Baladna Q.p.s.c · QSE:BLDN
Baladna Q.p.s.c — Q2 2023 Earnings Presentation
35 slides from Baladna Q.p.s.c's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Financial Results Presentation
BALADNA Q.P.S.C. Q2 2023 Financial Results Presentation 10 August 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 second quarter of 2023, Baladna achieved a revenue of QAR 262 million and net profit of QAR 22 million. This represents a revenue and net profit growth of 7% and 3% respectively, compared to the second quarter of 2022 ▪ Additionally, Baladna achieved a revenue of QAR 517 mi
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 5 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 June 2022 June 2023 YoY growth Overall market share ▪ Increase in market share driven by a growth 1 50.3% 51.4% 1% in sale volumes across the majority of product categories Source: AC Nielsen Market share reflects MAT 12 months Total no. o
Slide 9: Market Segmentation (1/3)
Operational and Commercial Update Market Segmentation (1/3) Fresh milk 94% ▪ YoY market share growth: +5% 89% 94% ▪ Retained #1 position Market share Q2 22 Q2 23 UHT milk 85% ▪ YoY market share growth: +2% 83% 85% ▪ Retained #1 position Market share Q2 22 Q2 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% 46% 46% 44% ▪ Remained the market leader Market share Q2 22 Q2 23 Labneh ▪ YoY market share growth: -4% 46% 50% 46% ▪ Remained the market leader Market share Q2 22 Q2 23 Cheese 27% ▪ YoY market share g
Slide 11: Market Segmentation (3/3)
Operational and Commercial Update Market Segmentation (3/3) Creams ▪ YoY market share growth: +13% 60% 60% 47% ▪ Achieved a market leading position Market share Q2 22 Q2 23 Juice 20.2% ▪ YoY market share growth: +0.5% 19.7% 20.2% ▪ Remains a significant growth opportunity Market share Q2 22 Q2 23 So
Slide 12: Introduction of new SKUs over H1 2023
Operational and Commercial Update Introduction of 9 new SKUs over H1 2023 ▪ Baladna is constantly looking to enhance its product mix by adding additional products and optimizing its portfolio ▪ Over the course of H1 2023, Baladna has introduced 9 new products and further optimized its product portfo
Slide 13: Financial Performance
Financial Performance 13
Slide 14: H1 2023 Key Financial Highlights
H1 2023 Financial Performance Key Financial Highlights H1 2022 H1 2023 YoY growth Revenue Baladna achieved higher sale volumes and 1 QAR 484m QAR 517m 7% recorded a YoY revenue growth of 7% due to market share gains across product categories Gross Profit Increase in sales volumes coupled with previo
Slide 15: Q2 2023 Key Financial Highlights
Q2 2023 Financial Performance Key Financial Highlights Q2 2022 Q2 2023 YoY growth Revenue Baladna achieved higher sale volumes and 1 QAR 245m QAR 262m 7% recorded a YoY revenue growth of 7% due to market share gains across product categories Gross Profit Increase in sales volumes coupled with previo
Slide 16: Financial performance development
Financial Performance Financial performance development Revenue (QAR m) Net profit (QAR m) +4% +32% -12% -48% 42 253* 254 262 262 245 198 25 22 22 22 20 Q4 2022 Q1 2023 Q2 2023 Q2 2021 Q2 2022 Q2 2023 Q4 2022 Q1 2023 Q2 2023 Q2 2021 Q2 2022 Q2 2023 NP 9% 8% 8% 21% 9% 8% QoQ YoY margin QoQ YoY ▪ Stro
Slide 17: Net profit bridge for H1 2023
Net profit bridge for H1 2023 Growth in the top line did not result in an increase in net profit due to the increase in commodity prices and increased finance cost Net profit bridge – H1 2023 QAR million 17
Slide 18: Higher material costs resulted in decreased profitability margins
Higher material costs resulted in decreased profitability margins Margins positioning compared to regional peers H1 2023 EBITDA margin (For the period from 01 January 2023 to 30 June 2023) Median: 17.0% 30.6% 27.3% 15.1% 15.7% 19.7% 17.0% 10.2% KSA Peer KSA Peer KSA Peer UAE Peer KSA Peer Egypt Peer
Slide 19: Revenue by channel
Revenue by channel Growth recorded in all channels Contribution by Channel (H1 2023) Growth by Channel Channel wise revenue contribution (in percentage) H1 2023 channel wise growth (vs H1 2022) Growth (in percentage) Growth (QAR) 20% 4% 14.8m HORECA 9.8% Total revenue QAR 517m 32% Retail-KA 4.6% 10.
