Qatari Investors Group Q.P.S.C. (QIGD) Earnings Call Transcript & Summary

Hello, and welcome to Qatari Investors Group Conference Call. Please note that this call is being recorded. [Operator Instructions] Now I would like to hand the call over to Shahan, you may begin.

Thank you, Angela. Hello, everyone. I want to welcome you to QIGD's First Quarter 2025 Financial Results Conference Call. So on this call from management, we have the company's CEO, Houssam El Kurdi; and Muhammad Shiraz, Group Financial Controller. So as usual, we will conduct this call with first management reviewing the company's results followed by a Q&A session. I will turn the call over now to Houssam. Please go ahead.

Yes. Hello, ladies and gentlemen. I will go over a review in English, followed by the same review in Arabic. And then we will move to questions and answers. Ladies and gentlemen, it's my pleasure to welcome you to the Qatari Investors Group, QIG IR call. My name is Houssam El Kurdi, Chief Executive Officer; and here with me is Mr. Muhammad Shiraz, the Group Financial Controller. We are pleased to present to you the first quarter results of QIG Group for 2025. In this call, we will highlight the financial performance of the group and the progress achieved during the reporting period. The group recorded a total revenue of QAR 137 million for the period, representing a 2% increase compared to the same period last year. This increase was primarily driven by and an increase in contracting activities under the security sector. Other sectors such as the Marine Services are also showing a decline in revenue as shipping volume has dropped to -- in the country, and it should continue in the next quarter as well. Overall, there is a slowdown in the industrial sector, particularly due to the reduced activities in the construction market. On a positive note, we have seen a modest improvement in revenue from cement exports as we have recently commenced export operations. The group's net profit for the period amounted to QAR 41 million, a 4% decline as compared to the same period last year. EBITDA reached QAR 73 million for the period, 5% lower than last year. Finally, we focus our effort to improve -- to implement a strategy of diversification and investments to make more achievements that benefit the group and enable us to play an active role in supporting Qatari's economic vision. Thank you, and I will move to the Arabic text. [Foreign Language] Thank you very much, and we are open to your questions and answers.

[Operator Instructions] And your first question comes from the line of Zohaib Pervez with Al Rayan Investment.

I had a question on your cement segment. Could you give us some data on the volumetric growth during the quarter and on the pricing for the segment? I mean you operate in many different segments, so could you give us some color on which segment was primarily responsible for the growth in your revenues? And also, which segment was again responsible for the decline in margins -- gross profit margins for this quarter versus the last quarter of -- versus the last quarter -- same period last quarter?

This is Muhammad Shiraz. In volume drop that what we mentioned here is, it is almost the same as compared to the last quarter. Actually, cement local sale is dropped but it is compensated through -- as we mentioned through export sales. So there is no slight change in the volume and amount of the cement section, right. Sorry?

So the volumes you're saying are flat from first quarter of '24 till now they are flat?

Yes, almost the same. So there is a drop in local market, yes, that is compensated through our export activities. Right? And it comes to the next section means, let's say, another sector. Right now this quarter, we have good performance in security sector, which is on this security cameras. This is scanning and this equipment. So this quarter, we have a good -- I mean, you can see this contract, so materialized and we have a growth in this revenue section, so this is second. Third one is our Marine section, as you know, that in the country, economic activities have dropped down, so we have a lesser import and export activities through this Marine section, so that is third part, which contribute this small growth in our revenue section.

Sorry, the Marine segment improved the revenues or declined?

No, decreased because of the economic activities...

Okay. And security segment, you said the revenues were high...

It is contracting. In segment section, if you look at exactly, it is named as contracting.

Contracting? Sorry, this information about different is not -- the different segments, it's not available in the financials for the first quarter, right?

No, quarterly, we are not sharing the segmental information, but annually, yes, it was available.

Yes. So do you plan on considering. There's so many segments and so many segments of different dynamics, do you plan on giving this information on a quarterly basis?

Yes, we have -- do have plans, okay? And this is the reason that's why we are saying that we need to -- some sections, we have a drop and some section is showing improvement. So going forward, next upcoming quarters, we are focusing on to improve our revenue lines that will ultimately add in our profits. So focus is on our export of cement so that we are materializing more in this section.

So in fact, we are planning to work at 2 levels to increase the revenue and to optimize the cost of the group. And this is the target for the second quarter.

Okay. So I've got actually 3 more questions. If it's all right, I should have come back in the queue?

Okay.

Okay. So my first question is on the gross margins. Why have the gross margins gone down in this quarter versus first quarter of '24? My second question is what is the price difference between local cement sales and your exports? And my third question is on the SG&A. SG&A has come down quite significantly. Is there a one-off there? Or this is more sustainable cost savings that you've done and it will remain the same for the rest of the year quarters?

Answer to your first question, gross margin is coming down. Our cost is increasing. As we mentioned that this quarter, we focused on export activities, so the export charges, this is in shape of transportation and the port-handling charges. So that is a major reason that we have a high cost on tariff and ultimately result in -- drop in our margin.

Let me comment because the export, we are getting the experience of exporting the cement and there's extra cost for the shipping. And we have to also to maintain the market, the price on their market. So for us, it will compensate with the revenue, but we lost a little bit on the gross margin.

Right. And the next part is SG&A, okay? Yes, that is, as we are saying cost optimization, our mission during this year. So that is the reason we try to maintain the cost to some extent. And this is the reason we have a drop in SG&A and selling and distribution.

Okay. Sorry, what is the price difference between local sales and local cement sales and exports?

It is almost -- we try to maintain the level, okay? So we try as much as we can get maximum return from export. So right now, it is -- we are still working on this area and exploring new market.

[Operator Instructions] There are no further questions. I would now like to turn the call back over to Shahan for any closing remarks.

Thank you. So if there are no more questions, we can wrap up this call. I would like to thank management for giving us an update on the first quarter, and we'll pick this up again in the second quarter. Thank you.

Thank you.

Thank you.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.