Baladna Q.p.s.c · QSE:BLDN
Baladna Q.p.s.c — Q3 2023 Earnings Presentation
35 slides from Baladna Q.p.s.c's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Financial Results Presentation
BALADNA Q.P.S.C. Q3 2023 Financial Results Presentation 01 November 2023
Slide 2: Disclaimer
Disclaimer This presentation is made only to, and is directed only at, persons to whom such a presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents Information contained in this prese
Slide 3: Table of contents
Table of contents Key messages 4-6 Operational and commercial update 7 - 12 Financial performance 13 - 22 Shareholder information 23 - 24 Management outlook 2023 25 - 26 Appendix 27 - 32 3
Slide 4: Key Messages
Key Messages 4
Slide 5: Key Messages
Key Messages ▪ During the third quarter of 2023, Baladna achieved a revenue of QAR 256 million and net profit of QAR 22 million. This represents a revenue and net profit growth of 14% and 178% respectively, compared to the third quarter of 2022 ▪ In the first nine months of 2023, Baladna achieved a
Slide 6: Key investment highlights
Key Messages Key investment highlights Excellent product Leader in the Dairy and Strong financial Strategic shareholder innovation and consumer Identified growth enablers Beverages sector in Qatar performance and position support insights Leading market position across 6 Continuously enhancing produ
Slide 7: Operational and Commercial Update
Operational and Commercial Update 7
Slide 8: Key operational highlights
Operational and Commercial Update Key operational highlights Q3 2022 Q3 2023 YoY growth Overall market share ▪ Increase in market share driven by a growth 1 51.0% 51.5% 0.5% in sale volumes across the majority of product categories Source: AC Nielsen Market share reflects MAT 12 months ▪ Portfolio e
Slide 9: Market Segmentation (1/3)
Operational and Commercial Update Market Segmentation (1/3) Fresh milk 95% ▪ YoY market share growth: +5% 90% 95% ▪ Retained #1 position Market share Q3 22 Q3 23 UHT milk 86% ▪ YoY market share growth: +2% 84% 86% ▪ Retained #1 position Market share Q3 22 Q3 23 Laban 49% ▪ YoY market share growth: +
Slide 10: Market Segmentation (2/3)
Operational and Commercial Update Market Segmentation (2/3) Yoghurt ▪ YoY market share growth: +2% 47% 47% 45% ▪ Remained the market leader Market share Q3 22 Q3 23 Labneh 51% ▪ YoY market share growth: -8% 43% 43% ▪ Remained the market leader Market share Q3 22 Q3 23 Cheese 28% ▪ YoY market share g
Slide 11: Market Segmentation (3/3)
Operational and Commercial Update Market Segmentation (3/3) Creams ▪ YoY market share growth: +8% 59% 51% 59% ▪ Achieved a market leading position Market share Q3 22 Q3 23 Juice ▪ YoY market share growth: 0% 20% 20% 20% ▪ Remains a significant growth opportunity Market share Q3 22 Q3 23 Source: AC N
Slide 12: Introduction of new SKUs over the first nine-months of 2023
Operational and Commercial Update Introduction of 16 new SKUs over the first nine-months of 2023 ▪ Baladna is constantly looking to enhance its product mix by adding additional products and optimizing its portfolio ▪ Over the course of the first nine-months of 2023, Baladna has introduced 16 new pro
Slide 13: Financial Performance
Financial Performance 13
Slide 14: Financial Performance YTD September 2023
Financial Performance YTD September 2023 Key Financial Highlights YTD. 2022 YTD. 2023 YoY growth Revenue Increase in sales volumes due to capitalization on favorable market conditions coupled with 1 QAR 709m QAR 773m 9% price increases resulted in growth of revenue by 9% Gross Profit In addition to
Slide 15: Financial Performance Q3 2023
Financial Performance Q3 2023 Key Financial Highlights Q3 2022 Q3 2023 YoY growth Revenue Increase in sales volumes due to capitalization on favorable market conditions coupled with 1 QAR 225m QAR 256m 14% price increase resulted in revenue growth by 14% In addition to the positive impact on revenue
Slide 16: Financial performance development
Financial Performance Financial performance development Revenue (QAR m) Net profit (QAR m) +1% +41% +11% +38% 262 256 256 22 22 22 254 20 225 182 16 8 Q1 2023 Q2 2023 Q3 2023 Q3 2021 Q3 2022 Q3 2023 Q1 2023 Q2 2023 Q3 2023 Q3 2021 Q3 2022 Q3 2023 NP 8% 8% 9% 9% 4% 9% QoQ YoY margin QoQ YoY ▪ Strong
Slide 17: Net profit bridge YTD September 2023
Net profit bridge YTD September 2023 The increase in selling price and volume, along with the normalization of commodity prices and finance costs resulted in an increased net profit for the first nine-months period of 2023 Net profit bridge – YTD Sept. 2023 QAR million 17
