Baladna’s H1 net profit up 19% to QR86 mn

Tribune News Network Doha Baladna, which spearheaded Qatar’s pursuit to become self-sufficient in dairy production, has further embellished its growth stor...

Tribune News NetworkDohaBaladna, which spearheaded Qatar’s pursuit to become self-sufficient in dairy production, has further embellished its growth story with the latest half-yearly results. The dairy firm posted a net profit of QR86 million on revenues of QR381 million for the first six months of 2021, translating to earning per share (EPS) of QR0.045. The profit shows a 19-percent climb from QR73 million recorded in the same period last year, on revenues of QR386 million.For the second quarter of 2021, the dairy firm’s net profit stood at QR42 million.Operating profits amounted to QR104 million compared to QR94 million during the same period in 2020. Cash flows from operations remain strong with Baladna recording operational cash flows of QR209 million compared to QR201 million registered during the same period in the previous year. Despite the continuation of a weak retail market in the second quarters, Baladna said its resilience and agility helped the company gain further market share in the retail sector and shift its new customer acquisition efforts on the HORECA (hotel/restaurant/catering) sector. “These key initiatives led to several new high profile corporate contracts and as a result, Baladna increased its portfolio penetration by 25% across its customer base,” the company said in a statement. Product portfolio management remains a key strategic pillar of Baladna’s success.Despite a temporarily overall lower market demand in the second quarter, Baladna said it managed to grow its market share across core categories, launching nine stock keeping units (SKUs) and growing the total product portfolio by 4% compared to end of Q1 2021 and by 9% compared to the beginning of the year. A continuation of the efforts to reduce costs and further enhance efficiencies across the whole value chain is positively contributing to the industry leading profit margins Baladna presents to its shareholders. In addition to the operational business development of its existing facilities and product offering, Baladna said it plans to establish an evaporated-milk-processing factory (Evaporated Milk and Sterilized Cream) and to extend the current facilities of the butter processing plant. “As of Q2-2021, the two projects are progressing well and are expected to be completed on time. In addition, Baladna has identified further business potential within the evaporated milk facility by reallocating shredded cheese and processed jar cheese to improve manufacturing efficiencies — both are expected to be value accretive to the new projects.” Baladna said it remains committed to fulfilling its vision and mission by delivering superior products and expanding its dairy and juice portfolio to become the most trusted brand of nutritional foods and healthy beverages in Qatar, as well as delivering shareholder value.