Mezzan Holding 9M net profit zooms 224% to $26.23mln

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Mezzan Holding, a leading manufacturer and distributor of food, beverage, FMCG and pharmaceutical products, has seen its nine-month (9M) net profit to parent company shareholders zoom 224% to KD8.1 million ($26.23 million).

The company’s third-quarter Q3 net profit to parent company shareholders also shot up 126% to KD2.2 million.

9M revenues were up 5.7% to KD205.5 million resulting in a 451% spike in operating profit to KD13.4 million and an EBITDA escalation of 539% to KD19.9 million. Q3 revenues were up 7.6% to KD65.2 million and operating profit soared 152% to KD3.9 million and EBITDA vaulted 216% to KD6 million.

Resilient business model

Mezzan Holding Vice Chairman, Mohammad Jassim Al Wazzan, said: “Despite the evolving industry dynamics, Mezzan has delivered strong third quarter results. This performance speaks volumes about our resilient business model and the agility with which we’ve adapted to the changing environment. We will continue to closely monitor market sentiments and remain nimble, ensuring our strategies are aligned with the long-term interests of our shareholders.”

Mezzan Holding CEO, Garrett Walsh, said: “While current market dynamics remain challenging, Mezzan is fully committed to delivering top line growth and margin improvement. The effective management of product mix and channels is yielding results, and we remain focused on delivering long-term value for our shareholders and will continue to optimise our operations to sustain and build upon this momentum.”

Food Business Line

Total Revenue for the Food Business Line reached KD134.3 million, an increase of 2.3% compared with the same period in 2022. The Food Business Line accounted for 65.3% of Group Revenue. The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 52.9% of Group Revenue), Catering (generating 7.4% of Group Revenue), and Services (generating 5% of Group Revenue).

Manufacturing and Distribution: Revenue increased by 7.5%, benefiting from the good performance of the division in Kuwait.

Catering: Revenue declined by 26% majorly impacted by the drop in catering business in Kuwait, due to discontinuation of non-accretive contracts.

Services: Revenue increased by 7%.

Non-Food Business Line

Revenue reached KD71.2 million, increased by 12.7% compared with the same period in 2022. The Non-Food Business Line accounted for 34.7% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Healthcare business division (generating 32.3% of Group Revenue) and Industrials (generating 2.3% of Group Revenue).

FMCG and Healthcare: Revenue increased by 13.5%. The division’s performance improved after resuming supply to the Saudi market.

Industrials: Revenue grew by 2.5%.

Regional Business Highlights in 9M 2023

In Kuwait revenue increased by 8.1%, in UAE revenue decreased by 2.3%, in Qatar revenue decreased by 3.5%, in KSA revenue decreased by 4.3%, in Jordan revenue increased by 18%, and in Iraq revenue increased by 1.5%.