Hello and welcome to Baladna. Please note that this call is being recorded. You will have the opportunity to ask questions to our speakers later on during the Q&A session. If you would like to ask a question by that time, please press star followed by the number one on your telephone keypad. I would like to hand the call over now to Shahan. Please go ahead.
Thank you, and hello, everyone. I want to welcome you to Baladna's Fourth Quarter and Fiscal Year 2025 Financial Results Conference Call. On this call from management, we have Saifullah Khan, Group CFO. As usual, we will conduct this call with first management reviewing the company's results, followed by a Q&A session. I will turn the call over now to Saifullah. Please go ahead.
Thank you, Shahan. Good afternoon, ladies and gentlemen. We are here to discuss Baladna results for full year and the fourth quarter ended 31st December 2025. My name is Saifullah Khan. I serve as a Group CFO of Baladna. Thank you all for taking time to join us today. The presentation material we already been shared in advance and are also available on our website, if you did not get. Before we begin, please note that today's discussion may include forward-looking statements based on current expectation and assumption. Actual results may differ due to various factors. 2025 was an exceptional and defining year for Baladna. We delivered record financial results and made significant progress across our international expansion strategy with an increasing contribution from our strategically diversified investment portfolio and overseas initiative.
This performance reflects the strength of our integrated business model and the impact of strategic decisions taken over recent years to expand beyond the domestic market and build a diversified international platform. Our geographic and sectorial diversification strategy is now clearly translating into tangible financial results. We close the year with strong momentum and enter the next phase of growth with the confidence and enhanced international visibility. Let me now take you through our financial performance full year. Revenue reached QAR 1,217 million, representing 11% growth year-on-year. Growth was driven by high volume across key channels led by HoReCa segment, which delivered 30% growth during this year. Profitability improved materially. EBITDA reached QAR 770 million with margin at 60%.
This reflects revenue growth alongside strong return from the strategically diversified investment portfolio and increasing contribution from our international investment and overseas operation, implementing as a part of our geographic and sectorial diversifications. Net profit reached QAR 540 million, increasing at 192% year-on-year basis, with margin of 42.6%, marking the highest level achieved by company to date. Earning per share increased QAR 0.252 compared to QAR 0.086 in five years. Overall, full year performance highlights the strength of our core operation, combined with the growing financial impact of our international expansion strategy. Turning specifically to the fourth quarter, which closed the year on a very strong note. Q4 revenue increased by 14% year-on-year basis to QAR 326 million, supported by high contribution from HoReCa segment, increased economic and visitor activity linked to FIFA Arab Cup Qatar 2025 in Qatar, and stable demand across core dairy categories.
Profitability in quarter four was particularly strong. Q4 EBITDA increased 127% year-on-year basis, with EBITDA margin reaching 66%, driven by strong operational performance alongside continued return from a strategically diversified investment portfolio. Q4 net profit increased by 260% year-on-year basis, driven by higher sales volume and investment returns. Quarter-on-quarter movement reflects normalization of investment gains compared to prior quarters, while underlying operating performance remains solid. Moving to cash flows and our balance sheet position. Baladna continued to generate strong operating cash flows during the year, supported by high profitability and the contribution from diversification of initiatives. Operating cash flows enable the company to fund capital expenditures, strategic investment and finance costs while maintaining the solid liquidity position. Cash utilization primarily reflects investment activity aligned with the international expansion project and long-term growth initiatives.
Overall, the balance sheets remain strong and provide flexibility to support continued execution of our international growth strategy. Let me briefly touch on our operational performance across the business during this year. Operationally, performance remains steady. During the year, we expanded to 167 SKUs and increased our sale reach to more than 149 routes, reinforcing our leading market position in Qatar and supporting broader commercial growth. HoReCa channel was a key growth driver, particularly in the second half of the year, benefiting from the increased activity and the strong relationship with the hotels, restaurants, and the catering customer. Across the domestic business, demand in the fourth quarter was supported by increased activity associated with the FIFA Arab Cup 2025, alongside continued portfolio development across core dairy and juice categories. Let me turn to our international expansion strategy, which remains central to our long-term growth plans.
