Kuwait-based Mezzan Holding, one of the largest manufacturers and distributors of food, beverage, FMCG and pharmaceutical products in the Gulf, has reported a revenue of KD109.4 million ($361.21 million) for the first half (H1) of 2018, up 1.5 per cent from H1 2017.
The company’s EBITDA reached KD11.2 million ($36.97 million), a drop of 1.1 per cent compared to H1 2017, said a statement.
Mezzan Holding reported a net profit attributable to equity holders of the parent company at KD6.8 million ($22.45 million), a decrease of 6.9 per cent in comparison to the same period of the previous year, it said.
Mezzan Holding executive vice chairman Mohammad Jassim Al Wazzan said: “We are glad to see our top line grow albeit modestly, despite the various headwinds facing the group.”
“We hope the newly installed capacities throughout various operations will further support top line growth and profitability as these are deployed in the near future,” he added.
Mezzan Holding chief executive officer Garry Walsh said: “We have performed well in our core business and core market, with Kuwait supporting the group results with double digit growth. Our operations in the UAE, impacted by the implementation of 100 per cent excise duty levied on energy drinks late last year, in addition to VAT, is the largest headwind the group currently faces as we continue to find product from parallel markets, led us to complete yet another round of cost rationalisation exercise recently.”
“We expect the headwind to subside by the annualisation of the event in Q4 2018. We have recently added capacities in core products of chips in the UAE and Qatar which we hope will further spur growth soon,” he added.
The company’s H1 2018 financial performance review are as follows:
•Food Business Line: The food business line accounted for 71.5 per cent of group revenue. The business line comprises the following three divisions: manufacturing and distribution (generating 48.5 per cent of group revenue), catering (generating 16.5 per cent of group revenue) and services (generating 6.4 per cent of group revenue). Total Revenue for the food business line reached KD78.2 million ($258.17 million), a slight decrease of 0.1 per cent compared with the same period in 2017.
•Manufacturing and Distribution: Revenue decreased by 6.7 per cent given the impact of excise duty in the UAE and general conditions.
•Catering: Revenue increased by 26.2 per cent given expanding business in Kuwait and Qatar.
•Services: Revenue decreased by 1.1 per cent.
•Non-Food Business Line: The non-food Business Line accounted for 28.5 per cent of group revenue. The business lines comprises FMCG and pharmaceuticals business division (generating 26.1 per cent of group revenue) and Industrials (generating 2.4 per cent). Revenue reached KD31.2 million ($103.006 million), an increase 5.8 per cent compared with the same period in 2017.
•FMCG and Pharmaceuticals: Revenue increased by 7.2 per cent.
•Industrials: Revenue decreased by 6.7 per cent.
Mezzan Holding’s regional business highlights during H1 2018 include: revenue grew by 8.0 per cent due to enhanced trading in Kuwait; revenue decreased by 27.1 per cent due to impact of excise tax introduced in October 2017 and general market conditions in the UAE; revenue grew by 5.9 per cent in Qatar; revenue declined by 17.5 per cent, notwithstanding the same, the business reached breakeven point in March 2018, in Saudi Arabia; revenue decreased by 18 per cent due to challenges to tenders-driven business in Jordan; revenue increased by 13.2 per cent in Afghanistan; revenue grew by 14.4 per cent in Iraq, it stated. – TradeArabia News Service
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