- Board recommends a cash dividend of 12 fils per share.
- Company to hold an earnings call to discuss results on Thursday, 23rd of March 2023 at 1.30 pm Kuwait Time.
Kuwait, 22 March 2023: Mezzan Holding KSC, one of the largest manufacturers and distributors of food, beverage, FMCG, and pharmaceutical products in the Gulf, announced the company’s Q4 and FY2022 financial results.
FY 2022 Highlights:
- Revenue: KD 255.2 million, up 4.1%, driven by the growth in by Mezzan’s Food Manufacturing & Distribution Division.
- Operating Profit KD 1.53 million, down 86.3% from the previous year
- EBITDA: KD 11.6 million, down 46.9% from the previous year
- Net Profit to Parent Company Shareholders: The group recorded a net loss of KD 1.96 million, down 123.3% as a result of lower gross profit and the booking of a provision for credit losses.
Q4 2022 Highlights:
- Revenue: KD 60.6 million, up 12.5% from Q4 2021
- Operating Profit KD 5.4 million, up 383% from Q4 2021
- EBITDA: KD 8.5, up 280% from Q4 2021
- Net Profit to Parent Company Shareholders: KD 4.55 million, up 513.8% from Q4 2021
Mezzan Holding Vice Chairman, Mohammad Jassim Al Wazzan, said: “Last year brought many challenges and crucial decisions for businesses. Inflation surged to unprecedented levels, global bottlenecks and shortages, and the impact of geopolitical tensions were globally felt. During the fourth quarter of 2022 we continued working diligently to drive growth and profitability, and we demonstrated those efforts are paying off.”
Mezzan Holding CEO, Garrett Walsh, said: “Mezzan delivered a year of strong topline growth in challenging macroeconomic conditions. Sales growth was 4.1% despite high input cost inflation. Led by strong performances from our Food Manufacturing & Distribution segment. Growth was broad-based across each of our six countries of operation. Our team delivered a great finish to the year with strong fourth quarter results that capitalized on the success of our concessionaire contract with FIFA during the World Cup in Qatar. However, our full year net profit was dampened by transitory provisions for credit losses and excise tax”
FY 2022 Financial Performance Review:
- Food Business Line:
Revenue stood at KD 175 million, reflecting an increase of 6.4% compared to 2021. The Food Business Line accounted for 68.6% of Group Revenue. The Business Line comprises the following three business divisions: Manufacturing and Distribution (generating 51.8% of Group Revenue), Catering (generating 11.7% of Group Revenue), and Services (generating 5.1% of Group Revenue).
- Manufacturing and Distribution: revenue increased by 9.2%
- Catering: Revenue declined by 2.4% impacted by the drop in catering business in Kuwait.
- Services: Revenue grew by 1.4%.
- Non-Food Business Line:
Revenue stood at KD 80.1 million, representing a slight decline of 0.7% compared to 2021 full-year revenue for the Non-Food Business Line. The Non-Food Business Line accounted for 31.4% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Healthcare business division (generating 28.9% of Group Revenue) and Industrials (generating 2.5% of Group Revenue).
- FMCG and Healthcare: Revenue declined by 1.7% as a result of lower pharmacy sales.
- Industrials: Revenue grew by 11.9% due to the growth in sales from automotive and industrial lubricants as well as plastic products.
FY 2022 Regional Business Highlights:
- In Kuwait: Revenue increased by 0.3%, held back by a decline in the company’s Catering division , and FMCG & Healthcare divisions..
- In UAE: Revenue grew by 10.5%, driven by better performance of the company’s snack manufacturing facilities and the company’s energy drinks sales.
- In Qatar: Revenue grew by 14.1% as a result of the FIFA World Cup event.
- In KSA: Revenue substantially increased by 38.6% as Mezzan continues to expand its food products distribution.
- In Jordan: Revenue increased by 26% due to the success of KITCO salty snacks in the Jordanian market and U.N. services business.
- In Iraq: Revenue increased by 9.7%.
(ENDS)