Mezzan Holding KSC, one of the largest manufacturers and distributors of food, beverage, FMCG and pharmaceutical products in the Gulf, grew its Q1 2021 net profit to parent company shareholders by 6.8% compared to Q1 2020, as a result of improved operating results.
 
The company recorded KD73.4 million in revenue, driven by its food manufacturing and distribution, fast-moving consumer goods and healthcare as well as Mezzan’s industrial segment.
 
Earnings before interest, tax, and depreciation and amortisation (EBITDA) grew by 1% due to the reduction in selling, general & administrative expense (SG&A).
 
The Q1 revenue of KD73.4 million ($244.03 million) was down 1.4% compared to the corresponding period last year. The operating profit was KD6.4 million, up 0.9% and EBITDA was KD8.7 million, up 1.0%.
 
Commenting on the results, Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan, said: “I am proud to announce that Mezzan has started 2021 strong, with an increase of 6.8% in net profit to parent company shareholders during our first quarter compared to the same period last year. Despite the challenges that we continue to encounter as a result of the Covid-19 pandemic, Mezzan managed to increase profitability, generating an operating profit of KD6.4 million, an increase of 0.9% compared to the first quarter of 2020. These results are a proof to Mezzan’s robust, defensive business model.”
 
Mezzan Holding CEO, Garrett Walsh, commented: “We are pleased to announce consistently strong quarterly profits since the beginning of Covid-19 pandemic, while maintaining a steady financial position, stable asset quality metrics and strong capitalisation.”
 
Total Revenue from the Food Business Line reached KD44.6 million, a decrease of 3.6% compared with the same period in 2020. The Food Business Line accounted for 60.8% of the group revenue.
 
The Business Line comprises Manufacturing and Distribution (generating 46.0% of Group Revenue), Catering (generating 10.0% of Group Revenue) and Services (generating 4.8% of Group Revenue).
 
The Manufacturing and Distribution Q1 2021 revenue increased by 2.0%, Catering Q1 2021 revenue decreased by 15.6% and ServicesQ1 2021 revenue decreased by 21.1%.
 
The Non-Food Business Line accounted for 39.2% of Group Revenue. The Business Lines comprises FMCG and Pharmaceuticals business division (generating 37.3% of Group Revenue) and Industrials (generating 1.9% of Group Revenue).
 
FMCG and Pharmaceuticals Q1 2021 revenue increased by 1.5% boosted by strong performance of KSPICO and pharmaceutical segment. Industrials Q1 2021 revenue increased by 19.1%.
 
REGIONAL BUSINESS
 
In Kuwait Q1 2021 revenue grew by 0.6% due to strong performance in FMCG and healthcare segment, as well as strong performance in Mezzan’s industrial segment.
 
In the UAE, Q1 2021 revenue increased by 3.6% due to the increase in distribution activities.
 
In Qatar, Q1 2021 revenue decreased by 18.1% due to the decline of catering business line.
 
In KSA, Q1 2021 revenue increased by 15.6% as Mezzan continues to launch new products.
 
In Afghanistan, Q1 2021 revenue decreased by 57.3% due to the departure of US troops from the country.
 
In Jordan, Q1 2021 revenue increased by 16.5% due to improving Mezzan’s logistics operations. -- TradeArabia News Service

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