Positive performance in both Food and Non-Food segments across all key markets
- H1 2019 Revenue: up 5.1%
- H1 2019 EBITDA: up 14.5%
- H1 2019 Net Profit to Parent Company Shareholders: up 7%
Kuwait, 6 August 2019 — 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 the first half (H1) period of 2019.
H1 2019 Financial Highlights:
- Revenue: KD115 million, up 5.1%
- EBITDA: KD12.8 million, up 14.5%
- Net Profit to Parent Company Shareholders: KD7.3 million, up 7%
Mezzan recorded strong results in H1 2019, driven by solid performances in both its Food and Non-Food segments across all key markets.
Mezzan has recently invested heavily in bolstering production capacities and warehousing infrastructure, both of which have contributed to revenue growth and enhance operational efficiency seen in the period.
Mezzan Holding’s Executive Vice Chairman Mohammad Jassim Al Wazzan said: “We are pleased with our performance in H1 2019, following a few challenging quarters. We are particularly glad to see the performance of our operations in the UAE improve, reversing a trend since 2018 driven by recovery in energy drinks segment as well as the results of recently introduced manufacturing lines of chips and snacks. In addition, our operations in Qatar performed well driven by strong performance of catering and recently introduced production lines.”
Garett Walsh, CEO of Mezzan Holding added: “We are glad to state that H1 witnessed revenue growth in all key markets including Food Manufacturing and Distribution, Food Services as well as Non Food Fast Moving Consumer Goods sectors largely driven by projects which were launched since the beginning of the year. We expect to see the annualization of this unfold further this year.”
H1 2019 Financial Performance Review:
Food Business Line:
Total Revenue for the Food Business Line reached KD82.1 million, a steady increase of 5% compared with the same period in 2018. The Food Business Line accounted for 71.4% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 48.8% of Group Revenue), Catering (generating 15.5% of Group Revenue) and Services (generating 7.1% of Group Revenue).
- Manufacturing and Distribution: H1 Revenue increased 5.7%.
- Catering: H1 Revenue declined by 1.4%.
- Services: H1 Revenue increased by 16%.
Non-Food Business Line:
Revenue reached KD32.9 million, an increase of 5.7% compared with the same period in 2018. The Non-Food Business Line accounted for 28.6% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Pharmaceuticals business division (generating 26.4% of Group Revenue) and Industrials (generating 2.3%).
- FMCG and Pharmaceuticals: H1 Revenue increased by 6.3%.
- Industrials: H1 Revenue decreased by 1%.
Regional Business Highlights:
- In Kuwait: H1 Revenue grew by 3.3% due to strong performance in Food M&D, Services and FMCG.
- In UAE: H1 Revenue increased by 9.2% as performance gets restored gradually and chips sales from new factory start to pickup.
- In Qatar: H1 Revenue grew by 7.5% driven by strong performance from catering.
- In KSA: H1 Revenue increased by 14.2% as chips sales picks up following the inaugurating of the new extruder manufacturing line.
- In Afghanistan: H1 Revenue increased by 32.4% due to increased sales in the fruits and vegetables business.
- In Jordan: H1 Revenue increased by 13.5%
- In Iraq: H1 Revenue declined by 21.9%.