Shareholders approved the Board of Directors’ recommendation to distribute cash dividend of 16 fils per share, representing 58% of profit, and to distribute treasury shares at a rate of 2% (two shares for every 100 shares held by investors)
Kuwait, May 22, 2022 — Mezzan Holding KSC, one of the largest manufacturers and distributors of food, beverage, FMCG, and pharmaceutical products in the Gulf, held its 21st Annual General Meeting (AGM) of Shareholders today in Kuwait. The shareholders approved the Board of Directors’ recommendation to distribute cash dividends for the fiscal year ended on December 31, 2021, of 16 % of the nominal value of the share (16 fils per share) representing 58% of the profit, and distribution of treasury shares at a rate of 2% (two shares for every 100 shares held by investors).
The company’s shareholders also elected a new board of directors for a period of three years. The new board of directors comprises: Mr. Moutasem Jassim Al-Wazzan (Chairman), Mr. Mohammed Jassim Al-Wazzan (Vice Chairman), Mr. Jamal Abdulhameed Al-Mutawa, Mr. Abdulwahab Ahmed Al-Marzouq (independent board member) and a new board member was appointed, Mr. Mohammed Aslan Al-Matrouk. The company’s shareholders also approved the re-appointment of the company’s external auditors Deloitte and Touche – Al Wazzan & Co. for the fiscal year ending December 31, 2022. The company’s shareholders also authorized the buying, selling, or disposing of Mezzan Holding shares that do not exceed 10% of the number of shares by the Board of Directors. This is in accordance with the governing regulations, provided that this authorization continues for a period of eighteen months from the date of its issuance. Other agenda items were also approved by the majority.
Mezzan Holding Vice Chairman Mohammad Jassim Al-Wazzan, on behalf of the new board of directors, executive management, and Mezzan employees, expressed his appreciation to Mr. Abdulrahman Jassim Al-Wazzan, the former Chairman of the board for his outstanding leadership and guidance and wished him well in his retirement.
Mezzan Holding Vice Chairman Mohammad Jassim Al Wazzan said: “Despite the challenging environment we witnessed in 2021, our management team acted swiftly to streamline operations and production. Mezzan Holding has continually invested in diverse offerings and operational lines to ensure all aspects of industrial, production, warehousing, and distribution capabilities are operating effectively and efficiently. This was done by diversifying our products and their reach to meet the needs of our diverse markets across the region. Mezzan Holding has not only improved legacy brands’ quality but has also ensured the efficient distribution of its agency brands. We maintained our position and expanded our wide range of local and international products in our operational markets.”
He added “We took on key lessons from this year to counteract any future challenges by continuing to diversify our business model and portfolio while adopting more flexibility without compromising our strategic priorities to meet the expectations of our shareholders and customers. I would like to express my appreciation to our management team and employees for their commitment and dedication during the challenging period of the last two years. And I would like to thank the regulators for their continued cooperation throughout this fiscal year. Wishing everyone continued success and prosperity.
FY 2021 Financial Performance Review:
Mezzan Holding maintained a performance level in 2021 close to the previous year, where it achieved revenues estimated at KD245.1 million, with a slight decrease of 0.5%. This was driven by the revenues of the Manufacturing and Distribution sector and Industrials sector, in which each sector increased by 5.2 % and 26.4%, respectively. These increases were offset by a decrease in the results of the Catering sector, the FMCG and Pharmaceuticals sector, and the Services sector, whose revenues decreased by 8.7%, by 1.8%, and by 24.5%, respectively.
The company recorded KD8.4 million in Net Profit to Parent Company Shareholders which decreased by 22.8% compared to 2020, which amounted to KD10.9 million due to the significant increase in the price of costs by supply chain issues.
FY 2021 Financial Highlights:
- Revenue: KD245.1 million, down 0.5%
- Operating Profit: KD11.2 million, down 34.7%
- Gross Profit: KD52.9 million, down 10.7%
- EBITDA: KD21.8 million, down 14%
- Net Profit to Parent Company Shareholders: KD8.4 million, down 23%
- Total Assets: KD267.5 million, up 5.8%
- Total Liabilities: KD147.4 million, up 9%
- Shareholders’ Equity to Owners of Parent Company KD111.4 million, up 1.8%