Mezzan Holding reports Q3 15 financial results
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.”