Qatar National Cement Company (Q.P.S.C.) (QNCD) Earnings Call Transcript & Summary

Hello, and welcome to the Qatar National Cement Earnings Call. [Operator Instructions] I will now turn the call over to our moderator, Phibion Makuwerere. You may begin.

Thank you, Mark. Good afternoon to you all. I would like to welcome you the consternation of cement company 3Q and 9M 2026 Earnings Conference Call. On the call from from catenation of cement. We've got engineer a Saham, Alior, the Chief Executive Officer. Wael or Karl, the Chief Financial Officer and Sakia, the Head of Finance and IR Officer. And as usual, they will first give us an overview of the performance during the quarter. And after that, we have a Q&A session. Let me now turn over the call to Engineer Essa to begin. Over to you, sir, you can go ahead.

Good afternoon, everybody. Thank you for taking the time to join us for the third quarter conference call. This meeting will cover the following topics. We'll start with the financial performance and then the investor presentation, then at the end, you'll have the question and answer. So let's start without further delay. Just a brief, the company has posted a revenue of QAR 315 million for the first 9 months of 2026 compared to QAR 290 million for the same period last year. It represents an increase of 9% on a quarter-to-quarter basis and a 9% increase was mainly contributed by increase in the Wash and sub volumes. . The gross profit has increased by 13% compared to last year. Overall net profit this year is QAR 80 million compared to QAR 79 million in 2025. a slight increase from last year. Shareholder equity as of September 30, 2026, amounted to QAR 2.9 billion compared to QAR 2.99 billion at the end of the previous year, which reflects robust of our financial strength. It has to be noted that we have already completed our project in the industrial area and we started ramping out some of the components. I'm glad to announce that accommodation -- labor recommendation component is already fully rented out. Now I will hand over the echo my colleague, Safe Ferris to shed some light about some of the Financial.

Thank you so much. I would like to share a brief about the profit and loss account and to the performance, the ratio is done. The income statement for the period ended 30 September '26. The revenue -- reported revenue QAR 316 million compared to QAR 219 million. The cost of sale is slightly up due to the increase in revenue. The gross profit has increased by 13%. The other income has slightly decreased by 10% and selling destruction has increased by 3% -- so G&A expenses increased by 3% and selling expenses are 33%. The share of profit and investment has increased by 156% finance costs increased by 2% and the profit slightly increased by 1%. Compared to the other liquidity ratios has slightly decreased due to the dividend payout and the increase in the investment. The group ratio has also decreased due to end. And now we'd like to move to the last session, quick here today. If you have any questions, please, you are welcome to ask about it.

[Operator Instructions] Our question comes from the line of Adnan Kim with Orion Investment.

Hello, everyone. This is Adnan from Ada Investment. Congratulations on the good set of results. I have 3 questions. So -- the first question is about the cement revenue. If I look at the third quarter revenue, it's increased by 16%. Can you clarify that this is because of the volume increase or they are less discounts . Should I ask the second question? It should be 1 by one, so.

This one, the 1 -- let's see, is the increase in the revenue is mainly due to the volume .

Because of volume. So there is no like a softening of demand due to the current situation right now -- are you guys facing or it's like normal as new year. .

One like a better approach inputted in 1 -- and let water here that we are, I think, teasing our retail position in the market. For that, we opened a new retail store in the industry area to customers .

So like this increase is like you are driving market share from your competitor?

I see you can say competition.

My second question is about the jump in gross margins year-over-year. I know like quarter-over-quarter is like flat. But why the last year third quarter margins were down so much?

If you remember in our previous financial statements, we cause we stopped reduction of clinker and we started this best of January. So part of the cost have been absorbed by the inventory started to.

Okay. Okay. My last question is about the income. Like your operating profit was up like by 37%, but there is no other income has come like year-over-year, like it's declined by 31%. Like what's the other income and why it's volatile?

Other in things on price of rental income dividend, profit from the investment of deposit and the team -- so most of yes. Your customer -- over to you. .

So like in fourth quarter, we can expect a jump in other income? .