Posted on November 03, 2019

Baladna Q.P.S.C., a Qatari public shareholding company under incorporation (the “Company”), is pleased to announce that its subsidiary Baladna Food Industries W.L.L (“BFI”), Qatar’s largest locally-owned dairy and beverage producer, has revealed a significant boost in sales revenue following a program of investment and transformation in the business.

The rapid growth in revenue comes as Baladna has outlined an ambitious vision for growth as part of its announced IPO, which will enable Qatari citizens and corporates to share in BFI’s success and future expansion.

Since 2017, Baladna has grown rapidly and made significant capital investments to expand its production infrastructure. The company has expanded significantly at its Umm Al-Hawaya farm, with investment in new barns, technology, a plastic factory and bottling facility, and livestock. Baladna’s herd now consists of over 18,000 cows and milk production has doubled. Figures released by Baladna show that the program of investment has resulted in a substantial boost in sales revenue. The company’s revenues increased from an average of QAR 18 million per month in 2018 to an average of QAR 25 million per month in the first quarter of 2019 and QAR 36 million in the second quarter of 2019.

Baladna is now targeting further growth ambitions, and has outlined a vision to become the preferred brand for natural and fresh food and beverages. Dr. Kamel Abdallah, Chief Executive Officer of Baladna Q.P.S.C, commented: “Baladna’s strong sales growth indicates that our investment and long-term strategic ambitions are yielding compelling results. Baladna is one of Qatar’s greatest commercial success stories and I am tremendously proud of how our brand is continuing to captivate the Qatari market, enabling us to drive our vision to become Qatar’s best-loved brand for fresh dairy and beverages.”

The Company intends to continue BFI’s transformation by significantly expanding and diversifying its product offering. The company already boasts an expanding range of products to meet the requirements of increasingly health-conscious consumers looking for better-tasting, more nutritious dairy and juice products.

Development of the infrastructure on the dairy farm has allowed for a sizeable yet natural increase in the number of cows, and the completed dairy processing plant will increase the production capacity and range of available products. The initiatives will also result in higher yield of milk per cow leading to direct improvement in costs and competitiveness. This will allow the Company to support BFI as the primary dairy producer in Qatar. The Company has identified synergistic benefits that it envisages BFI will enjoy by moving from being a dairy company to a dairy and beverage company, through, among other things, juice production at BFI’s current facilities and further developing the existing packaging plant and water treatment facilities within BFI’s operations.

The juice production, which began in the first half of 2019, as well as the dairy operations, will both benefit from the intra-group water supply. Similar self-sufficiency is intended to be achieved through the packaging plant, and the plant’s production may be sufficient to create an external sales business for plastic bottles. The Company will also develop BFI’s synergistic production and sale of beef and compost. The company is now planning an IPO on the Qatar Stock Exchange, which will see Baladna Q.P.S.C incorporated as a public shareholding company which will hold 100% of the shares of BFI.

From 27 October 2019 until 7 November 2019, Qatari investors will be able to subscribe to shares in the Offering, the proceeds of which are intended to finance the company’s recent expansion.

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