Slide 20: Revenue composition and growth – Year-on-year
Financial Performance Revenue composition and growth – Year-on-year Revenue composition (QARm) +7% 517 484 +5% +8% +0% +13% 121 127 114 124 +0% +16% +14% +7% 83 83 +10% +18% 40 45 51 34 30 34 24 23 22 24 8 9 3 3 % of total 25% 25% 24% 24% 17% 16% 7% 8% 6% 6% 5% 5% 9% 9% 2% 2% 1% 1% 4% 4% 100% 100% r
Slide 21: Cashflow management for the H1 2023 period
Financial Performance Cashflow management for the H1 2023 period Cashflow (QARm) (1.0) 7.1 (12.8) Cumulative balance 26 142 49 48 (20) (13) ▪ Baladna continues to generate robust cash from operations as a result of the growth in revenues ▪ Efficient working capital management, mainly in the form of
Slide 22: Financial position as at June 2023
Financial Performance Financial position as at 30 June 2023 Total assets (QAR million) Total shareholders’ equity and liabilities (QAR million) Jun-23 Dec-22 Growth Jun-23 Dec-22 Growth Fixed Assets 3,201 3,128 2% Islamic financing 1,597 1,634 -2% Biological Assets 204 220 -7% Other Non-Current Liab
Slide 23: Shareholder Information
Shareholder Information 23
Slide 24: Shareholder information (as at June 2023)
Shareholder Information Shareholder information (as at 30 June 2023) General information Share price versus DSM 1 January 2023 to 30 June 2023 (rebased to 100) 110 100 ▪ Company name Baladna Q.P.S.C. (7.0%) 90 (7.2%) ▪ Ticker (QE) BLDN 80 ▪ Market cap: QAR 2.7b 70 ▪ Common shares outstanding 1.9b 60
Slide 25: Management Outlook 2023
Management Outlook 2023 25
Slide 26: Management outlook for H2 2023
Management Outlook Management outlook for H2 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 Positive indications of cost inflation nor
Slide 27: Appendix
Appendix 27
Slide 28: Profit and loss statement – H1 2023
Appendix Profit and loss statement – H1 2023 QAR m H1 2023 H1 2022 Change Revenue 516.7 100% 484.0 100% 7% Cost of revenue (406.3) -79% (384.4) -79% 6% Gross profit 110.3 21% 99.5 21% 11% Other income 58.9 11% 58.6 12% 1% (Loss)/Income from Investment Securities 2.2 - (10.5) -2% - Dividend income 2.
Slide 29: Profit and loss statement – Q2 2023
Appendix Profit and loss statement – Q2 2023 QAR m Q2 2023 Q2 2022 Change Revenue 262.2 100% 244.7 100% 7% Cost of revenue (206.1) -79% (196.5) -80% 5% Gross profit 56.2 21% 48.1 20% 17% Other income 28.9 11% 29.0 12% - (Loss)/Income from Investment Securities 1.7 1% (5.4) -2% - Dividend income 2.3
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 Chairman Vice Chairman Managing Director Nasser Bin Ahmad Al-Thani (Minister of Environment and Climate Change) Board Member Hamad Bin Abdullah Bin Mazen Alsbeti Aidan Tynan Khalid Al-Attiya
Slide 32: Senior Management Team
Appendix Senior Management Team Ramez Al-Khayyat Malcolm Jordan Saifullah Khan Managing Director Chief Executive Officer Chief Financial Officer Paul Kenny David Stuart Julian Marcolini GM - Sales GM - Manufacturing GM - Quality Nasser Al Maslamani Firas Khalil Francis Higgins Group HR Director Info
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®