Mezzan Holding shareholders approved its Board of Directors’ recommendation to distribute cash dividends of 18% of the nominal value of the share (18 fils per share) representing 50% of the profit, and distribution of treasury shares at a rate of 2%.
In 2020 the company posted revenue of KD246.4 million ($818.22 million), up 10.8%, Operating Profit: KD17.1 million, up 35.3% and EBITDA KD25.4 million, up 36.9%.
The company witnessed high growth in consumer-driven business units. It recorded KD10.9 million in net profit to Parent Company Shareholders which grew by 93.9% compared to 2019 which amounted to an amount of KD5.6, million as a result of higher margins, increased scale of operations, as well as lower borrowing costs.
At its 20th Annual General Meeting (AGM), Mezzan Holding KSCP, one of the largest manufacturers and distributors of food, beverage, FMCG, also approved the board’s 2020 remuneration, a total amount of KD100,000, and agreed to not transfer the compulsory reserve and the voluntary reserve, given that they exceed half of the company’s issued capital.
The meeting also authorised the buying, selling, or disposing of the company's shares that do not exceed 10% of the number of shares by the Board of Directors.
This is in accordance with the controls and conditions stipulated by the law, regulations, decisions, and instructions of the supervisory authorities, provided that this authorization continues for a period of eighteen months from the date of its issuance.
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said: “Last year was a challenging year for regional and international markets, where uncertainty and difficulties continued to prevail. Despite this, Mezzan has succeeded in facing these fluctuations due to our diversifying strategy and business model. Our 2020 results demonstrated the flexibility and endurance of our business model and the group's ability to adapt quickly to the fluctuations caused by the Covid-19 pandemic without losing sight of our strategic priorities and our commitment to the company's shareholders and customers.”
He added “Since the diversification of our business’s income and strengthening its leadership position at the local and regional levels, Mezzan has continued to invest in its production, storage, and distribution capabilities to reinforce its regional position. This further reinforced our diversified revenue streams, raised productivity and operational efficiency, as well as investing in developing the brands owned by the company. Looking forward, our primary objective is investing in key production lines in different markets to further diversify our revenue streams and deliver more to our customers and shareholders.”
Mezzan Holding crossed several milestones in 2020, specifically the enhancement of operating performance motivated by its diverse product portfolio and the inorganic growth through previous acquisitions and opportunities resulting from the Covid-19 pandemic. -- Tradearabia News Service