- Q1’18 Revenue: KD58.8 million
- Q1’18 EBITDA: KD7.2 million
- Q1’18 Net Profit: KD5.0 million
Kuwait, May 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 quarter ending 31 March 2018.
Q1 2018 Financial Highlights:
- Revenue: KD58.8 million, up +2.2% from Q1 2017
- EBITDA: KD7.2 million, down 1.8% from Q1 2017
- Reported Net Profit attributable to Equity Holders of the Parent Company: KD5.0 million, down 6.2% from Q1 2017
(The above Q1 2018 results are based on IFRS 15 accounting standards, which came into effect in January 2018. However, 2017 figures were not restated to reflect IFRS 15 standards as per the auditors guidelines and best practices. Therefore a like-for-like comparison would show an increase of 5.4% in revenue, a 1.5% increase in EBITDA, and a slight 2.1% decline in net profit attributable to Equity Holders of the Parent Company.)
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said, “Performance for Q1 was in line with our expectations with Revenue growth driven by growth in Food Segment and Non Food Segment alike. We are pleased with our overall performance when taking into account some of the macro-economic challenges and external factors impacting the retail business.”
Mezzan Holding CEO Garry Walsh said, “The results in the first quarter are in line with our expectations. We saw with double digit growth in Kuwait, Mezzan’s home market, however group revenue was pulled down by a decline in revenue from some UAE-Based businesses as consumers adjust to the impact of excise duty implemented in recent months. This drop was expected, and we also expect purchasing habits to normalize in the coming quarters. However, the key development of the quarter was reaching the break even point in our recently acquired business in Saudi Arabia. We look forward to adding the new production capacities in various jurisdictions soon that will help spur more growth in Saudi Arabia. Overall, we remain optimistic and committed to meet our guidance for 2018”.
Q1 2018 Financial Performance Review
■ Food Business Line: The Food Business Line accounted for 67.8% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 45.7% of Group Revenue), Catering (generating 16.3% of Group Revenue) and Services (generating 5.8% of Group Revenue). Total Revenue for the Food Business Line reached KD39.9 million, a decrease of 0.5% compared with the same period in 2017.
■ Manufacturing and Distribution: Revenue decreased by 7.3% given the impact of excise duty in the UAE and general conditions.
■ Catering: Revenue increased by 28.6% given expanding business in Kuwait and Qatar.
■ Services: Revenue decreased by 5.8%.
■ Non-Food Business Line: The Non-Food Business Line accounted for 32.2% of Group Revenue. The Business Lines comprises FMCG and Pharmaceuticals business division (generating 29.7% of Group Revenue) and Industrials (generating 2.4%). Revenue reached KD18.9 million, an increase 8.4% compared with the same period in 2017.
■ FMCG and Pharmaceuticals: Revenue increased by 10.0%.
■ Industrials: Revenue decreased by 8.2%.
Regional Business Highlights:
■ In Kuwait: Q1 2018 Revenue grew by 10.1% due to enhanced trading.
■ In UAE: Q1 2018 Revenue decreased by 29.2% due to impact of excise tax introduced in October 2017 and general market conditions.
■ In Qatar: Q1’18 Revenue grew by 3.5%.
■ In KSA: Q1’18 Revenue declined by 22.9%, notwithstanding the same, the business reached breakeven point in March 2018.
■ In Jordan: Q1’18 Revenue decreased by 25.5% due to challenges to tenders-driven business.
■ In Afghanistan: Q1 Revenue increased by 5.6%.
■ In Iraq: Revenue grew by 15.9%.