Baladna profit edges up 1.27%, board proposes 15% bonus shares

Summary

• Baladna's nine-month net profit rose 1.27% to 386.207 million riyals, filings on Qatar Stock Exchange showed.
• The board proposed 401,997,180 bonus shares after a rights issue lifted capital 25%.
• Earnings per share slipped to 0.169 riyals, as a wider share count dilutes shareholder returns.

The latest

Baladna posted a net profit of 386.207 million riyals for the first nine months of 2026, up 1.27% from 381.345 million riyals a year earlier, according to financial statements published on the Qatar Stock Exchange website on Tuesday, 27 October. The board proposed distributing bonus shares equal to 15% of current capital. Earnings per share fell to 0.169 riyals from 0.172.

Details

• The revenue line: Revenue rose 4% to 977.8 million riyals over the nine months, according to the company statement carried by The Peninsula. Third-quarter revenue reached 318.3 million riyals, a 7% increase, while third-quarter net profit came in at 21.8 million riyals.
• The margin story: Gross profit climbed 18% to 281.0 million riyals, lifting the gross margin to 29% from 25% a year earlier, the statement said. That margin expansion outpaced revenue growth, indicating the improvement came from cost or product mix rather than volume alone.
• The quality of earnings: Net profit includes unrealised gains of 234.4 million riyals from fair-value changes on equity investments, according to the company. Such gains are accounting adjustments rather than cash generated by operations, and they can reverse if the underlying share prices move the other way.
• The EBITDA gap: Earnings before interest, taxes, depreciation and amortisation rose just 1% to 559.9 million riyals, the statement said. The gap between 18% gross profit growth and 1% EBITDA growth points to higher costs below the gross line, which the company did not break down.
• The capital increase: Subscription to the rights issue of 535,996,240 shares was completed in full, raising capital 25% from 2,143,984,962 riyals to 2,679,981,202 riyals, according to the company. The fully covered subscription signals existing shareholders took up their entitlements.
• The bonus shares: The board proposed distributing 401,997,180 bonus shares at a ratio of 3 shares for every 20 held, equal to 15% of current capital. Capital would rise to 3,081,978,382 riyals, subject to approval by the ordinary and extraordinary general assemblies and regulators.
• The dilution effect: Earnings per share fell to 0.169 riyals from 0.172 even as net profit rose, a result of the larger share count following the rights issue. The proposed bonus distribution would expand the count further before the figures are restated.
• The Algeria project: Baladna said 59 water wells have been completed at its Algeria project, 32 irrigation pivots are operating and roughly 420 hectares have been planted. Construction of dairy farms and processing facilities has begun. No completion date or production start was announced.

Between the lines

The headline profit increase rests on a narrow base: with 234.4 million riyals of the nine-month result coming from unrealised fair-value gains on equity investments, and EBITDA up only 1%, the operating engine moved far less than the net figure suggests. Gross margin expansion to 29% is the clearer operational signal.

What's next

The bonus share distribution requires approval from the ordinary and extraordinary general assemblies and regulatory authorities before capital rises to 3,081,978,382 riyals. Full-year results and progress on the Algeria dairy farms are the next markers.

Source: QNA, The Peninsula