Chairman
Dear shareholders
May the peace, blessings and mercy of Allah be upon you.
As Chairman of the Board of Directors of Baladna QPSC, it gives me great pleasure to present the Annual Report for 2023, which provides a detailed account of our financial performance and advancements achieved in the year under review.
In the 2022 Annual Report, I referred to the Company’s aim of becoming a QR 1 billion business. I am proud to report that Baladna has achieved this watershed accomplishment. We will continue delivering value to all our stakeholders, while also preparing for future milestones.
In our 2023 financial year, the Company generated revenues of QR 1,057 million, a remarkable achievement for a business that was established in only 2017. Our performance in the year under review is a gratifying illustration of how we are delivering value every day to our customers, consumers and shareholders and contributing to Qatar’s strategic national priorities.
Meaningful improvements across the entire business – from new products to exceptional fiscal management – translated into a solid double-digit bottom-line increase of 36% to QR 110 million
Our achievements were made possible by remaining committed to our vision of becoming the most trusted brand of nutritional foods and healthy beverages in Qatar. In 2023, we made important gains in this regard, securing record market shares and our highest ever brand equity, thanks to the continuing expansion of our product portfolio to meet the evolving needs of our valued consumers with new delicious and healthy dairy and juice products.
Advancing our international agenda
An important pillar of future sustainable growth will be our international operations and, in 2023, Baladna furthered plans for its forthcoming Algerian project with the Government of Algeria to establish milk production facilities. We anticipate this project will deliver significant shareholder value and mark another milestone in Baladna’s global growth journey.
During the year, Baladna took a substantial step forward in its strategic initiative to grow its footprint beyond Qatar, and to introduce our sustainable, integrated farming model to new markets. Our initial foray into the Egyptian market in 2022 – with the purchase of a minority interest in dairy and juices business Juhayna Food Industries – was followed by an additional purchase in 2023, taking our shareholding to 15% and paving the way for this to grow to a more substantial position.
New management structure to drive growth
In early 2023, Mr. Malcolm Jordan was appointed as CEO of Baladna and given a mandate to steer the business through the next phase of local and international expansion. Following his return to Baladna – he led the Company through the IPO and the pandemic – his proposal to streamline the senior management structure to drive growth more efficiently was approved by the Board.
The CEO is now supported by a team of 5 direct reportees who head up Finance, Operations, Commercial, Farming and Corporate Services. This structure has freed up the next layer of senior managers to focus on optimising operational delivery and efficiencies. The Board of Baladna is confident these changes will enable the Company to accelerate its growth ambitions at home and abroad by expediting crucial decision-making processes.
A winning formula
Baladna was proud to once again be the recipient of the region’s most sought-after accolade in investor relations reporting, marking the third consecutive year of this achievement. At the 15th Middle East Investor Relations Association (MEIRA) awards in 2023, Baladna came first and second in the digital and print categories respectively for outstanding investor relations reporting. We remain committed to our excellence in reporting to our investors and shareholders in the years ahead.
Sustainability gains
As a responsible corporate citizen, Baladna is cognisant of its obligation to act with care towards the environment and communities in which we operate. Accordingly, we take very seriously our commitment to pursue continuous improvement in terms of resource management, wastage and our carbon footprint.
Several parts of the business developed successful improvements during 2023. A new pilot project in our farming business achieved substantial savings in water consumption, and this will now be implemented across all our dairy barns in 2024. Our sales and distribution division delivered more products using the same resources as last year and even reduced its mileage. In addition, a programme to cut vehicle idling reduced our carbon emissions by 28% or 300 tons of CO₂ by the end of the year.
Making advances in ESG every day
At Baladna, we recognise the imperative to foster sustainability and uphold ethical practices. Equally, we are driven by the need to contribute positively to the communities where we operate, which motivates our unwavering dedication to integrating environmental, social and corporate governance (ESG) considerations into our business strategy, operations and decision-making processes.
Environmental stewardship lies at the heart of our efforts. We acknowledge the urgent need to mitigate climate change and minimise our ecological footprint.
Our commitment to social responsibility extends beyond mere compliance; it encompasses a genuine desire to create meaningful impact. We prioritise the wellbeing of our employees, strive for diversity and inclusion, and actively engage with local communities to foster growth, empowerment, and resilience.
Governance forms the backbone of Baladna’s corporate values. Upholding the highest standards of integrity, transparency and accountability is non-negotiable. We are dedicated to fostering a culture of ethical behaviour, robust governance practices and effective risk management to maintain the trust bestowed upon us by our stakeholders.
This report serves as a testament to our ongoing journey towards sustainability and responsible corporate citizenship. It reflects our commitment to environmental, social, and corporate governance principles – core pillars that underscore our responsibility as a corporation – and echoes the collaborative efforts of our dedicated teams, the guidance of our stakeholders, and our unwavering commitment to making a positive difference.
Delivering value, every day, in 2024
The upcoming fiscal period will be characterised by our unremitting focus on growth in terms of market-leading products, higher revenues and profits, expansion into new and existing territories and, not least, our contribution to Qatar’s food security and economy
Every Baladna division has ambitious plans to innovate, develop and improve in 2024, with the potential to deliver far-reaching benefits across the entire Company. Combined with promising international prospects and a strong balance sheet, Baladna stands on the threshold of a new era as a QR 1 billion business with a successful model to offer to nations wishing to follow Qatar’s food security initiatives.
Acknowledgements
Baladna is an organisation with many stakeholders: customers, consumers, suppliers, investors, and the strategic shareholders, among others. Each group maintained its trust and confidence in our Company in 2023, playing an indispensable role in our success. I speak on behalf of everyone at Baladna in expressing our appreciation of their continued support.
It is my privilege to lead a talented Board of Directors, whose commitment to Baladna’s prosperity played such a vital role in 2023. I would like to thank each one for their insightful direction and energetic contribution.
My thanks go to our leadership and the entire Baladna team, which led the Company to an important result in 2023 and laid foundations for our next phase of growth. Their unstinting efforts have brought us closer to our goal of becoming Qatar’s most trusted food and beverage brand. We remain indebted to your loyalty, innovative spirit, and commitment to reaching ever greater heights of performance.
