Zad Holding: to launch European bakery products

Doha / QA. (zhc) Zad Holding Company, formerly known as Qatar Flour Mills, is pursuing a number of strategic initiatives for improving performance including mergers, acquisitions and expanding its flour mill´s capacity, according to managing director Sheikh Nawaf bin Mohamed bin Jabor al-Thani.

He said to «The Peninsula» that in addition to the recent commissioning of the European bakery his company plans to increase the flour mill´s capacity to 600 tonnes a day, from the current 400 tonnes, by next year. «We are seeking new sources of revenue for the company as well as modernising the company´s plant and equipment so that we can tap into future opportunities», Sheikh Nawaf said.

About H1/2009 results, he said despite the global economic recession, his company posted a net profit of 46,33 million Riyal (QAR), almost equal to that earned during the same period last year. He said the profit was maintained due to the increase in the sale of flour and flour-based products in the local and export markets.

Zad Holding CEO Tarique Mohamed said that though there was a significant increase at the gross profit level, «we maintained the same net profit due to the reduction in the non-operating income and increase in general and administrative and selling and distribution expenses». Mohamed said the company has almost doubled the capacity of its Arabic bakery.

Sheikh Nawaf said the company «aims at creating new sources of revenue for maximising shareholders´ net worth through development of strategic operations, optimal allocation of management resources, focusing on innovation through creation of systems that are more flexible, scalable, cost effective, objectively measurable and independent». He said the company was also evaluating a few merger and acquisition proposals and green field projects in Qatar in the «fast moving consumer goods» industry segments (source).