Mezzan Holding announces FY2014 financial results, reports 22.9% rise in net profit and 28.2% rise in revenue

Kuwait, April 4, 2015 — Mezzan Holding KSCC, 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 the year 2014, reporting revenue of KD182.5 million, up 28.2% from 2013, and net profit of KD16.1 million, up 22.9% from 2013.

 

FY2014 Financial Highlights

  • Revenue: KWD182.5 million, up 28.2%
  • Gross Profit Margin: 25.1%, improvement of over 320 bps
  • EBITDA: KWD21.5 million, up 68.4%
  • Net Profit: KWD16.1 million, up 22.9%
  • Total Assets: KD163.8 million
  • Non-Kuwait revenue contribution growth from 15% to 33% of total revenue

 

Mezzan Holding Chairman, Khalid Jassim Al Wazzan, said: “We are pleased to announce our earnings for the year to our current and future shareholders as we prepare for our listing on the Kuwait Stock Exchange. Our performance in 2014 is a result of proactive business development, the introduction of a series of growth initiatives and entry into new markets, and the strength and resilience of the consumer sectors that we operate in despite economic cycles. On behalf of the Board of Directors, I would also like to express our gratitude to each and every staff member for their dedication and commitment to the company.”

On April 1st, the company announced that it had received a preliminary approval from the Kuwait Capital Markets Authority to list the company on the Kuwait Stock Exchange (KSE) following a secondary offering of up to 30% of the company which is currently managed by Watani Investment Company KSCC (NBK Capital).

The company, which distributes over 25,000 Stock Keeping Units (SKUs), targets to list its shares on the Kuwait Stock Exchange upon completion of the private placement and applicable procedures, which are expected to take place in the second quarter of 2015. Once listed, Mezzan would be a quality addition to the stock market given the sectors it operates in, scale and diversified operations.

 

2014 Business Highlights

Mezzan Holding generated around 75% of our revenues generated through consumer-driven retail sectors.  Over the last year the company rolled out several key growth initiatives that ranged from new products and manufacturing facilities in both the company’s Food and Non-Food Business Lines in Kuwait, Qatar, and the UAE. These initiatives began generating results with a direct impact on the company’s bottom line, key initiatives included:

  • In January 2014, Mezzan Holding acquired Unitra Mets Group (UMG) from The Abu Dhabi Investment Company and other minority shareholders. UMG is a leading non-alcoholic beverage distributor in the UAE. In addition to UMG being a successful business, the acquisition gave Mezzan Holding a strong distribution platform in the UAE to roll out successful products from other markets into the UAE, starting with the large-scale roll-out of new chips-based product lines that Mezzan Group is aggressively marketing in the UAE with sales reaching twice the pre-acquisition level.
  • In April 2014, Mezzan Holding commissioned a US$12.5 million water bottling production facility in Qatar that will come on-line in the first half of 2015. The new facility capitalizes on Mezzan’s very successful bottled water business in Qatar, where it has the leading market share, by raising production capacity by 136%.
  • In June 2014, Mezzan fully consolidated Kitco Group by buying the 49 percent held by the Oberoi Family, Kitco Group’s founding partners and the Group’s operators, while still retaining the partners as operators. The recent acquisition aligns with Mezzan’s focused expansion strategy of increasing the scale of operations in profitable ventures with proven track record.
  • In August 2014, Mezzan through its joint venture with Arla Foods acquired distribution rights for Starbucks range of chilled beverage products in Kuwait.
  • In September 2014, Mezzan obtained the distribution rights for Scholl’s, the renowned brand of foot care products.

 

Mezzan Holding Highlights:

  • 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.
  • Operates in seven countries through 29 owned subsidiaries, and 7,500 employees
  • Active in various segments of the consumer staple industry supported by long-standing relationships with Johnson and Johnson, Olayan-Kimberly Clark, Reckitt Benckiser, General Mills, Arla Foods, Sara Lee, and many other leading brands and manufacturers.
  • Serves over of 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, the 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 incorporates 29 subsidiaries and is operationally structured into two primary business lines: the Food Business Line and the Non-Food Business Line. The company is the manufacturer and distributor of household brands such as Kitco chips and snacks, Country Rice, Khazan meat products, Al Wazzan Rice, Al Wazzan Canned Tuna, Aqua Gulf, Pillsbury, Green Giant, Sara Lee, Betty Crocker, and Tabasco. The company is also the exclusive distributor of Starbucks chilled products, Johnson & Johnson, Dettol cleaning products, Kleenex, Listerine, Pif Paf, Huggies, Clearasil, Neutrogena, Zyrtec, Tylenol, Olfen, Misporin, Gaviscon and hundreds of other products in Kuwait as well as Red Bull in the UAE.

Mezzan Holding is headquartered in Kuwait and operates in Kuwait, Afghanistan, Iraq, Jordan, Qatar, Saudi Arabia, and UAE.

ENDS

Reporters may contact:

Fawaz Al Sirri | Bensirri Public Relations | fawaz@bensirri.com | 00965 66622448

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