Baladna reports 118% net profit surge

QATAR – Qatari dairy company Baladna reported substantial growth in its nine-month financial results for 2024, with impressive year-over-year gains attributed to regional expansions, new products, and a lucrative government contract. 

For the period ending September 30, Baladna’s revenue rose by 11%, increasing from US$211.7 million to US$235.5 million. 

Net profit also surged by 118%, climbing from US$17.7 million to US$38.6 million, demonstrating a significant improvement in profitability. 

Additionally, third-quarter revenue reached $72.4 million, marking a 3% year-over-year growth.

The financial boost follows the company’s positive half-year performance in 2024, where Baladna saw a 15% year-on-year revenue increase to US$164.1 million and a 137% rise in net profit to $27.6 million.

Baladna attributed these gains to several key strategies, including expanding its product range with high-protein dairy items, Greek yogurt, and cheese, while also rebranding its Awafi milk line and juice offerings. 

This product diversification has helped Baladna capture a larger market share and improve profitability across various segments.

A significant government contract further fueled Baladna’s growth trajectory. Earlier this year, the company secured a US$27.2 million) agreement with the Qatari government aimed at enhancing food security through the country’s evaporated milk supply chain. 

Baladna is now constructing a dedicated facility to meet this demand, a move that strengthens Qatar’s self-sufficiency in dairy production and aligns with national goals for food resilience.

Baladna has also made substantial investments in Algeria and Egypt, expanding its operations and bolstering its presence in North Africa. 

In Egypt, Baladna entered into a US$1.5 billion partnership with the Suez Canal Authority in 2023 to establish a dairy farm in New Valley Governorate. 

This facility will house 20,000 cows, projected to produce 300 million liters of milk annually. Baladna has also increased its stake in Juhayna Food Industries, a prominent Egyptian FMCG player, raising its shareholding to 15.03%.

In Algeria, Baladna has embarked on an ambitious partnership with the Algerian National Investment Fund (FNI) to launch one of North Africa’s largest dairy projects. With an investment exceeding US$3.5 billion, this multi-phase initiative aims to satisfy up to 50% of Algeria’s powdered milk demand by 2026. 

The project, initiated in April 2024 in collaboration with Algeria’s Ministry of Agriculture, includes stages such as water resource assessments, cereal cultivation for cattle feed, livestock farms for milk and meat production, and, ultimately, a powdered milk factory. 

By enhancing local dairy production capacities, this project will reduce Algeria’s reliance on dairy imports and support the country’s food security objectives.

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