In the food and beverage industry, Baladna, the Qatar-based dairy group, has made another strategic move by acquiring additional shares in Egypt’s Juhayna Food Industries. This acquisition has increased Baladna’s stake in Juhayna from 10% to 15.03%, making it the majority shareholder with a strong foothold in the market.
With an investment of E£7.4m ($239,000), Baladna aims to expand its presence not only within Qatar but also overseas. The decision to invest in Juhayna is backed by a thorough market analysis, as Egypt’s market for dairy and soy food is expected to grow significantly, reaching a value of $5.07bn by 2022.
Juhayna Food Industries, a leading player in the industry, specializes in the production and marketing of dairy and juice products. With four well-established production facilities, the company has demonstrated strong financial performance. In 2022, Juhayna recorded a revenue of E£11.36bn, a substantial increase of 29% compared to the previous year. Their net profit also grew by 21% year on year, reaching E£638m.
In the first quarter of 2023, Juhayna continued its impressive growth trajectory, reporting a 42% increase in revenue to E£3.4bn. Their net profit more than doubled, reaching E£339m. Being the market leader, Juhayna is well-positioned to benefit from the expanding Egyptian market, given its extensive distribution network and strong brand reputation.
Baladna, with its headquarters north of Doha, operates three factories specializing in dairy products, juices, and packaging. Although the company experienced a decline in net profit in 2022, dropping by almost 40% to QR80.6m, it still achieved a 27.5% increase in revenue to QR985.6m.
In the first quarter of 2023, Baladna’s revenue continued to grow, rising by 6.3% to QR254.4m. However, their net profit saw a decrease of over 20% compared to the corresponding period in the previous year, amounting to QR20m. Despite this, Baladna remains a key player in the market, with its recent partnership announcement with Groupe Bel to produce The Laughing Cow cheese in Qatar reinforcing its commitment to expansion and diversification.
