Baladna (BLDN) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached QAR 595 million, up 15% year-over-year, with net profit surging 137% to QAR 100 million, driven by higher sales volumes, operational efficiencies, and market share gains.

• Q2 2024 revenue was QAR 282 million, with net profit at QAR 52 million, both up over 130% year-over-year.

• Market share in fresh milk surpassed 95%, UHT milk exceeded 90%, and overall market share reached 54.1%.

• Expanded product portfolio with high protein milk, Greek yogurt, and relaunched juice and Awafi lines; 25 new SKUs introduced.

• Algeria project progressing on schedule, with $3.5 billion investment and groundbreaking expected soon.

Financial highlights

• Gross profit margin improved to 24% from 20% year-over-year for H1 2024.

• EBITDA margin reached 33%, leading industry peers; H1 2024 EBITDA was QAR 196 million, up 24%.

• Free cash flow of QAR 198 million generated in H1 2024.

• Earnings per share for H1 2024 was QAR 0.053.

• Total assets as of June 30, 2024, stood at QAR 4.81 billion; shareholders’ equity at QAR 2.32 billion.

Outlook and guidance

• Positive outlook for the remainder of 2024, with expectations to maintain or improve margins and focus on product innovation, market share growth, and operational excellence.

• Algeria project is advancing as planned, expected to drive long-term shareholder value.

• Anticipates further improvement in margins due to commodity price stabilization and volume growth.