Mezzan Holding holds 17th annual general meeting
Shareholders approve cash dividend of 22 fils per share A total cash payout of KD6.8 million
KUWAIT: Mezzan Holding KSCP, one of the largest manufacturers and distributors of food, beverage, FMCG and pharmaceutical products in the Gulf, held its 17th Annual General Meeting (AGM) yesterday.
During the AGM, the shareholders approved the Board of Directors’ recommendation to distribute 22 fils per share for a total dividend payout of KD6.8 million (22 percent of capital) for the year.
Mezzan Vice Chairman, Mohammad Jassim Mohammad Al-Wazzan said: “Despite a challenging macroeconomic environment the company has faced in some of the markets we operate in, the Board is pleased with the company’s overall performance as we maintain our focus on strengthening our regional presence with leading positions in each of the our categories. The company witnessed the highest capital expenditure year on record and we look forward to growing our profitability in 2018 and beyond.”
2017 Full Year Financial Performance Review: Revenue: KD204.5 million, down 1.4 percent EBITDA: KD20.9 million, down 15.5 percent Reported Net Profit attributable to Equity holders of the Parent Company: KD12.9 million, down 24.7 percent
2017 Balance Sheet Highlights:
Total Assets: KD 210.9 million, up 8.2 percent Equity to Parent Company: KD110.1 million, up 8.4 percent
Mezzan Holding performance by business line
Mezzan Holding incorporates 30 subsidiaries and is operationally structured into two primary business lines: the Food Business Line and the Non-Food Business Line. Below is the company’s performance by business line:
Food Business Line: Accounted for 75.4 percent of Group Revenue, and comprises Manufacturing and Distribution (53.9 percent of Group Revenue), Catering (14.4 percent) and Services (7.0 percent). Revenue reached KD154.2 million, a slight decrease of 0.7 percent compared with the same period in 2016.
Manufacturing and Distribution: Revenue increased 1.0 percent.
Catering: FY Revenue increased by 10.2 percent.
Services: FY Revenue declined by 25.7 percent.
Non-Food Business Line: Accounted for 24.6 percent of Group Revenue and comprises FMCG and Pharmaceuticals (21.8 percent of Group Revenue) and Industrials (2.8 percent). Revenue reached KD50.3 million, a decline of 3.3 percent compared with the same period in 2016.
FMCG and Pharmaceuticals: FY Revenue decreased by 3.7 percent. Industrials: FY Industrials revenues decreased by 0.4 percent.
Regional Business Highlights:
In Kuwait: FY Revenue grew by 1.8 percent due to steady performance as the local retail market returns to buoyancy.
In UAE: FY Revenue decreased by 12.7 percent due to lower exports to Qatar and the impact of excise tax introduced in October 2017. In Qatar: FY Revenue grew by 3.2 percent driven by resolving supply chain issues putting sales and profitability back on track.
In KSA: FY Revenue grew by 243.5 percent as Mezzan continues to focus on gaining a foothold in the region’s largest consumer market. In Jordan : FY Revenue decreased by 44.8 percent due to challenges to tenders driven business.
In Afghanistan : FY Revenue decreased by 16.1 percent as operations were suspended for three months. The situation was resolved in August
In Iraq: FY Revenue grew by 34.3 percent.