Mezzan Holding Holds 19th Annual General Meeting

Kuwait, May 10, 2020 — Mezzan Holding KSCP, one of the largest manufacturers and distributors of food, beverage, FMCG and healthcare  products in the region, held its 19th Annual General Meeting (AGM) of Shareholders today where shareholders approved the board of directors recommendation of distributing cash dividend of 15 fils per share.

In 2019, Mezzan recorded healthy growth in operational metrics such as Revenue, Gross Profit, Operating Profit, and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA). 

These were driven by its fast-moving consumer goods and healthcare sectors, as well as the food services sector, and food manufacturing and distribution. 

2019 was also a milestone year as Mezzan inked two key transactions, the first was the acquisition of 67% stake in Kuwait Saudi Pharmaceutical Company, and the other being a Joint Venture for the distribution of medical devices in Kuwait under the brands of Medtronics and Covidein. 

During 2019, the group recorded non-cash and non-recurring losses for an aggregate value of KD2.4 million, relating to impairment of goodwill in an investment in a subsidiary in Saudi Arabia for approximately KD1.2 million and an impairment of other intangible assets driven by reclassification of a property resulting from the application of IFRS 16 (which started in 2019) and IAS38. 

Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said: “I would like to thank the group’s employees and workers who are working around the clock now to secure food and medicine under the current circumstances”.

He added “2019 witnessed the expansion of Mezzans scale and scope in the healthcare market which now includes  production of pharmaceutical products,  a key component of consumer spending.  

He concluded “Mezzan was also successful in enhancing its revenue and operational profits but net profit was reduced due to non-cash non-recurring losses (impairment of intangible assets). 

FY 2019 Financial Highlights:

  • 2019 Revenue: KD222.5 million, up 7.2%  
  • 2019 Gross Profit: KD48.7million, up 10.7%  
  • 2019 EBITDA: KD18.5 million, up 18.5%
  • 2019 Net Profit: KD5.6 million, down 19.0%

FY 2019 Balance Sheet Highlights:

  • 2019 Assets KD 260.3 million 
  • Shareholders’ Equity to owners of parent company KD 105.6 million 

 

FY 2019 Financial Performance Review:

Food Business Line

Total Revenue for the Food Business Line reached KD160.4 million, a steady increase of 3.4% compared with the same period in 2018.

The Food Business Line accounted for 72.1% of Group Revenue. The Business Line comprises the following three divisions:  Manufacturing and Distribution (generating 48.4% of Group Revenue), Catering (generating 16.0% of Group Revenue) and Services (generating 7.8% of Group Revenue).

Manufacturing and Distribution: Revenue increased 5.8%.

Catering: FY Revenue decreased by 6.1%. 

Services: FY Revenue increased by 10.8%.

Non-Food Business Line

Revenue reached KD62.0 million, an increase of 18.9% compared with the same period in 2018. The Non-Food Business Line accounted for 27.9% of Group Revenue. 

The Business Lines comprises the following divisions: FMCG and healthcare business division (generating 25.6% of Group Revenue) and Industrials (generating 2.3%).

FMCG and Pharmaceuticals: FY Revenue increased by 21.9%. 

■ Industrials: FY Industrials revenues decreased by 6.9%.

 

Regional Business Highlights:

  • In Kuwait: FY Revenue grew by 6.9% due to strong performance in FMCG and Catering
  • In UAE: FY Revenue increased by 8.4%.
  • In Qatar: FY Revenue grew by 5.1% driven by resolving supply chain issues as well as continued strong performance from catering.
  • In KSA: FY Revenue declined by 13.5% as supply of chips were rerouted to Qatar and facing delay in inaugurating the new extruder manufacturing line, which came on line in the last quarter of 2018.
  • In Afghanistan: FY  Revenue increased by 23.1% due to increased sales in the fruits and vegetables business.
  • In Jordan: FY Revenue decreased by 3.3%
  • In Iraq: FY Revenue increased by 14.3%

 

(ENDS)