Mez­zan Hold­ing re­ports Q3 15 financial re­sults

Kuwait Times - - BUSINESS -

KUWAIT: Mez­zan Hold­ing KSCC, 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 2015, re­port­ing KD46.3 mil­lion in Rev­enue up 5.6% from Q3 2014, thus bring­ing its year to date Rev­enue to KD150.8 mil­lion, rep­re­sent­ing a 10.5% in­crease on the same pe­riod in 2014.

Mez­zan Hold­ing CEO, Garry Walsh, said: “Q3 per­for­mance was in line with our ex­pec­ta­tions, where the move­ment of the Eid hol­i­day from Oc­to­ber 2014 to Septem­ber 2015 was a drag on rev­enue growth, par­tic­u­larly in our FMCG busi­ness. We were pleased to de­liver gross mar­gin ex­pan­sion from last quar­ter, as we had an­tic­i­pated, and stronger gross mar­gin than Q3 2014 with most busi­nesses mak­ing a pos­i­tive con­tri­bu­tion. We also con­tin­ued to in­vest be­hind our brands and dis­tri­bu­tion, as we in­creased our spend­ing in mar­ket­ing, run­ning our first ever abovethe-line cam­paigns for the Al Waz­zan brand in Kuwait, and for Khazan and KITCO Ket­tle Chips in UAE. We lapped some one­time ben­e­fits recorded in Q3 2014 (pre-list­ing), which had a neg­a­tive im­pact on net profit growth ra­tio in the quar­ter vs. 2014. De­spite this, our 9-month per­for­mance is in line with ex­pec­ta­tions with rev­enue growth of 10.5% and un­der­ly­ing profit growth of 16.5%. We also saw im­prove­ment in our Work­ing Cap­i­tal Days and a re­duc­tion in Net Debt vs. Q3 2014.

Our Full Year out­look con­tin­ues to be High Sin­gle Digit / Low Dou­ble Digit Rev­enue growth with some lever­age on the net profit line, which is in line with the tar­gets we set at the be­gin­ning of the year. We will con­tinue to in­vest pru­dently in our brands and in­fras­truc­ture to en­sure we de­liver qual­ity prod­ucts to our cus­tomers and con­sumers, while con­tin­u­ing to max­i­mize share­holder value.”

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