(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.
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