Baladna (BLDN) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached QAR 331 million, up 6% year-over-year, driven by strong evaporated milk sales, new SKUs, and additional Ramadan sales days.

• Net profit rose 21% year-over-year to QAR 58.3 million, with a net profit margin of 18%, supported by higher revenue, cost savings, and operational efficiencies.

• EBITDA increased 19% year-over-year to QAR 115 million, with margin improving to 35% from 31% last year.

• Launched 11 new SKUs across yogurt, Greek yogurt, drinks, and high-protein milk, expanding the product portfolio.

• Advanced the Algeria project with company establishment, a 20-year offtake agreement, and groundwork underway.

Financial highlights

• Gross profit increased to QAR 87 million, up 22% year-over-year.

• Operating cash flows remained robust, supported by higher sales and a QAR 105 million government subsidy, though partially offset by increased CapEx and finance costs.

• Approved bonus share issuance of one share for every 19 shares, totaling 100 million shares, increasing share capital to QAR 2 billion.

• EPS rose to QAR 0.030, up 19% year-over-year.

• Total assets grew to QAR 5.06 billion as of March 31, 2025.

Outlook and guidance

• Strategy focuses on growing key product categories, increasing market share, product innovation, and international expansion.

• Continued investment in digital transformation, automation, and sustainability initiatives.

• Algeria project expected to begin full production and revenue generation in 2028.

• The group expects exemption from Pillar Two tax requirements but continues to monitor new regulations.