Kuwait, 13 November 2021: Mezzan Holding KSC, one of the largest manufacturers and distributors of food, beverage, FMCG, and pharmaceutical products in the Gulf, announced the company’s financial results for the 9-month period ending 30 September 2021.
Q3 2021 Financial Highlights:
- Revenue: KD 57.2 million, down 4.8%
- Net Profit to Parent Company Shareholders: KD 2.3 million, up 6.9%
YTD 2021 Financial Highlights:
- Revenue: KD 191.2 million, down 1.6%
- Operating Profit: KD 13.1 million, down 11.1%
- EBITDA: KD 19.6 million, down 8.4%
- Net Profit to Parent Company Shareholders: KD 9.5 million, down 7.2%
Mezzan Holding Executive Vice Chairman, Mohammad Jassim Al Wazzan, said: “The results are in line with expectations and ahead of our 2019 results for the same period. We view 2019 as our benchmark year given last year’s exceptional events. We are proud of our team for continuing to deliver despite the supply chain challenges that our industry is experiencing across the world”.
Mezzan Holding CEO, Garrett Walsh, said: “While the year 2020 was exceptional as our industry battled lockdowns, disruptions and the initial uncertainty, 2021 so far is also exceptional but for different reasons. For most of the last nine months we had to navigate regional and international supply chain issues, labor issues, and adjust for escalating inflation. We are pleased with the results we announced today, with revenue coming in at 12.6% above 2019 levels while recording a net profit to parent company shareholders that’s 4.4% above 2019 for the same period. Today, we are effectively adapting to near-term challenges while evolving our business and strengthening our iconic brands to better serve consumers for the long term across all markets and business lines”.
YTD 2021 Financial Performance Review:
Food Business Line:
Total Revenue for the Food Business Line reached KD 124.2 million, a decrease of 4.1% compared with the same period in 2020. The Food Business Line accounted for 65% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 47.8% of Group Revenue), Catering (generating 12% of Group Revenue), and Services (generating 5.2% of Group Revenue).
- Manufacturing and Distribution: revenue increased by 2.1%.
- Catering: revenue decreased by 13.6%.
- Services: revenue decreased by 26.3%.
Non-Food Business Line:
Revenue reached KD 67 million, an increase of 3.3% compared with the same period in 2020. The Non-Food Business Line accounted for 35% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Pharmaceuticals business division (generating 32.9% of Group Revenue) and Industrials (generating 2.2% of Group Revenue).
- FMCG and Pharmaceuticals: revenue increased by 1.9%.
- Industrials: revenue increased by 29.3%.
Regional Business Highlights in YTD 2021:
- In Kuwait: revenue decreased by 2.2% mainly due to the decline in the food business line.
- In UAE: revenue increased by 18% due to the continuous expansion in distribution activities.
- In Qatar: revenue decreased by 4.9% impacted by the decline in the catering business line.
- In KSA: revenue increased by 12.1% as Mezzan continues to expand its product presence in new channels.
- In Afghanistan: revenue decreased by 82.1% due to the departure of U.S. troops from the country and the Afghan political turmoil.
- In Jordan: revenue increased by 19.9% due to improving Mezzan’s logistics operations as well as adding new products in the country.