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

Good morning, everyone. Welcome to the investor discussion session for the first quarter of financial year '26-'27. I'm Shweta Gambhir, Board Secretary of the company. Joining me today are Mr. Harkamal Kumar, Chief Financial Officer of the company; and Mr. Aiman, Investor Relations Officer. We'll have a question-and-answer session at the end of the meeting. In this session, I'll take you through the income statement and balance sheet as on 30th June. First is the income statement for the period ended 30th June 2026, with comparison with the figures for the same period of 2025, sales of the company has increased from OMR 4 million to OMR 4.7 million, which results in 19% growth. Cost of sales has increased by 18% from OMR 3.4 million to OMR 4 million, which is in line with sales. Gross profit for the period has increased by 25% from OMR 578,000 to OMR 720,000. Other income has decreased by 15% from OMR 13,000 to OMR 11,000. On the expenses side, selling and distribution expenses has increased by 32% from OMR 234,000 to OMR 308,000 major increase is in salaries, approximately OMR 82,000. General and admin expenses has increased by 22% from OMR 221,000 to OMR 270,000. Directors meeting fees has increased by 8% from OMR 4,000 to OMR 4,300. Profit before tax has increased by 13% from OMR 117,100 to OMR 132,000. Profit after tax has increased by 14% from OMR 98,000 to OMR 113,000. Coming on the balance sheet. Property, plant and equipment has increased by 9% from OMR 6.2 million to OMR 6.8 million, intangible asset has decreased by 23% from OMR 120,000 to OMR 92,000. Right-of-use asset had decreased by 4% from OMR 610,000 to OMR 585,000. Advance for capital growth has increased by 375% from OMR 216,000 to OMR 1 million. In current assets, inventories have increased by 8% from OMR 3.3 million to OMR 3.6 million. Trade and other receivables has increased by 8% from OMR 4.8 million to OMR 5.1 million. Wakala deposit has decreased from OMR 900,000 to OMR 400,000. Cash and bank balance has decreased by 4% from OMR 1.35 million to OMR 1.3 million. On the liability side, total shareholders' equity has increased by 6% from OMR 8.8 million to OMR 9.3 million. Noncurrent liabilities has increased by 5% from OMR 1.4 million to OMR 1.5 million. In current liabilities, trade and other payables has increased by 12% from OMR 7.1 million to OMR 8 million. Total current liabilities has increased by 12% from OMR 7.3 million to OMR 8.2 million. Moving on to the property, plant and equipment, balance as on 1st April 2026 was OMR 16.7 million, additions during the period is OMR 491,000, transfers during the period is OMR 758,000, written off during the period is OMR 16,000, depreciation charge during the year is OMR 152,000, resulting to the balance of OMR 6.77 million as on 30 June 2026, which is 9% increase as compared to the balance as on 30th June 2025. Trade and other receivables has increased by 9% from OMR 4.8 million to OMR 5.2 million. Trade and other payables has increased from -- by 12% from OMR 7.1 million to OMR 8 million. Thank you. That is all from our side. We are now open for question-and-answer session, if any.

I have a question.

Good morning. This is Harkamal.

This is Salman. On your annual financials, there is a note that you had given loan to other party. Can you shed a bit more on that -- shed a bit more light on that?

Loan to other parties?

Yes, it says loan to other parties of [ OMR 859,079. ] This is in the annual statements.

One, we haven't given any loans neither such specification has been given on the annual financials. We cannot extend loans to any other parties. Maybe we have given advances to other parties. It's not loans. We have given advances for capital commitments, which is mainly our warehouse. We are constructing a warehouse. The total cost of warehouse is around OMR 4 million, where we have given advances. There is no loans being given. There are advances given to various suppliers.