Baladna announced its results for the year that ended on December 31, 2022 on Thursday.
Baladna effectively grew its top line during the twelve-month period ending on December 31, 2022, achieving a revenue of QR986mn compared to QR773mn in the previous year, representing a growth of 28%.
Baladna achieved a net profit of QR81mn in 2022 compared to QR134mn in the previous year.
The net profit declined due to the increase in the cost of animal feed, raw materials, packaging materials, fuel, logistics and finance cost, which negatively impacted the company’s profits, results and cash flow, leading to the company’s inability to pay dividends to its shareholders for 2022 results as it used to do every year.
Baladna is "actively co-ordinating" with authorities to study multiple solutions for reducing the effects of high production costs on the company's profitability.
In order to mitigate the impact of the increase of input costs, and through the implementation of management plans for new initiatives to capitalise on improving market dynamics during the FIFA World Cup Qatar 2022, Baladna has nevertheless managed to increase sale volumes across both the retail and HORECA (Hotels, Restaurants and Cafe) channels.
This resulted in an increase in sales volumes across all product categories.
Baladna also managed to enhance operational efficiencies through a reduction in sales wastage and management of overhead costs.
Baladna is "continuously assessing" opportunities to enhance its product mix by developing and introducing new, innovative products and optimising its product portfolio.
During the year 2022, Baladna managed to "introduce a number of new SKUs to optimise and enhance" its product portfolio.
As part of the company’s plans to further increase growth in the local market, Baladna announced that the construction of the evaporated milk processing factory is "progressing well" and is currently in its final stages.
The facility is expected to be completed by the end of the first quarter of 2023, with commercial production expected to start at the beginning of the second quarter of 2023.
Additionally, as part of Baladna’s diversification strategy, the company is continuously seeking and evaluating business opportunities locally and abroad.
The recent acquisition of E-Life, a Qatari detergent processing factory (75% stake), is expected to start generating revenue for the company in the year 2023.
International expansion opportunities and partnerships are key for long-term growth and remain a focus area for Baladna. Opportunities in the local market and beyond are being evaluated on a case basis, with feasibility studies currently underway.
As part of its ongoing efforts to enhance operational efficiencies and support food security and self-sufficiency, Baladna is considering potential value accretive options for backward integration that would ensure the supply and quality of feed, a critical component of the company’s operations.
Baladna’s "strategic focus" remains on creating value for shareholders through its ongoing strategic initiatives within the State of Qatar.
The company said it is “committed to delivering superior products, expanding its product portfolio, and focusing on efficiency across the entire value chain.”
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