(The Group’s Comments) Widam Net Profits Drop to QAR 49.24 Million in the First Half of 2019

July 16, 2019

Profits: amounted to QAR 49.24 million in the first half of 2019, a drop of 18.8%, compared to QAR 60.61 million for the corresponding period of 2018, and the company’s earnings per share fell to QAR 0.27 from QAR 0.34. As for the second quarter profits, they declined by 31% to QAR 23.4 million, versus QAR 33.9 million for the same quarter of 2018. The decline in profits was due to non-recurring activity, since the company has sold one of its investments during this half in addition to recording other losses.

Comprehensive Income: Widam recorded profits of revaluation of foreign currency differences of about QAR 968,000 in this half, versus a loss of about QAR 2.4 million in the corresponding period of 2018.

Revenues: increased by 7.8% to QAR 304.4 million in this half, while cash sales decreased by 8% compared to a 45% increase in sales or QAR 38 million. Sales to cost of sales ratio stood at 165% compared to 1795 for the same period of 2018.

Government Subsidization: Widam operates under an agreement with the Government of Qatar to subsidize the company for a fixed amount per kilogram. Government subsidization amounted to QAR 283.8 million for the same period of 2018, a decrease of 6.3%.

Nonrecurring Losses: During the first six months of the year, the company sold one of its investments in the Rakeya area in Qatar, resulting in a loss of QAR 13.85 million, which affected the profits of the period.