Net Profit to Parent Company Shareholders up 6.8%
Kuwait, May 11, 2021: 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 ended 31 March 2021.
The company recorded KD73.4 million in revenue, driven by its food manufacturing and distribution, fast-moving consumer goods and healthcare as well as Mezzan’s industrial segment. Earnings Before Interest, Tax, and Depreciation and Amortization (EBITDA) grew by 1% due to the reduction in Selling, General & Administrative Expense (SG&A). Mezzan’s Q1 2021 Net Profit to Parent Company Shareholders grew by 6.8% compared to Q1 2020, as a result of improved operating results.
Q1 2021 Financial Highlights:
- Revenue: KD73.4 million, down 1.4%
- Operating Profit: KD6.4 million, up 0.9%
- EBITDA: KD8.7 million, up 1.0%
- Net Profit to Parent Company Shareholders: KD5.0 million, up 6.8%
Commenting on the results, Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan, said: “I am proud to announce that Mezzan has started 2021 strong, with an increase of 6.8% in net profit to parent company shareholders during our first quarter compared to the same period last year. Despite the challenges that we continue to encounter as a result of the Covid-19 pandemic, Mezzan managed to increase profitability, generating an operating profit of KD6.4 million, an increase of 0.9% compared to the first quarter of 2020. These results are a proof to Mezzan’s robust, defensive business model.”
Mezzan Holding CEO, Garrett Walsh, commented: “We are pleased to announce consistently strong quarterly profits since the beginning of Covid-19 pandemic, while maintaining a steady financial position, stable asset quality metrics and strong capitalization.”
Q1 2021 Financial Performance Review:
Food Business Line:
Total Revenue for the Food Business Line reached KD44.6 million, a decrease of 3.6% compared with the same period in 2020. The Food Business Line accounted for 60.8% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 46.0% of Group Revenue), Catering (generating 10.0% of Group Revenue) and Services (generating 4.8% of Group Revenue).
- Manufacturing and Distribution: Q1 2021 revenue increased by 2.0%.
- Catering: Q1 2021 revenue decreased by 15.6%.
- Services: Q1 2021 revenue decreased by 21.1%.
Non-Food Business Line:
Revenue reached KD28.8 million, an increase of 2.2% compared with the same period in 2020. The Non-Food Business Line accounted for 39.2% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Pharmaceuticals business division (generating 37.3% of Group Revenue) and Industrials (generating 1.9% of Group Revenue).2w
- FMCG and Pharmaceuticals: Q1 2021 revenue increased by 1.5% boosted by strong performance of KSPICO and pharmaceutical segment.
- Industrials: Q1 2021 revenue increased by 19.1%.
Regional Business Highlights in Q1 2021:
- In Kuwait: Q1 2021 revenue grew by 0.6% due to strong performance in FMCG and healthcare segment, as well as strong performance in Mezzan’s industrial segment.
- In UAE: Q1 2021 revenue increased by 3.6% due to the increase in distribution activities.
- In Qatar: Q1 2021 revenue decreased by 18.1% due to the decline of catering business line.
- In KSA: Q1 2021 revenue increased by 15.6% as Mezzan continues to launch new products.
- In Afghanistan: Q1 2021 revenue decreased by 57.3% due to the departure of U.S troops from the country.
- In Jordan: Q1 2021 revenue increased by 16.5% due to improving Mezzan’s logistics operations.