Mezzan Holding, one of the largest producers and suppliers of food, beverage and pharmaceutical products in the Gulf, has seen its full year 2021 net profit to parent company shareholders fall to KD8.4 million ($27.62 million).
This is down 23% compared to the corresponding period the previous year.
Mezzan’s Board has recommended a cash dividend of 16 fils per share, representing 58% of profit, and the distribution of treasury shares at a rate of 2% (2 shares for every 100 shares held by investors).
The company’s revenue fell to KD245.1 million, down 0.5%, operating profit KD11.2 million, down 34.7% and EBITDA of KD21.8 million, down 14%.
Executing long-term strategies
Mezzan Holding Executive Vice Chairman, Mohammad Jassim Al Wazzan, said: “In 2021, we remained focused on executing our long-term strategies and stepping up growth investments, while at the same time navigating global supply chain challenges and inflation. Our revenue base was strong, with broad-based market share gains following disciplined execution. The Mezzan team demonstrated excellent perseverance and agility in a challenging environment.”
Mezzan Holding CEO, Garrett Walsh, said: “Our full-year revenue growth meaningfully accelerated in 2021 for our food manufacturing and distribution sector versus the previous year, and this gives us an added confidence that the investments we’ve made in our legacy brands are working. Moving forward, we remain committed to building advantaged capabilities that can help us win in the marketplace and become an even faster, stronger, and better organisation. Importantly, this includes putting our strategies at the centre of everything we do, from the continuous acquisition of new brands to diversifying our businesses and the sectors that we operate in.”
Walsh continued: “Our catering business line in Qatar successfully concluded a catering services contract at the FIFA Arab Cup 2021 event in Qatar, our subsidiary in Qatar provided food and beverages during the event. The attendance rate was lower than expected in the Arab Cup event. However, attendance numbers for the FIFA World Cup 2022 are expected to be much higher.”
FY 2021 Financial Performance Review:
● Food Business Line:
Total Revenue for the Food Business Line touched KD164.4 million, a slight decrease of 0.7% compared to 2020. The Food Business Line accounted for 67% of Group Revenue.
The Business Line comprises the following three divisions: Manufacturing and Distribution (generating 49.3% of Group Revenue), Catering (generating 12.5% of Group Revenue), and Services (generating 5.3% of Group Revenue).
● Manufacturing and Distribution: revenue increased by 5.2%.
● Catering: revenue decreased by 8.7%.
● Services: revenue decreased by 24.5%.
● Non-Food Business Line:
Revenue reached KD80.7 million, a slight drop of 0.2% compared to 2020. The Non-Food Business Line accounted for 33% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Pharmaceuticals business division (generating 30.6% of Group Revenue) and Industrials (generating 2.3% of Group Revenue).
● FMCG and Pharmaceuticals: revenue decreased by 1.8%.
● Industrials: revenue increased by 26.4%.
Regional Business Highlights in FY 2021:
● In Kuwait revenue decreased by 1.5% mainly due to a decline in the food business line.
● In UAE revenue increased by 17.3% due to the continuous expansion in distribution activities
and offering new products in the Emirati market.
● In Qatar revenue increased by 0.3%. Noteworthy, Mezzan’s catering business line in Qatar, through a Public Food & Beverage Concessionaire Agreement signed with FIFA, delivered catering services for the FIFA Arab Cup 2021 in Qatar.
● In KSA revenue increased by 9.5% as Mezzan continues to expand its product presence in new channels, and the launch of new brands in the Saudi market.
● In Afghanistan revenue decreased by 85% due to the complete departure of US troops from the country and the Afghan political turmoil. Worthy of mention that Mezzan has exited and concluded its business in Afghanistan, and all Mezzan employees were safely evacuated from the country.
● In Jordan revenue increased by 14.8% due to improving Mezzan’s logistics operations as well as introducing new products in the country.-- TradeArabia News Service
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