Baladna Q.P.S.C (Baladna) yesterday disclosed its quarterly results for the three-month period ending on March 31, 2023 (Q1 2023). The company announced the following:
• Revenues amounted to QR 254 million representing an annual growth rate of 6% and a net profit of QR 20 million for the three-month period ended March 31, 2023, compared to revenues of QR 239 million and a net profit of QR 26 million during the same period of last year.
• Strong revenue growth in both the Horeca segment (hotels, restaurants and cafeterias) and retail channels driven by management initiatives to take advantage of improving market dynamics.
• Increasing the market share across the majority of product categories represented in increasing sales volume.
• Optimization of product portfolio through introduction of new products to the market and delisting of low performing products.
Baladna generated revenues of QR 254 million for the three-month period ending March 31, 2023, compared to QR 239 million for the same period last year, which represents an annual growth of 6%. Baladna also reported a net profit of QAR 20 million in the first quarter of 2023, compared to QAR 26 million in the first quarter of 2022. Constraints on Baladna’s ability to increase selling prices to offset the impact of cost increases continue to affect the company’s margins. .
Baladna’s management is currently in active discussions with the relevant regulatory authorities to clarify the negative effects of the macroeconomic environment on the company’s profit margins. The Company is confident that the efforts made to effectively communicate the matter to the relevant authorities will lead to a positive response in the near future.
This was stated by the CEO of our country, Malcolm Jordan
“Baladna is working closely with government agencies to offset increasing costs related to feed, packaging and raw materials as well as financing and other increasing costs. We continue to focus on increasing sales, improving our product portfolio, and increasing cost efficiencies to improve profitability.”
Baladna’s management continues to pursue strategic initiatives aimed at capitalizing on improving market dynamics, which can be attributed to population growth, focusing on reducing lost sales, stringent practices to control overheads, and developing and introducing innovative products to improve the existing product portfolio. These efforts aim to mitigate the impact of higher input costs on the company’s profitability.
Furthermore, Baladna is pleased to announce the commencement of commercial operations in its new evaporated milk manufacturing plant. The initial product “evaporated milk 170g x 6 packs” was launched targeting the retail segment of the market. The establishment of this factory and the launch of this product is a milestone in the company’s business expansion plans in the local market.
As part of its diversification strategy, Baladna has also successfully integrated operations with the e-Life Detergent Gent Factory, a recently acquired Qatari detergent processing plant.
The expected revenues from the business and activities of this plant will be integrated with Baladna’s results starting from the second quarter of 2023, as Baladna continues to explore new avenues for business growth.
Partnerships and opportunities for international expansion are fundamental to our country’s long-term growth, and the company is constantly identifying opportunities with relevant local and foreign partners to expand its existing business.
Baladna’s strategic focus remains on enhancing food security and self-sufficiency in the State of Qatar and creating shareholder value by offering superior quality products, expanding product portfolio, and focusing on efficiency across the entire value chain.
