Qatari businessman Moutaz Al-Khayyat acquires $18.2 million shares in Egypt-based consumer goods manufacturer

In a deal worth $18.2 million, Baladna, an agricultural company led by Qatari businessman Moutaz Al-Khayyat, has finalized the acquisition of a significant stake in Juhayna Food Industries, an Egyptian dairy, juice and culinary food maker, in line with its diversification and expansion plans.

Juhayna Food Industries is a market leader in the production, processing and packaging of dairy, juice and culinary goods.

The company operates in five business segments in the food-processing industry and agricultural segment under the leadership of Safwan Thabet, the Egyptian multimillionaire businessman who founded the firm in 1983.

Baladna’s acquisition of a total five-percent stake in Juhayna Food Industries, equivalent to 47.11 million shares, through a series of transactions totaling EGP285.80 million ($18.2 million), is consistent with the company’s objective to develop its food and beverage businesses outside of Qatar.

The $18.2-million purchase will enable the Al-Khayyat-led firm to capitalize on the significant value opportunities in Egypt’s food-processing sector and agricultural divisions, as well as its planned expansion in Juhayna’s activities.

Juhayna reported a 27.7-percent rise in consolidated net profit in the first nine months of 2021, from EGP384 million ($24.47 million) in 2020 to EGP490 million ($31.22 million) in 2021.

The significant increase in its profitability during the period under review can be attributed to a boost in its revenue, which was driven by strong demand growth and increased pricing as a result of the diversity of its product range.

In addition to increasing sales from EGP5.62 billion ($358.12 million) in 2020 to EGP6.52 billion ($415.47 million) in the first nine months of 2021, its profitability benefited greatly from operational efficiency measures and operational leverage as cost and credit risk were reduced.

As a result of its strong performance in 2021 and its robust results in 2020, the board approved a cash dividend distribution of EGP0.20 ($0.01274) per share to shareholders for the 2020 financial period.

Shares in Juhayna Foods Industries were trading at EGP5.7 ($0.362) as of press time on March 8, 2.73-percent lower than their opening price on the local bourse yesterday, March 7.

The current share price gives the company a market valuation of EGP5.37 billion ($341.1 million) on the Egyptian Stock Exchange, while Thabet’s 50.07-percent stake is valued at EGP2.69 billion ($170.9 million).