Management will hold an earnings call to discuss 9M 2022 results on Monday November 14, 2022 at 3 pm Kuwait Time.
Kuwait, 10 November 2022: 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 Q3 2022.
9M 2022 Financial Highlights:
– Revenue: KD 194.5 million, up 1.7%
– EBITDA: KD 3.1 million, down 84%
– Net Profit to Parent Company Shareholders: The group recorded a loss of KD 6.5 million, down 168.4% as a result of lower profit margin and the recording of expected credit losses.
Mezzan Holding Vice Chairman, Mohammad Jassim Al Wazzan, said: “The previously reported challenges that have had a negative effect on our results over the past two quarters deepened through the third quarter. Mezzan results are not where they need to be. We have the talents and high-quality assets to put much better numbers up on the board. Addressing cost and collection is essential to return Mezzan to a sustainable and profitable position.”
Mezzan Holding CEO, Garrett Walsh, said: “Clearly a very dissatisfying third quarter for fiscal 2022 reflecting the significant ongoing challenges we have been experiencing in our business. These challenges simply reinforce the need for a renewed focus on our business transformation efforts, as well as a significant expansion and acceleration of efforts to reduce costs and complexity throughout Mezzan.”
9M 2022 Financial Performance Review:
- Food Business Line:
Total Revenue for the Food Business Line reached KD 131.3 million, an increase of 5.8% compared with the same period in 2021. The Food Business Line accounted for 67.5% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 52% of Group Revenue), Catering (generating 10.6% of Group Revenue), and Services (generating 4.9% of Group Revenue).
- Manufacturing and Distribution: revenue increased by 10.8% as a result of growth in salty snacks and baby formula sales.
- Catering: revenue declined by 10.1% impacted by the drop in catering business in Kuwait and Qatar.
- Services: revenue declined by 4.3% due to ceasing operations in Afghanistan and the drop in Kuwait’s Food Services activities.
- Non-Food Business Line:
Revenue reached KD 63.2 million, declined by 5.7% compared with the same period in 2021. The Non-Food Business Line accounted for 32.5% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Healthcare business division (generating 30.1% of Group Revenue) and Industrials (generating 2.4% of Group Revenue).
- FMCG and Healthcare: revenue declined by 6.8% as a result of lower pharmacies’ sales.
- Industrials: revenue grew by 10.5% due to the growth in sales from lubricants and plastic products.
Regional Business Highlights in 9M 2022:
- In Kuwait: revenue declined by 2.1% mainly due to the decline in Catering, and FMCG & Healthcare business lines.
- In UAE: revenue grew by 17.5% due to the expansion in salty snacks distribution business.
- In Qatar: revenue grew by 2.9% as a result of growth from “Khazan” sales.
- In KSA: revenue grew by 36.4% as Mezzan continues to expand its food products distribution.
- In Jordan: revenue increased by 19.5% due to the success of KITCO salty snacks in the Jordanian market.
- In Iraq: revenue increased by 10.6%.