Kuwait, November 8, 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 Q3 2017.
Third quarter revenue was up 4.3% as it stood at KD49.8 million, bringing the total revenue for the first three quarters of the year to KD157.6 million, an increase of 0.9% over the same period last year.
- Q3 Revenue KD 49.8 million, bringing YTD revenue to KD157.6 million
- Q3 EBITDA: KD4.8 million, bringing YTD EBITDA to KD16.1 million
- Q3 Net Profit: KD2.8 million, bringing YTD Net Profit to KD10.1 million
Q3 2017 Financial Highlights:
- Revenue: KD49.8 million, up 4.3%
- EBITDA: KD4.8 million, down 3.6%
- Underlying Net Profit: KD2.7 million, down 13.8 %
- Reported Net Profit attributable to Equity holders of the Parent Company: KD 2.8 million, down 11.1%
YTD (As of Sep 30th, 2017) 2017 Financial Highlights:
- Revenue: KD157.6 million, up 0.9%
- EBITDA: KD16.1 million, down 14.6%
- Underlying Net Profit: KD10.1 million, down 25.3%
- Reported Net Profit attributable to Equity holders of the Parent Company: KD10.1 million, down 23.0%
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said: “2017 still proves to be a challenging year with various external factors weighing throughout. Mezzan’s results in the third quarter of 2017 was driven by the continued growth and healthy performance of the food manufacturing and distribution business, which generates 53.7% of the company’s revenue. Our diversified business model and strong balance sheet are the best assets to face these challenges.
Despite the external challenges, we managed to maintain the quality of our balance sheet and improve the operating cash flow which enabled us to invest more in growth and efficiency projects this year”.
Mezzan Holdings CEO stated: “The improvement in the third quarter reflects the efforts we took to curb the impact of external factors the company has been facing in the second quarter and at the start of the third quarter. As we look into the fourth quarter, we continue to see external factors having an impact on our business”.
YTD (nine months) 2017 Financial Performance Review:
- Food Business Line: The Food Business Line accounted for 73.8% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 53.7% of Group Revenue), Catering (generating 13.7% of Group Revenue) and Services (generating 6.4% of Group Revenue). Total Revenue for the Food Business Line reached KD116.3 million, an increase of 2.1% compared with the same period in 2016.
- Manufacturing and Distribution: Revenue increased 3.8%.
- Catering: YTD Revenue increased by 12.2%.
- Services: YTD Revenue declined by 23.3%.
- Non-Food Business Line: The Non-Food Business Line accounted for 26.0% of Group Revenue. The Business Lines comprises FMCG and Pharmaceuticals business division (generating 23.4% of Group Revenue) and Industrials (generating 2.6%). Revenue reached KD41.0 million, a decrease of 2.4% compared with the same period in 2016.
- FMCG and Pharmaceuticals: YTD Revenue decreased by 2.3%.
- Industrials: YTD Industrials revenues decreased by 3.0%.
Regional Business Highlights:
- In Kuwait: YTD Revenue grew by 1.4% due to steady performance as the local retail market returns to buoyancy.
- In UAE: YTD Revenue decreased by 3.4% due to lower exports.
- In Qatar: YTD Revenue grew by 2.5% driven by resolving supply chain challenges.
- In KSA: YTD Revenue grew by 618.4% as Mezzan continues to focus on gaining a foothold in the region’s largest consumer market following the acquisition of 70% stake in Al Safi Foods (now Mezzan Foods).
- In Jordan: YTD Revenue decreased by 42.1%.
- In Afghanistan: YTD Revenue decreased by 9.0% attributed to the temporary halt of operations between June and mid-August 2017.
- In Iraq: YTD Revenue grew by 67.8%.
(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.
###
For more information, please contact:
Fawaz Al-Sirri | +965 66622448 | fawaz@bensirri.com