Baladna, one of Qatar’s major dairy product manufacturers, has purchased an additional block of shares in Juhayna Food Industries, the Egyptian dairy company controlled by multimillionaire tycoon Safwan Thabet.
According to news reports, on June 26, the Qatari company acquired a block of 600,000 shares at a cost of EGP 7.4 million ($239,000). Over the past two years, Baladna has steadily increased its shareholding in Juhayna, accumulating a stake of more than 15 percent in the Egyptian company, making it the second-largest shareholder after Thabet.
In a stock-exchange filing on Fri., June 30, Baladna expressed its intentions to grow both within Qatar and overseas.
“Investment decisions are based on a thorough market analysis,” the filing stated. “The Egyptian market, with a population of over 100 million, represents a significant and promising food and beverage market. As the market leader, Juhayna is expected to benefit greatly from the market’s growth due to its strong distribution network.”
Juhayna, a publicly-listed company, specializes in the production and marketing of dairy and juice products. Established in 1983, it presently operates four production facilities.
In 2022, Juhayna reported revenue of EGP 11.36 billion ($368 million), a 29-percent increase compared to the previous year. The company’s net profit reached EGP 638 million ($20.6 million), a 21-percent year-on-year increase. During the first quarter of 2023, Juhayna experienced a significant 42-percent surge in revenue, reaching EGP 3.4 billion ($110.1 million), while its net profit more than doubled to EGP 339 million ($11 million).
Thabet, the founder of Juhayna Food Industries in 1983, transformed it into one of Egypt’s largest producers of dairy, yogurt, and juice. Thabet currently owns a 50.07-percent stake in Juhayna Food through his personal holdings and Pharon Investments Limited, his investment vehicle. The combined value of his shares is estimated at $187.8 million.
