Baladna Q.P.S.C. yesterday announced its quarterly results for the three month period ending 31st March 2021. Following its strong operational performance in the year 2020, the Baladna team has continued to deliver positive results in the first quarter of 2021 despite the challenges of a softening retail market.
During the first quarter of the year, revenue generated was QAR 182 million (+1% growth compared to the same period in the previous year). The Company delivered a strong net profit of QAR 44 million (+54% growth compared to the same period in the previous year), representing a net profit margin of 24%. Earnings per share (weighted average) equate to QAR 0.023 and the retained earnings balance on 31st March 2021 stands at QAR 167.5 million.
Introducing quality innovative and value accretive products to the market has been a key strategic objective for Baladna since its establishment and its successful product portfolio management has allowed Baladna to gain market leader positions across all its core categories. In Q1 2021, Baladna successfully launched an additional 13 SKUs.
Focus on operational efficiencies continues to deliver results in Q1 2021. Improved herd management resulted in higher milk yield per cow of 38.4 liters per day. Improved efficiencies and higher yield in the manufacturing process, reduction in sales wastage through improved controls and systems as well as cost control on overheads.
During the Annual General Meeting held on the 20th April 2021, the Shareholders approved the distribution of the proposed amount of QAR 101 million (QAR 0.053 per share) final dividend for the year ended 31st December 2020. To date, the total dividend per share paid to shareholders since establishment is QAR 0.074, equating to 7.4% of the nominal value.
Baladna plans to continue its growth in the future. The Board of Directors approved plans to establish an evaporated milk processing factory and to extend the current facilities for a butter processing facility.
Management together with the Board of Directors diligently assessed and evaluated the feasibility and potential return prospects for the facilities and have decided to pursue this growth opportunity.
In addition to the estimated strong revenue and net profit contribution, management is pleased to provide its customers and all residents of the State of Qatar the opportunity to purchase locally produced products of high quality in these segments, contributing further to the self-sufficiency as well as Food Security Program in the State of Qatar.
Baladna’s strategic focus remains on shareholder value creation and further strengthening food security and self-sufficiency in the State of Qatar by delivering superior products, expanding the product portfolios, and focusing on efficiency gains across the entire value chain.
For more information on dividend payments please visit www.baladna.com/investor-relations or email [email protected]
