National Biscuit Industries Limited SAOG (NBII) Earnings Call Transcript & Summary

Good morning, everyone. Myself Shweta, Board Secretary of National Biscuits Industries Limited, SAOG. I welcome you all to MSX discussion session for the period ended 30th June 2025. With me are Mr. Aiman Al Hadhrami and Mr. Harkamal Kumar. We will have a question-and-answer session at the end of the meeting. In the next slides, I'll be presenting the income statement and balance sheet as on 30th June 2025. Taking you through the income statement for the period ended 30th June 2025 in comparison with the figures as on 30th June 2024, sales has decreased from OMR 4.1 billion to OMR 4 million. Gross profit has declined from OMR 602,000 to OMR 591,000. Other income, which includes interest on fixed deposits and scrap sale has grown by OMR 8,000. Expenses decreased from OMR 5.1 million to OMR 4.7 million, OMR 519, 000 to OMR 475,000. Net profit for the period has increased from OMR 71,000 to OMR 99,000, resulting in a growth of 40%. Next is the balance sheet as on 30th June 2025 in comparison with the figures as of 30 June 2024. The noncurrent assets remain almost constant after the depreciation and additions. Inventories of the company has increased from OMR 2.9 million to OMR 3.3 million. Trade and other receivables have increased from OMR 4.3 million to OMR 4.8 million. The company has put excess funds in the Wakala deposits of OMR 900,000. Bank balance has increased from OMR 427,000 to OMR 1.3 million. On the liability side, the retained earnings has increased from OMR 6.5 million to OMR 7.4 million. Noncurrent liabilities have increased from 1.35 billion to 1.38 million. Current liabilities have increased from 5.7 million to 7.3 million. Moving on, I'll take you through property, plant and equipment as on 30th June 2025. Balance of property, plant equipment as of 31st March 2025 was OMR 15.2 million. Total additions during the period was OMR 45,000. Balance as on 30th June 2025 is 6.2 million resulting in a decline of 1%, which is due to depreciation. Trade and other receivables has decreased from OMR 4.2 million to OMR 4.8 million. Trade and other payables has increased from OMR 5.5 million to OMR 7.1 million. That is all from my side. And now we will open question-and-answer session, if any.

I have a question, please.

May I know your name and the shareholder ID.

Yes, sure. My name is Salman Hussain Salman AL-Lawati. I'm a shareholder in Al-Anwar Investment, not in Nabil Biscuit. Thank you very much for providing the details. I just want to touchbase on 2 things. The first question is from your current revenue, how much of that is local and how much is export, number one? And number two, I have seen the trend where your provision for slow-moving inventory has increased 60%. And this is mainly in quarter 1, I know, not quarter 2, from OMR 285,000 to OMR 430,000. So I just want to ask, is this a onetime thing? Or do you think this trend will continue going forward? And also your provision, which you have taken for the bad debt has increased, not as much as the slow moving, but again, from 158 till 211, so if you can shed a bit more light on these 2 provisions, please? That's all.

Okay. So to answer your first question, the percentage of mix between the local and export, around 41% of the sales is in Oman and the remaining 59% of sale is from exports [indiscernible]. Last year, it was [ 5% ] and 65%. To answer the second question on slow-moving inventories, we have got a formula basically anything which is beyond 2 years, we provide full for the packing material, and any raw material which is getting expired, we provide full for the raw material. So this is a one-time expense only, more material which was getting near to expiry or more packing material, which has got 2 years old, hence there was a provision. I don't foresee such kind of provision going forward for the slow moving. Regarding provisions for debtors, yes, recently, we have witnessed within Oman as well as within GCC countries. So there are trade debts, which are becoming nonrecoverable and hence accordingly, we are providing wherever we feel the debtors are not be able to recover.

Can you talk a little bit about the outlook till December, if any share in terms of revenue or general outlook of the company?

We foresee 14%, 15% growth over the last year by end of December.

This is Rashid Al-Lamki from Ucapital. I just want to ask about the distributed dividend this year. it was 500 basis, right? And it is the highest since 2020, right?

Right.

Is there a reason for this increase? And are we going to see the same amount in next year? Or are you going to maintain like the 250 basis like the last year?

Rashid, I'm extremely sorry. That's a decision which is taken by the Board of Directors. All here are sitting the management representative. We have no role to discuss about dividend. Yes, I believe so if the results will be positive, maybe Board will take decisions of good -- that all depends upon what kind of capital projects company will be having, whether the Board wants to utilize the fund or they want to distribute the funds, so that is not the decision in the hand of the management, that's in the hand of the Board only.

So there is no clear policy, right?

Actually, I cannot give a concrete answer on that question being a representative of the management. So the only concern is Board of Directors and they will definitely look into the profits of the company in the next year and the pipeline projects where they want to utilize the money. So if there will be new projects coming up with the company, probably they will retain the money. And if there won't be too many new projects, probably they will look for distributing the dividends. Thank you, gentlemen. Thank you for being here in this meeting. We'll be closing this meeting since we don't have any further questions. Thank you so much for joining with us today.