Baladna has reported a total net profit of QR112.9mn from December 2019 to September 2020, a more than 233% growth compared to the same period in the previous year.
Net profit attributable to the third quarter of 2020 stood at QR29.0mn. Correspondingly, Baladna achieved a strong net profit margin for the 10-month period of approximately 18.1%.
During the third quarter of 2020 (03), Baladna achieved revenues of QR182.3mn, totalling the revenue for the 10-month period since December 2019 to QR624.2mn, or a more than 92% growth compared to the same period in the previous year.
Baladna stated that its financial and operational results confirm the company's market leading position, being the customers' preferred choice for dairy products and beverages in Qatar, as well as its corporate strategy and vision.
Regardless of the continuation of strong headwinds due to the impact of the Covid-19 pandemic and precautionary measures established, Baladna said it was able to ensure the continuous production and supply of products to its customers while safeguarding the health and well-being of customers and employees.
Furthermore, the company was able to continue the growth of market share in key segments, especially the development of high profit (creams) and high growth (cheeses) segments, which are attributable to the market intelligence and product development capabilities.
Smart product development and product portfolio management remain key during these volatile times, the company said. Baladna continues to focus on introducing innovative and value adding products, having launched 28 new SKUs and delisted 13 items to optimise its yield during the third quarter this year. As of September 30, Baladna has an attractive portfolio of 225 products.
Operational improvements continue across the supply chain. In particular, the farming division continues delivering significant productivity gains achieving an average daily milk yield of 36.8 litres per cow for the current period compared to 31.2 litres per cow for the same period last year.
Despite a small decline in revenues compared to the second quarter, and the additional cost incurred to ensure business continuity, the management is pleased with the strong profit margins achieved, which is a result of strategic planning, enhancing digitalisation, automating of processes, and continuous cost monitoring and evaluation programmes.
Baladna remains in a strong and solid financial position. For the 10-month period from December 2019 to September 30, 2020, earnings per share (weighted average) have equated to QR0.061. Retained earnings balance on September 30, 2020 is QR103.2mn after distributing the first interim dividend of QR40.0mn in April 2020.
The management and all employees will continue to focus on driving business development, enhancing efficiency through actively streamlining all aspects of the value chain, remaining committed to serving customers and delivering shareholder value, Baladna stated.
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