because of higher costs that we had to pay based on the market situation. This is a graphical representation of our income statement. Then expenses, this is just what we have discussed, cost of sales, general and admin expenses, selling and distribution expenses, finance cost. So this is the end. If you have any questions, please you are free to ask. Anyone, any questions, please? At the moment, we are more concerned about the current situation. As the market or geopolitical situation is clear, then we will have more concrete plan of our allocation of funds and reserves. So if there is no further questions, I would like to end this meeting. I would like to thank everyone for joining. Have a good day.