Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — FY2019 Earnings Presentation
19 slides from Mezzan Holding Company Kscc's earnings presentation, Apr 9, 2020
Slide 1: FY 2019 Earnings Presentation
FY 2019 Earnings Presentation April 9, 2020 1
Slide 2: Disclaimer
Disclaimer This confidential document is provided for informational purposes only. THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES IN ANY JURISDICTION. IT IS SOLELY FOR US
Slide 3: Agenda
Agenda Tailwinds & Headwinds 2019 Highlights Historical Performance Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ 2019 witnessed the start of recovery of operational results, driven by ➜ organic and inorganic initiatives ➜ UAE market returned to profitability, following restructuring, pickup in energy drink sales, and ramp up of new manufacturing lines ➜ ➜ New lines of snacks contr
Slide 5: Mezzan Today: Tailwinds (cont.)
➜ ➜ Mezzan Today: Tailwinds (cont.) ➜ Completed strategic goal of enhancing scope and scale of Healthcare segment, with ➜ ➜ Acquisition of majority stake in KSPICO Distribution rights of Medtronics and Covidien ➜ ➜ Strong results from expansion in healthcare business within FMCG ➜➜ ➜ segment Expansi
Slide 6: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ KSA performance weighed-in on operating results driven by widening spend of marketing and listing fees, and enhanced ➜ investing behind in-house distribution and listing fees Pressure continued in the Qatari bottled water market given ➜ capacity surplus, albeit counter
Slide 7: Board Recommendation
Board Recommendation The Board has recommended the distribution of 15 fils per share for the year 7
Slide 8: Mezzan Today: Highlights
Mezzan Today: Highlights KD Millions FY19 FY18 Change EBITDA (2016-2019) KD Millions Revenue 222.5 207.5 +7.2% 24.7 Gross Profit 48.7 44.0 +10.7% 20.9 EBITDA 18.5 15.6 +18.5% 18.5 15.6 Net Profit Attributable to Equity Holders of Parent 5.6 7.0 -19.0% Company FY2019 Results include impairment of goodw
Slide 9: Mezzan Today: Historical Performance
Mezzan Today: Historical Performance KD Millions Revenue Gross Profit Net Profit 53.8 53.4 222.5 48.7 17.2 207.4 204.5 207.5 44.0 12.9 2.4 6.7 6.3 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 Revenue driven by acquisitions into Profit margins increased by Operational profit recovery hea
Slide 10: Financial Review
Financial Review 10
Slide 11: Revenue: Contribution by Business Line
Revenue: Contribution by Business Line FOOD REVENUE +3.4% NON-FOOD REVENUE +18.9% Vs.FY18 Vs.FY18 72.1% Share of of total Group 27.9% Share of of total Group Revenue Revenue 11
Slide 12: Revenue: Growth by Business Division
Revenue: Growth by Business Division Vs.FY18 Manufacturing FOOD &Distribution 48.4% of Group revenue +5.8% +3.4% Catering 16.0% of Group revenue -6.1% +7.2% Services 7.8% of Group revenue +10.8% NON-FOOD FMCG & +18.9% Healthcare 25.6% of Group revenue +21.9% Industrials 2.3% of Group revenue -6.9% 1
Slide 13: Revenue: Contribution and Growth by Country
Revenue: Contribution and Growth by Country Vs.FY18 Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 69.4% 11.8% 10.3% 2.0% 2.5% 3.0% 0.9% +6.9% +8.4% +5.1% +13.5% -3.3% +23.1% +14.3% Strong growth in Start of Recovery of Strong performance In house investment Decreased by service Increased by service I
Slide 14: P&L
P&L KD Millions FY2019 FY2018 Change Revenue 222.5 207.5 +7.2% Gross Margin 48.7 44.0 +10.7% GM% 21.9% 21.2% SG&A -36.1 -33.5 +7.7% Impairment of assets of KWD 2.4 mn in 2019 Non-recurring gain on sale of PPE in 2018 of Others -6.1 -3.5 +75.2% KWD 1.0 mn Increase in finance expenses funding growth U
Slide 15: Cash flow
Cash flow KD Millions FY2019 FY2018 Diff Operating Cash Flow 22.3 17.0 5.3 before WC changes Working Capital -11.4 -6.5 -4.9 Operating Cash Flow 10.9 10.5 0.4 CAPEX / Other investing activities -28.8 -7.1 -21.8 Cash Flow before financing -17.9 3.5 -21.4 Dividends/Financing/Other -10.4 -14.3 3.9 Incre
Slide 16: Balance Sheet as of December 31
Balance Sheet as of December 31 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 74.4 41.4% 260.3 110.1 106.4 105.3 105.6 30.2% 211.7 217.1 210.9 23.9% 45.5 23.0% 34.5 31.8 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017
Slide 17: 2020 Outlook
2020 Outlook KD Millions FY2019 F2020 Sales 222.5 DD EBITDA 18.5 HDD Net Profit 6.3 HDD Capex (% of sales) c. 3% c. 4% (a) FY 2018 financial statement have been restated with an impairment of KWD750k relating to assets in Jordan. 17
Slide 18: Q&A
Q&A 18
Slide 19: 19
19
Mezzan Holding Company — FY2019 Earnings Presentation on 6ix