Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2023 Earnings Presentation
18 slides from Mezzan Holding Company Kscc's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation November 9, 2023 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 U
Slide 3: Agenda
Agenda Tailwinds & Headwinds Q3 2023 Highlights Historical Performance Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ Non recurrence of one-off adjustments performed in 2022. ➜ Recovery of healthcare business after resuming supply to KSA. ➜ Discontinuation of non-accretive contracts in catering segment. ➜ ➜ Effective management of product/channel mix enabling profitable growth. Improve
Slide 5: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ Increased interest rates yielding additional burden on financing cost. ➜ Increase inventory levels to fuel growth. Evolving tax environment in GCC. ➜ ➜ ➜ ➜ ➜ ➜ 5
Slide 6: Mezzan Today: Earnings Highlights
Mezzan Today: Earnings Highlights KD Millions Q3 EBITDA (2020-2023) KD Millions Q3’23 Q3’22 % Diff YTD’23 YTD’22 % Diff 5.6 6.0 Revenue 65.2 60.6 +7.6% 205.5 194.5 +5.7% 5.2 EBITDA 6.0 -5.2 +216% 19.9 3.1 +539% Net Income 2.4 -8.3 +129% 9.0 -6.3 +243.5% -5.2 Net Profit 2.2 -8.4 +125.7% 8.1 -6.5 +224
Slide 7: Mezzan Today: Q3 Comparative Performance
Mezzan Today: Q3 Comparative Performance KD Millions Q3 Revenue Q3 Gross Profit Q3 Net Profit to Parent 15.2 65.2 14.5 60.1 60.6 57.2 2.3 2.2 2.1 11.0 11.5 -8.4 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 Q3 evenue grew by 7.6% as In Q3, gross profit increased Net income improved bot
Slide 8: Financial Review
Financial Review 8
Slide 9: YTD'23 Revenue: Contribution by Business Line
YTD’23 Revenue: Contribution by Business Line FOOD REVENUE +2.3% NON-FOOD REVENUE +12.7% Vs.YTD’22 Vs.YTD’22 65.3% Share of of total Group 34.7% Share of of total Group Revenue Revenue 9
Slide 10: YTD'23 Revenue: Growth by Business Division
YTD’23 Revenue: Growth by Business Division Vs.YTD’22 Manufacturing FOOD &Distribution 52.9% of Group revenue +7.5% +2.3% Catering 7.4% of Group revenue -25.8% +5.7% Services 5% of Group revenue +7% NON-FOOD FMCG & +12.7% Healthcare 32.3% of Group revenue +13.5% Industrials 2.3% of Group revenue +2.
Slide 11: YTD'23 Revenue: Contribution and Growth by Country
YTD’23 Revenue: Contribution and Growth by Country Top-line Contribution Vs.YTD’22 Kuwait UAE Qatar Jordan KSA Iraq 72.9% 12.6% 7.1% 3.7% 2.6% 1% +8.1% -2.3% -3.5% +18% -4.3% +1.5% 11
Slide 12: YTD'23 Revenue: Contribution and Growth by Country (With Export)
YTD’23 Revenue: Contribution and Growth by Country (With Export) Top-line Contribution Vs.YTD’22 Kuwait UAE Qatar Jordan KSA Iraq Bahrain 69.3% 13.2% 7.5% 4% 4.7% 1% 0.2% +5.6% -0.5% -1.9% +19.6% +32.6% +1.5% +46.2% 12
Slide 13: YTD'23: P&L
YTD’23: P&L KD Millions Q3’23 Q3’22 % Diff YTD’23 YTD’22 % Diff Revenue 65.2 60.6 7.6% 205.5 194.5 5.7% Gross Margin 14.5 11.5 26.2% 44.0 37.1 18.7% GM % 22.2% 18.9% 21.4% 19.1% SG&A / Other -10.6 -18.9 -44.0% -30.6 -40.9 -25.2% Operating Profit 3.9 -7.4 152.1% 13.4 -3.8 451% Other -1.5 -1.0 50.6% -4.
Slide 14: YTD'23: Cashflow
YTD’23: CASHFLOW KD Millions Q3’23 Q3’22 Diff YTD’23 YTD’22 Diff Operating Cashflow before WC changes 6.2 -0.1 6.2 20.6 12.1 8.6 Cash on hand as of September 2023, Working Capital / Other 0.9 5.5 -4.6 -6.3 -4.3 -1.9 lower by KWD 2.8mn primarily due to: •Lower proceeds from loans and Operating Cashflow
Slide 15: Balance Sheet as of Sep 30, 2023
Balance Sheet as of Sep 30, 2023 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 121.3 37.9 117.7 65.1 63.6 35.4 116.1 270.8 31.3 30.6 53.5 53.4 106.5 264.8 260.1 252.9 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 202
Slide 16: A note on debt levels
A note on debt levels KD Millions As of 30 September 2023: Net Debt stood at KWD 63.6 mn, down by KWD 4mn from June 2023 levels, and lower by KWD 1.56 mn from September 2022 levels. - LTM Net Debt / EBITDA of 2.2x down by 10x vs Q3 2022 12.2 67.7 65.1 64.2 67.6 63.6 56.7 58.2 56.0 53.5 49.5 51.0 53.
Slide 17: Q&A
Q&A 17
Slide 18: Investor Relations Contact
Investor Relations Contact Omar Fouda Investor Relations Manager omar.fouda@mezzan.com 18
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