Kuwait, May 10, 2017 — Mezzan Holding KSC, one of the largest manufacturers and distributors of food, beverage, FMCG and pharmaceutical products in the Gulf, today announced the company’s financial results for Q1 2017. Quarterly revenue increased to KD57.5 million, representing a 3.4% increase on the same period in 2016 and the highest quarterly revenue in the company’s history. Net profit was KD5.3 million up 2.4% for the quarter.
- Revenue: KD 57.5 million, up 3.4%
- Net Profit: KD 5.3 million, up 2.4%
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said: “Performance for Q1 was in line with our expectations with Revenue growth of 3.4%, driven by strong growth in Food Manufacturing and Distribution by 9.1% and Catering by 19.7%. Underlying net profit for the quarter was KD5.3 million, representing a 2.4% increase from the same period last year.
We are pleased with our overall performance when taking into account some of the macro-economic challenges across the markets we operate in, as well as when considering the continued slowdown in the tender.”
Financial Highlights
- Revenue: KD 57.5 million, an increase of 3.4% compared to Q1 2016
- EBITDA: KD 7.3 million, an increase of 2.2% compared to Q1 2016
- Net profit: KD 5.3 million, an increase of 2.4% compared to Q1 2016
Q1 Financial Performance Review:
- Food Business Line: The Food Business Line accounted for 69.6% of Group Revenue and comprises of Manufacturing and Distribution (50.4% of Group Revenue), Catering (12.9%) and Services (6.3%). Revenue reached KD40.1 million, an increase of 7.7% compared with the same period in 2016.
- Manufacturing and Distribution: Q1 Revenue increased 9.1%, with broad based growth across our key operating units. This was largely driven by our company owned brands, rather than our partner brands.
- Catering: Q1 Revenue increased by 19.7% driven by the given contracts won in Q3 2016.
- Services: Q1 Revenue declined by 17.8% due to the nature of the tender business in Jordan resulting in quarterly fluctuations.
- Non-Food Business Line: The Non-Food Business Line accounted for 30.3% of Group Revenue and comprises FMCG and Pharmaceuticals (27.6% of Group Revenue) and Industrials (2.7%). Revenue reached KD17.5 million, a decrease of 5.2% compared with the same period in 2016.
- FMCG and Pharmaceuticals: Q1 Revenue decreased by 5.8% due to the continued slowdown in the tenders offered by the Ministry of Health, slowly compensated by other FMCGs.
- Industrials: Industrials revenues grew by 1.0% as KLOC, our oil refining business, continues its turnaround story.
Regional Business Highlights:
- In Kuwait: Q1 Revenue grew by 2.4% as all businesses have performed well and in line with expectations and GDP.
- In UAE: Q1 Revenue grew by 0.6% with signs of stabilizing discretionary portfolio and strong exports.
- In Qatar: Q1 Revenue grew by 4.9% driven by continued active growth of business.
- In KSA: Q1 Revenue grew by 1125.5% as Mezzan continues to focus on gaining a foothold in the region’s largest consumer market.
- In Jordan : Q1 Revenue decreased by 39.2% due to challenges to tenders driven business.
-ENDS-
About Mezzan Holding:
■ Operates in seven countries through 29 subsidiaries with 7,500 employees
■ Distributes over 25,000 Stock Keeping Units (SKU), making it one of the largest operators in terms of SKUs, unit sales, market share and in terms of share of revenues of total consumer spending in consumer categories served by the company
■ Active in various segments of the consumer staple industry supported by long-standing relationships with Johnson & Johnson, Olayan Kimberly-Clark, Reckitt Benckiser, General Mills, Arla Foods, Sara Lee and many other leading brands and manufacturers
■ Serves over 100,000 meals a day in Kuwait, Qatar and the UAE through its catering business
■ Has a total of 130,000 square meters in food, beverage and FMCG manufacturing facilities in Kuwait, Qatar, UAE and Afghanistan
■ Leverages long-standing relationships with private and cooperative supermarkets
■ Vertically integrated into complementary business operations, including packaging, catering, contract services and logistics
■ Food services customers include multinational fast food chains, airline catering services and large food services companies.
Mezzan Holding is 70-year old company that was listed on Kuwait Stock Exchange in the second quarter of 2015. The company headquartered in Kuwait with direct operational activities in Kuwait, UAE, Qatar, Saudi Arabia, Iraq, Jordan, and Afghanistan.
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For more information, please contact:
Fawaz Al-Sirri | +965 66622448 | fawaz@bensirri.com