Widam Food Company Q.P.S.C. ($WDAM)

Hello, everyone, and welcome to Widam Conference call. Please note that this call is being recorded. I'd now like to hand the call over to Dana for opening remarks.

Hello, everyone and [Foreign Language] welcome to you all. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to Widam Food Company's Fourth Quarter 2025 Financial Results Conference Call. On this call from management, we have Yasin Ibrahim, Finance Manager. We will conduct this conference call with management's first reviewing the company's results followed by a Q&A session. I will now turn the call over to Yasin. Please go ahead.

Thanks, Dana, for the introduction. Hello, everyone. Good morning, and thank you, everyone, for attending the conference call. Overall, this year has not been like the good for Widam. But I would just like to mention that Widam reported a net loss of around QAR 125.2 million in 2025 compared to a net loss of QAR 56.2 million during the same period last year. And this shift is primarily due to the absence of revenue from international operations and reduced domestic revenue and margins on the domestic sales as well. The domestic sales, even the -- there is a reduction of 21% on the domestic sales, primarily driven by reduced demand and intensified market competition. We have taken proactive steps to manage costs. Gross margins were impacted due to pricing pressure, but operational expenses were successfully reduced by 14% compared to last year for the same period. In domestic sales, we have 2 major segments, which is B2B, business-to-business and B2C business to customer. In B2B segments, we have HORECA industry, traders, retailers and wholesalers where we have seen like a reduction of 31% in the revenue. In B2C, business to customer segments, mainly home delivery and butcheries, saw an overall decrease of 18%. However, we are still working on enhancing our market efforts to boost it through our home delivery app, aiming to reach more customers and improve overall performance. In other income, there is QAR 39.8 million, of which QAR 38.4 million related to the reimbursement of cost by the state of Qatar for the services provided to date on slaughterhouses. On the cost of sales side, Widam has been actively working with both local and international suppliers to ensure a reliable supply of high-quality products and competitive prices. By expanding this partnership, we are aiming to strengthen our supply chain and continuously improve our margins through better cost efficiency. On G&A expenses, without keeping -- without considering the provision that are made, Widam's general and admin expenses for the year stood at QAR 54.8 million, marking a QAR 15 million reduction compared to the same period last year. This represents a 21% decrease excluding, as I mentioned earlier, excluding the impact of provisions and reflect the company's ongoing efforts to streamline operations and manage cost effectively. We are continuously monitoring our costs, maintaining them at reasonable levels and reducing them wherever it's possible. On the balance sheet side, the equity investment, Widam sold equity investment during the year and recorded a gain of QAR 18.3 million. The sale helped us generate the liquidity we needed to manage an operational cash shortfall and avoid taking any additional loans that would have increased our finance cost. So you can see the bank loans has been paid in full around, QAR 91 million during this year. Trade and other receivables, the decrease in trade receivable is mainly due to recording of additional provision against doubtful balances in receivable and advance to suppliers and then a successful collection of outstanding receivables during the period. For the legal reserves during the year, the AGM held and the shareholder approved using QAR 89 million from the legal reserve to offset the accumulated losses. This is on the income statement and balance sheet side. But if you see in the financials, there is a going concern. The financial statement shows that accumulated losses are more than 50% of the share capital, which has resulted in negative equity. Because of this, the auditors reported that there is a material uncertainty about the company's ability to continue as a going concern. However, Widam's management still believes that the using going concern basis of accounting is appropriate. There are other developing stories, and one of them is like the Widam has signed memorandum of understanding with Hassad Food in relation to a potential transaction in the form of share swap or merger with Aalaf Qatar, which is wholly owned by Hassad Food Company. So Widam management and the Board are actively looking for the options to keep, continue a going concern and also making sure that Widam make profit, enter into the profitable ventures, making sure that the products are brought into Qatar at competitive cost where we can generate margins and explore other options also for the mergers or the share swap, as mentioned here. So this is what it is from my side for today. If you have any questions on this, please do ask. Thank you.

[Operator Instructions] As of right now, we don't have any pending questions. I'd now like to hand the call back to Dana for closing remarks.

If there are no questions, we would like to thank the company's management for the results update, and we look forward to speaking to you all for the first quarter results.

Thank you. Thanks, Dana.

Thank you for attending today's call. You may now disconnect. Goodbye.