Baladna reported a revenue growth of QR254mn in Q1-2023, representing a 6% year-on-year growth from QR239mn.
The company achieved a QR20mn net profit in the first quarter of 2023 compared to QR26mn in the same period last year.
Baladna witnessed strong revenue growth in both HORECA and retail channels, driven by management initiatives to capitalise on improving market dynamics, as well as increased market share across the majority of product categories through an increase in sale volumes.
The company also optimised its product portfolio through the introduction of new products to the market and delisting lower performing products.
Restrictions on Baladna’s ability to increase selling prices to compensate the impact of increased costs continues to impact the company’s profit margins.
Baladna’s management is engaged in active discussions with the respective regulatory authorities to clarify the adverse effects of the macroeconomic environment on the company’s margins.
“Baladna is working closely with government agencies to offset the increased costs related to feed, packaging, and raw materials along with finance and other rising costs. We continue to focus on increasing sales, optimising our product portfolio and drive cost efficiencies to improve profitability,” said Baladna CEO Malcolm Jordan.
Baladna’s management continues to pursue strategic initiatives aimed at capitalising on the improved market dynamics, which can be attributed to population growth, by focusing on reduced sales wastage, stringent overhead cost control practices, and the development and introduction of innovative products to optimise the product portfolio. These efforts aim to mitigate the impact of high input costs on the company’s profitability.
Furthermore, Baladna announced the commencement of commercial operations at its newly-established evaporated milk processing factory. The initial product of ‘Evaporated Milk 170x6 Value Pack’ targeting the retail category has been soft launched in the market.
The construction of this factory and this product launch is a significant milestone for the company’s business expansion plans in the local market.
As part of its diversification strategy, Baladna has also successfully integrated operations at the E-Life Detergent Factory, a Qatari detergent processing factory that was acquired recently.
The expected revenue contribution from this business will be consolidated with Baladna’s results from the second quarter of 2023, as Baladna’s continues to explore new avenues for business growth.
International expansion opportunities and partnerships are key for Baladna’s long-term growth, and the company is continuously working on identifying opportunities with relevant local and foreign partners to expand its current business.
Baladna’s strategic focus remains on further strengthening food security and self-sufficiency in Qatar and shareholder value creation by delivering superior products, expanding the product portfolios, and focusing on efficiency across the entire value chain.
