Kuwait: 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 the first half ending 30 June 2021.
H1 2021 Financial Highlights:
- Revenue: KD 134 million, down 0.2%
- Operating Profit: KD 10 million, down 11.9%
- EBITDA: KD 14.3 million, down 9%
- Net Profit to Parent Company Shareholders: KD 7.2 million, down 10.9%
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan, said: “A healthy recovery is well on the way in the region and across sectors. In the UAE, we saw revenue growth of 19.6%, and in Saudi we saw 9.9% growth in the first half. On a group consolidated basis our net earnings came below last year’s, which were exceptional due to the pandemic, and above 2019’s net earnings.
Mezzan Holding CEO, Garrett Walsh, commented: “As expected, 2021 sees a return to normal trading patterns as society recovers from the COVID-19 pandemic. We are pleased to see our progress, despite the pandemic’s setbacks, on our key strategic investments and expect to finish the year in line with our projections. The second quarter of 2021 shows significant progress against our 2019 base and we look forward to continuing to build on this momentum”.
H1 2021 Financial Performance Review:
- Food Business Line:
Total Revenue for the Food Business Line reached KD 85.2 million, a decrease of 5.2% compared with the same period in 2020. The Food Business Line accounted for 63.6% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 47.2% of Group Revenue), Catering (generating 11.3% of Group Revenue), and Services (generating 5.1% of Group Revenue).
- Manufacturing and Distribution: H1 2021 revenue increased by 2.3%.
- Catering: H1 2021 revenue decreased by 20.7%.
- Services: H1 2021 revenue decreased by 23.1%.
- Non-Food Business Line:
Revenue reached KD 48.8 million, an increase of 10% compared with the same period in 2020. The Non-Food Business Line accounted for 36.4% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Pharmaceuticals business division (generating 34.3% of Group Revenue) and Industrials (generating 2% of Group Revenue).
- FMCG and Pharmaceuticals: H1 2021 revenue increased by 8.8%.
- Industrials: H1 2021 revenue increased by 33.8%.
Regional Business Highlights in H1 2021:
- In Kuwait: H1 2021 revenue was stable with a growth of 0.02%.
- In UAE: H1 2021 revenue increased by 19.6% due to the expansion in distribution activities.
- In Qatar: H1 2021 revenue decreased by 10.1% impacted by the decline in the catering business line.
- In KSA: H1 2021 revenue increased by 9.9% as Mezzan continues to expand its product mix.
- In Afghanistan: H1 2021 revenue decreased by 72.5% due to the departure of U.S troops from the country.
- In Jordan: H1 2021 revenue increased by 22.6% due to improving Mezzan’s logistics operations as well as adding new products in the country.
