Kuwait, November 10, 2018 — 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 nine months ending 30 September 2018.
Financial Highlights for nine month period ending 30 September 2018:
- Revenue: KD 161.5 million, up 2.5% from comparable period in 2017
- EBITDA: KD 14.6 million, down 9.2% from comparable period in 2017
- Reported Net Profit attributable to Equity Holders of the Parent Company: KD 8.0 million, down 20.5% from comparable period in 2017
The above YTD 30 September 2018 results are based on IFRS 15 and 9 accounting standards, which came into effect in January 2018. However, 2017 figures were not restated to reflect the changes in the standards. Therefore a like-for-like comparison would show an increase of +4.9% in revenue, a -8.1% decrease in EBITDA, and a 18.9% decline in net profit attributable to Equity Holders of the Parent Company.
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said, “ Mezzan faced a number of headwinds during the first nine months of this year despite that we were able to increase our revenue. We hope that the new investments we recently concluded to increase our production capacities and operational efficiencies in the near future.
Mezzan CEO Garry Walsh added “ Our results over the first nine months of this year were constrained for a number of factors, primarily the implementation of excise duty on energy drinks in the UAE effective 1 October 2017 and increase of raw materials. He added” On the other hand, we have commenced production from the new facilities in UAE and Qatar, we also rationalized the costs in the UAE, and we target to gradually move into the new centralized food warehouse in Kuwait soon, all of which aim at enhancing future results.
Year To Date September 2018 Financial Performance Review
■ Food Business Line: Total Revenue for the Food Business Line reached KD 118 million for the nine month period ending 30 September 2018, a 1.4% increase compared with the same period in 2017. The Food Business Line accounted for 73.1% of Group Revenue in the nine months period ending 30 September 2018. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 48.1% of Group Revenue), Catering (generating 18.0% of Group Revenue) and Services (generating 7.0% of Group Revenue).
■ Food Manufacturing and Distribution: Revenue decreased by 8.2% driven primarily by the impact of excise duty in the UAE and general conditions.
■ Catering: Revenue increased by 34.6% driven by expanding business in Kuwait and Qatar.
■ Services: Revenue increased by 11.0% driven by our business in Afghanistan.
■ Non-Food Business Line: The Non-Food Business Line accounted for 26.9% of Group Revenue in the nine month period ending 30 September 2018. The Business Lines comprises non Food Fast Moving Consumer Goods and Pharmaceuticals business division (generating 24.4% of Group Revenue) and Industrials (generating 2.5%). Revenue reached KD 43.4 million for the nine month period ending 30 September 2018, an increase 6.0% compared with the same period in 2017.
■ FMCG and Pharmaceuticals: Revenue increased by 7.1%.
■ Industrials: Revenue decreased by 3.3%.
Regional Business Highlights for YTD September 2018:
■ In Kuwait: YTD’ Sep. 2018 Revenue grew by 9.0% due to enhanced trading.
■ In UAE: YTD’ Sep. 2018 Revenue decreased by 27.8% due to impact of excise tax introduced in October 2017 and general market conditions.
■ In Qatar: YTD’ Sep. 2018 Revenue grew by 6.7% driven by catering business.
■ In KSA: YTD’ Sep. 2018 Revenue declined by 17.1%.
■ In Jordan: YTD’ Sep. 2018 Revenue decreased by 10.5% due to challenges to tenders-driven business.
■ In Afghanistan: YTD’ Sep. 2018 Revenue increased by 34.8%.
■ In Iraq: YTD’ Sep. 2018 Revenue grew by 8.5%.