Slide 18: Margins positioning compared to regional peers
Higher finance costs and depreciation resulted in decreased profitability margins against peers Margins positioning compared to regional peers YTD 2023 EBITDA margin (For the period from 01 January 2023 to 30 September 2023) Median: 14.3% 24.9% 29.8% 14.3% 14.2% 18.5% 7.5% 11.9% KSA Peer KSA Peer KS
Slide 19: Revenue by channel
Revenue by channel Growth recorded in all channels Contribution by Channel (YTD September 2023) Growth by Channel Channel wise revenue contribution (in percentage) YTD Sept. 2023 channel wise growth (vs YTD Sept. 2022) Growth (in percentage) Growth (QAR) 20% 3% 29.2m HORECA 13.1% Total revenue QAR 7
Slide 20: Revenue composition and growth – Year-on-year
Financial Performance Revenue composition and growth – Year-on-year Revenue composition (QARm) +9% +7% +10% 709 773 +6% +18% 181 193 -4% 184 +16% +10% 167 +9% 121 +15% +15% 115 60 64 75 51 47 52 32 35 35 34 12 14 4 5 % of total 25% 25% 24% 24% 16% 16% 7% 7% 7% 7% 5% 5% 9% 10% 2% 2% 0% 0% 5% 4% 100%
Slide 21: Cashflow management for the first nine-months of 2023
Financial Performance Cashflow management for the first nine-months of 2023 Cashflow (QARm) 16.1 2.3 (15.9) Cumulative balance 141 193 112 (34) (18) (16) ▪ Baladna continues to generate robust cash from operations as a result of the growth in revenues ▪ Efficient working capital management, mainly i
Slide 22: Financial position as at September 30, 2023
Financial Performance Financial position as at September 30, 2023 Total assets (QAR million) Total shareholders’ equity and liabilities (QAR million) Sept-23 Dec-22 Growth Sept-23 Dec-22 Growth Fixed Assets 3,199 3,128 2% Islamic financing 1,624 1,634 -1% Biological Assets 205 220 -7% Other Non-Curr
Slide 23: Shareholder Information
Shareholder Information 23
Slide 24: Shareholder information (as at September 2023)
Shareholder Information Shareholder information (as at 30 September 2023) General information Share price versus DSM 1 January 2023 to 30 September 2023 (rebased to 100) 110 100 ▪ Company name Baladna Q.P.S.C. (5.4%) 90 ▪ Ticker (QE) BLDN (17.1%) 80 ▪ Market cap: QAR 2.4b 70 ▪ Common shares outstand
Slide 25: Management Outlook Q4 2023
Management Outlook Q4 2023 25
Slide 26: Management outlook for Q4 2023
Management Outlook Management outlook for Q4 2023 Product Bringing new products to the market is at the heart of Baladna’s strategy as the company aims development to continue its product innovation and introduce new products to capture greater market share Baladna continues to uphold its commitment
Slide 27: Appendix
Appendix 27
Slide 28: Profit and loss statement – YTD September 2023
Appendix Profit and loss statement – YTD September 2023 QAR m YTD Sept 2023 YTD Sept 2022 Change Revenue 772.6 100% 708.6 100% 9% Cost of revenue (610.7) -79% (571.0) -81% 7% Gross profit 161.9 21% 137.6 19% 18% Other income 87.8 11% 87.5 12% 0% Gain/(loss) from Investment Securities 2.3 0% (12.6) -
Slide 29: Profit and loss statement – Q3 2023
Appendix Profit and loss statement – Q3 2023 QAR m Q3 2023 Q3 2022 Change Revenue 255.9 100% 224.7 100% 14% Cost of revenue (204.4) -80% (186.6) -83% 10% Gross profit 51.6 20% 38.1 17% 35% Other income 28.9 11% 29.0 13% 0% Gain/(loss) from Investment Securities 0.2 0% (2.0) -1% -108% Dividend income
Slide 30: Company Profile
Appendix Company Profile Our purpose Product range To ensure healthy, natural food and beverages that delight our customers and contribute to the food security of Qatar. Who we are Established in 2014, Baladna is Qatar’s leading dairy and beverage company, with a diversified product offering, world-
Slide 31: BoD Members
Appendix BoD Members ` ` ` Moutaz Al-Khayyat Mohammed Badr Al Sada Ramez Al-Khayyat His Excellency Sheik Faleh Bin Group Chairman Vice Chairman Board Member/ Nasser Bin Ahmad Al-Thani Managing Director (Minister of Environment and Climate Change) Board Member Hamad Bin Abdullah Bin Mazen Alsbeti Aid
Slide 32: Senior Management Team
Appendix Senior Management Team Ramez Al-Khayyat Malcolm Jordan Saifullah Khan Board Member / Managing Director Chief Executive Officer Chief Financial Officer Paul Kenny Nasser Al Maslamani Julian Marcolini Chief Commercial Officer Chief Corporate Services Officer Chief Operations Officer 32
Slide 33: Glossary
Appendix Glossary EBITDA Earnings Before Interest, Tax, Depreciation and Amortization EPS Earnings Per Share HORECA Hotels, Restaurants and Catering NP Net Profit NPD New Product Development SKU Stock Keeping Unit UHT Ultra-High Temperature 33
Slide 34: J V] = “34
J V] = “34
Slide 35: Thank you
THANK YOU “& BALADNA®