Baladna Q.P.S.C., Qatar’s largest dairy and beverage company, announced its financial results for the nine months ended 30 September 2026, delivering a resilient performance that reflects the strength of its core operations. Despite regional geopolitical developments and volatility in global markets, Baladna maintained uninterrupted local production and reliable supply to consumers, supported by a strategic inventory covering approximately six months of production requirements. The Company also made further progress on its major international projects in Algeria and Syria, and the third quarter marked the successful completion of its rights issue, strengthening its capital base for the next stage of growth.
Key Highlights
- Revenue increased by 4% to QAR 977.8 million, while gross profit rose by 18% and profit from core operations increased by 10%.
- Unrealized gains from changes in the fair value of equity investments amounted to QAR 234.4 million for the nine-month period.
- The Board has proposed an interim dividend distribution for the period ended 30 June 2026, together with a portion of retained earnings as at 31 December 2025, in the form of bonus shares at a ratio of three shares for every 20 existing shares, subject to approval by the Ordinary General Assembly and the completion of the necessary approvals and procedures with the competent authorities.
- Share capital increased by 25% through a rights issue of 535,996,240 new shares, with 100% subscription achieved, strengthening the capital base to support growth.
- Development of the Algeria project continued, with preparations underway to receive the first batch of cattle as part of the herd establishment program and to complete the production facilities.
- Construction progressed on the dairy, juice and packaging project in Syria.
Financial Highlights: Resilient Core Performance and Strong Cash Generation
Baladna delivered a solid performance for the nine months ended 30 September 2026, demonstrating the strength and resilience of its core operations. Revenue reached QAR 977.8 million, up 4% year on year, driven mainly by growth in retail sales. Disciplined cost management lifted gross profit by 18% to QAR 281.0 million, with gross margin expanding to 29% from 25% in the prior year. Operating profit, excluding investment income rose by 10%.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 1% to QAR 559.9 million, while net profit rose by 1% to QAR 383.7 million compared with the corresponding period in 2025. The nine-month results included unrealized gains of QAR 234.4 million from changes in the fair value of equity investments.
Third-quarter revenue increased by 7% to QAR 318.3 million, supported by higher dairy and juice sales. Quarterly EBITDA was QAR 82.3 million and net profit reached QAR 21.8 million. The quarter’s results were affected by unrealized losses of approximately QAR 20 million from changes in the investment portfolio amid volatility in global equity markets. These fair value losses are non-cash in nature and do not affect the Company’s core operations. Management remains confident in the long-term value of its investment portfolio and expects performance to improve as market conditions stabilize.
Baladna’s operational resilience was underpinned by its substantial strategic inventory, built through proactive planning, and by its fully integrated farm-to-retail model, diversified sourcing and strong supplier relationships. These strengths helped ensure uninterrupted production and reliable supply amid regional geopolitical developments and global supply chain disruptions, without the need for costly urgent imports, while disciplined cost management contributed to improved margins.
Rights Issue Completion Reflects Shareholder Confidence
A key milestone of the third quarter was the successful capital increase through a rights issue of 535,996,240 new shares. The issue achieved 100% subscription following the sale of all 120,507,405 unsubscribed shares. The new shares began trading on the Qatar Stock Exchange on 8 September 2026, an occasion marked by a bell-ringing ceremony.
The rights issue increased Baladna’s issued and paid-up share capital by 25%, from QAR 2,143,984,962 to QAR 2,679,981,202, strengthening the Company’s capital base and financial position. The increase gives Baladna greater financial flexibility to continue investing in its operations in Qatar, advance its international expansion projects and pursue its next phase of sustainable growth while maintaining a balanced capital structure.
Algeria and Syria: Advancing Greenfield Projects to Build Long-Term Growth Platforms
In Algeria, preparations continued to receive the first batch of cattle as part of the planned herd introduction program, alongside the completion of infrastructure and production facilities. This step forms part of the project’s development program, with milk production scheduled to begin once the relevant facilities have been completed and the operational requirements have been met. As part of the development works, 59 water wells have been completed, 32 irrigation pivots are operational, approximately 420 hectares have been cultivated, and construction has begun on the dairy farms and manufacturing facilities.
In Syria, construction, engineering and procurement progressed at the integrated dairy, juice and packaging facility in Adra Industrial City, marking Baladna’s entry into a high-potential market.
Qatar: Innovation and Product Portfolio Growth
In its home market, Baladna continued to strengthen its position through an innovation program that is expanding its product portfolio into higher-value categories spanning health, nutrition and premium products. New products included high-protein skyr yogurt, a probiotic kefir drink and an Active sports drink, catering to growing consumer demand for products suited to healthy and active lifestyles. The Company also broadened its on-the-go offering with new flavors in its drinkable Greek yogurt range.
In the premium category, Baladna introduced a new ice cream range and premium Greek desserts under the Delights brand, creating new consumption opportunities. Together, these products strengthen Baladna’s premium positioning, diversify its revenue base and support growth in value-added products.
Baladna’s core business also benefits from stable, recurring demand. The renewal of the government supply contract for evaporated milk continues to provide greater long-term visibility on a portion of the Company’s sales volumes.
Proposed Interim Dividend Distribution
The Board of Directors has proposed an interim dividend distribution for the financial period ended 30 June 2026, together with a portion of retained earnings as at 31 December 2025, totaling QAR 401,997,180. The proposed distribution would take the form of 401,997,180 bonus shares with a nominal value of QAR 1 per share, at a ratio of three bonus shares for every 20 existing shares, representing 15% of the Company’s current share capital.
Implementation of the proposal is subject to approval by the Ordinary General Assembly for the distribution, approval by the Extraordinary General Assembly for the capital increase and related amendments, and the completion of the necessary approvals and procedures with the competent authorities. Upon completion, the Company’s issued and paid-up share capital would increase from QAR 2,679,981,202 to QAR 3,081,978,382.
Outlook: Building a Regional Food Security Champion
Looking ahead, Baladna will continue to strengthen its leading position in Qatar while advancing its strategic projects in Algeria and Syria. The successful completion of the capital increase through the rights issue provides additional financial flexibility to deliver on these priorities. Baladna also continues to evaluate investment opportunities in other African markets as part of its international expansion strategy, with a focus on expanding sustainable food production and creating long-term value for its shareholders.
