Tribune News NetworkDoha
Baladna has achieved a revenue of QR254 million for the three months period ended March 31 2023, compared to QR239 million for the same period of last year, representing a year-over-year growth of 6 percent.
Baladna achieved a net profit of QR20 million in Q1 2023, compared to QR26 million in Q1 2022. 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.
The company is confident that efforts to communicate the matter effectively will result in a favorable response from the authorities in the near future.
“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, optimizing 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 capitalizing 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 optimize the product portfolio. These efforts aim to mitigate the impact of high input costs on the company’s profitability.
Furthermore, Baladna is pleased to announce the commencement of commercial operations at its newly established evaporated milk processing factory. The initial product of ‘Evaporated Milk 170gx6 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 Quarter 2 2023, as Baladna 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 the State of Qatar and shareholder value creation by delivering superior products, expanding the product portfolios, and focusing on efficiency across the entire value chain.
