Kuwait, November 7, 2019 — 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 Q3 2019.
During the first nine months of 2019, Mezzan was able to gradually grow both its revenue and profitability, driven by the gradual improvement of both Food and Non Food segments alike.
Mezzan also recorded revenue growth in each of its key markets of operations including UAE and Qatar where Mezzan was most recently hit with unforeseen challenges.
Q3’2019 also witnessed a key development in Mezzan’s history where it has completed a number of key initiatives in the healthcare space, including acquiring a majority stake in Kuwait Saudi Pharmaceutical Company (KSPICO), the only pharmaceutical manufacturer in Kuwait as well as acquiring the distribution rights of Medtronics and Covidien through a joint venture structure. Medtronics is the world’s leading provider of medical equipment.
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said: “we are happy to see the gradual turnaround and positive momentum continue, as our new projects build up scale and as we fully integrate our recent healthcare acquisitions. We hope the performance and momentum continue going forward.
Garrett Walsh, CEO of Mezzan Holding added “we are glad to see that the recent investments in manufacturing and distribution platforms have started, gradually, impacting our results. Each of our major segments have achieved positive growth for the year on the back of our continued support and successful investments”.
YTD 30 September 2019 Financial Performance Review:
Food Business Line:
Total Revenue for the Food Business Line reached KD122.5 million, a significant increase of 3.8% 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 48.9% of Group Revenue), Catering (generating 15.8% of Group Revenue) and Services (generating 7.4% of Group Revenue).
- Manufacturing and Distribution: Revenue increased 7.0%.
- Catering: Revenue declined by 7.8%.
- Services: Revenue increased by 11.6%.
Non-Food Business Line:
Revenue reached KD47.3 million, an increase of 8.9% 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 25.7% of Group Revenue) and Industrials (generating 2.2%).
- FMCG and Pharmaceuticals: Revenue increased by 10.7%.
- Industrials: Industrials revenues decreased by 8.1%.
Regional Business Highlights:
- In Kuwait: YTD Revenue grew by 3.4% due to strong performance in Food M&D, Services and FMCG
- In UAE: YTD Revenue increased by 9.9% as ramp up continues on new manufacturing lines and energy drink performance gets gradually restored
- In Qatar: YTD Revenue grew by 7.2% driven by strong performance from catering and the new chips line.
- In KSA: YTD Revenue increased by 16.3 % as chips sales picks up from the new extruder manufacturing line.
- In Afghanistan: YTD Revenue increased by 24.0%
- In Jordan: YTD Revenue increased by 10.6%
- In Iraq: YTD Revenue declined by 25.9%.