We began the execution of our large-scale international platform in Algeria, which represents the first cornerstone of our expansion beyond Qatar on a greenfield project. During 2025, the integrated agri industrial project in Algeria advanced from planning phase into the active on-ground development with a strong execution across multiple work streams. Key milestones including securing 126 drilling permits, completing 45 wells, installing irrigation and pivot systems, and successfully initiating the first crop cycle. Industrial development also progressed across major infrastructure and engineering components, supporting the phase development plan towards first milk production by end of 2027. Algeria represents the foundation of our scalable international growth model and a key driver of long-term value creation. Building on this foundation, we progress into Syria, where preparatory activities continue for the planned integrated industrial project economics, encompassing arable farming, dairy, juice processing, plastic packaging and warehousing.
In parallel exports through our local distributor partner, we have established an on-ground commercial presence enabling early market entry while developing planning continue. Together, Algeria, Syria, Egypt represent the initial phases of our broader international expansion strategy as we continue to evaluate additional markets in line with our long-term vision of expanding from Qatar to the world. Finally, a brief update on our shareholders. During the year, shareholders approved a 24% increase in the company paid up capital through a rights issue subject to regulatory approval. This strengthens our capital base and supports the continued execution of our international expansion strategy. In summary, 2025 was a record and strategically transformative year for Baladna. We delivered exceptional financial performance, achieved a strong profitability and cash generation, and made substantial progress in building our international platform.
Looking ahead, our priorities remain clear. We will continue to execute our international projects with discipline, expand our diversified investment platform, and strengthen our position both domestically and across regional markets. With strong momentum and a clearly defined international roadmap, we are confident in Baladna ability to build on this success and create long-term sustainable value. Thank you for your today call joining. Now I will open the session for any question and answers. Please go ahead.
Yes, ma'am. I would like to remind everyone that in order to ask a question, please press star followed by the number one on your telephone keypad. Once again, if you would like to ask a question, please press star followed by the number one on your telephone keypad. Your first question comes from the line of Mohit C with Lesha Bank. Please go ahead.
Yeah. Hi. Thank you for the presentation. I have a couple of questions. First is regarding the, I think you have a net write-off of around QAR 36 million. So if you can just help us understand what that is and where is it coming from. Second is on the investment portfolio that you have. What is the outlook on that front? Do you foresee continued investments there, or do you see realizing some gains and using that in the core operations? These are the two questions from my side. Thank you.
Thank you. For your first question, what you have seen in our P&L on the face, we write off some past project advances. This is related to our last 5- 6 years where Baladna was doing all the business development in the different countries. We spent a lot of money on these projects where we were trying to secure the successfully make this for a company, which can give us some positive, but it couldn't fly that project because we didn't select that project because of many reasons. But these are all related to feasibility, our traveling, on-the-ground study. These expenses pertaining to that relevant hub. Now we are entering into the very clean, focused approach in projects, like I mentioned, in my speech, that all the past projects, we got the opportunity. We have a high profitability from our investments.
We write off during this year to get the opportunity. This was a one-time transaction to close all the costs that we have spent on the business development. This is answer to your first question. Second question, I think, this is as per our strategy, we are exploring other opportunities. Yes, we definitely will be looking into these options that to materialize some of investment and use in other investment where we can have high return for our investors. This is option is under our consideration. At this stage, our investments are still giving us positive return, and we are expecting, during this year also, some positive returns from these investments. I hope your question is answered.
Yes. Thank you so much.
Once again, if there are others who would like to ask a question, simply press star followed by the number one on your telephone keypad. Since there are no further questions, I will turn back the call now to Shahan. Please go ahead.
Okay. If there are no more questions, we can wrap up this call. I want to thank Saifullah for giving us an update for 2025, and we will pick this up again the following quarter. Thank you.
Thank you everyone. Have a good time.
Thank you, everyone, and that concludes today's call. You may now all disconnect. Have a nice day ahead.
Thank you. Thank you.