(The Group’s Comments) Widam Net Profit Down to QR 25.85 Million in the First Quarter of 2019

April 23, 2019

Profits: Widam Food Co. net profits amounted to QR 25.85 million for the first quarter of 2019, a decrease of 3% compared to QR 26.66 million for the first quarter of 2018. Earnings per share on the other hand amounted to QR 1.44 in the first quarter of 2019, versus QR 1.48 for the same period last year.

There is an agreement between Widam and the Government of the State of Qatar whereby the company imports and sells Australian cattle in the local market at a fixed price. The company receives a subsidized price for every kilogram of meat sold. In 2018 Armenian and Sudanese meat were included in the agreement.

Revenues: Widam’s revenues decreased by 9.9% to QR 130.18 million in the first quarter of 2019, compared to QR 118.49 million for the corresponding period of 2018. The cost of sales amounted to QR 220.6 million, recording a total loss of QR 90.4 million, versus a loss of QR90 million for the same quarter last year.

Government Support: The amount of support paid by the government to the company amounted to about QR 127.29 million in the first quarter of 2019, versus QR 126.88 million for the same period of 2018.

General & Admin Expenditures: Widam’s expenses increased by 5.6% to QR 13.8 million in the first quarter of 2019, compared to QR 13.07 million for the same period of 2018, an increase of QR 730 thousand, despite the fact that this amount negatively impacted the net profit as the company's business model is almost constant.