The company had announced the plan to set up evaporated milk processing factory in 2021.
“The most significant factor in our manufacturing progress for 2021 is the construction of the evaporated milk factory which will be up and running in 2023,” said Piet Hilarides, CEO of Baladna in the latest Annual Report.
In April last year, Baladna Board of Directors had approved plans to establish an evaporated milk processing factory and extending current facilities for a butter processing line facility in Qatar.
The company had taken this decision as both product segments in Qatar are dominated by imported brands. The company looked at this situation to be an opportunity to establish its products to become the market leader in this category.
“During 2021, Baladna started investing in new factory expansions to produce evaporated milk and sterilised cream. These investments have the potential to drive the revenue growth and profitability in the coming years,” said Saifullah Khan, CFO of Baldna in the Annual Report.
“The foundations we laid in 2021 pave the way for many exciting new avenues as we manufacture new products and enter new international markets,” said Piet Hilarides in the Annual Report. “With the opportunities to diversify even further we can raise our market share and increase what is effectively the established brand of Qatar’s dairy and beverage sector. We feel confident about 2022,” he said.
“The FIFA World Cup 2022 will be a great opportunity for us to both increase our sales in the short- term and promote the brand to an international audience with the possibility of longer term benefits,” he said.
In order to mitigate inflationary concerns, Baladna focused on increasing sale volumes through increasing its market share in most of the categories and focusing more on Horeca channels.
Furthermore, Baladna enhanced operational efficiencies, in particular, managing its herd, resulting in a higher milk yield of 39.3 liters per day per cow in the first quarter of 2022 compared to 38.4 liters in the first quarter of 2021. Additionally, efficiencies in the manufacturing process, reduction in sales wastage through improved controls and systems as well as cost control of overheads.