Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q1 2022 Earnings Presentation
17 slides from Mezzan Holding Company Kscc's earnings presentation, May 17, 2022
Slide 1: Q1 2022 Earnings Presentation
Q1 2022 Earnings Presentation May 17, 2022 1
Slide 2: Disclaimer
Disclaimer This con dential 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 Q1 2021Highlights Results Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ Price increases implemented in KSA ➜ Continuing to progress in KSA & UAE markets ➜ KITCO (Salty Snacks) launch in Jordan is on track ➜ ➜ ➜➜ ➜ ➜ 4
Slide 5: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ Cost inflation continues to increase sharply ➜ Kuwait pricing remained unchanged due to regulatory restraint Credit collection and payment issues in Qatar ➜ Maintenance and delay in KSPICO factory upgrade ➜ ➜ ➜ ➜ ➜ 5
Slide 6: Mezzan Today: Earnings Highlights
Mezzan Today: Earnings Highlights KD Millions % Diff Q1 EBITDA (2019-2022) Q1’22 Q1’21 KD Millions Revenue 72.5 73.4 -1.2% 8.6 8.7 7.9 EBITDA 6.2 8.7 -28.3% 6.2 Net Income 3.1 5.6 -44.9% Net Pro t 2.9 5.0 Attributable to Equity Holders of Parent -40.7% Company 2019 2020 2021 2022 EBITDA: Lower by 28
Slide 7: Mezzan Today: Q1 Historical Performance
Mezzan Today: Q1 Historical Performance KD Millions Q1 Revenue Q1 Gross Profit Q1 Net Profit 74.4 73.4 72.5 5.1 16.6 16.2 5.0 4.6 62.6 14.5 14.6 2.9 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 7
Slide 8: Financial Review
Financial Review 8
Slide 9: Q1'22 Revenue: Contribution by Business Line
Q1’22 Revenue: Contribution by Business Line FOOD REVENUE +2.7% NON-FOOD REVENUE -7.3% Vs.Q1’21 Vs.Q1’21 63.2% Share of of total Group 36.8% Share of of total Group Revenue Revenue 9
Slide 10: Q1'22 Revenue: Growth by Business Division
Q1’22 Revenue: Growth by Business Division Vs.Q1’21 Manufacturing FOOD &Distribution 49.9% of Group revenue +7.2% +2.7% Catering 9.4% of Group revenue -7.6% -1.2% Services 4.0% of Group revenue -18.3% NON-FOOD FMCG & -7.3% Healthcare 34.8% of Group revenue -8% Industrials 2.0% of Group revenue +5.7%
Slide 11: Q1'22 Revenue: Contribution and Growth by Country
Q1’22 Revenue: Contribution and Growth by Country Top-line Contribution Vs.Q1’21 Kuwait UAE Qatar KSA Jordan Iraq 75.2% 12.3% 6.3% 2.7% 2.7% 0.7% -4.8% +21.7% +4.1% +36% +11% +2.4% 11
Slide 12: Q1'22: P&L
Q1’22: P&L KD Millions Q1’22 Q1’21 % Di Revenue 72.5 73.4 -1.2% Gross Margin 14.6 16.2 -10.1% GM % 20.1% 22.1% Gross Margin: Lower by 10% (KWD -1.6mn) Gross Margin: 20.1% SG&A / Other -10.7 -9.8 9.4% vs 22.1% = -2.0%. Impacted by the severe setback in the global Operating Pro t 3.9 6.4 -39.5% econom
Slide 13: Q1'22: Cashflow
Q1’22: CASHFLOW KD Millions Q1’22 Q1’21 Di Operating Cash ow before WC changes 7.7 9.2 -1.5 Working Capital / Other -2.0 -2.6 0.6 Lower operating cash flow driven by Operating Cash ow 5.7 6.6 -0.9 lower net profit and higher capital spend. Capital / Other -8.0 -1.5 -6.5 Net Capital Spent (Capex) of
Slide 14: Balance Sheet as of March 31, 2022
Balance Sheet as of March 31, 2022 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 276.9 267.6 277.5 123.4 73.0 38.0% 121.7 118.9 225.4 115.5 32.3% 58.2 28.6% 28.6% 49.5 45.9 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 2019 20
Slide 15: A note on debt levels
A note on debt levels KD Millions Net Debt stood at KWD 58.2mn: Up by KWD 5.2mn from Dec 2021 levels, mainly due to 1.2mn increase in bank overdraft and 2.3mn decrease in cash balances. Net Debt / EBITDA of 3.01x (Yearly) up by 0.27x vs Dec 2021. 4 4 3.8 3.1 3 2.9 2.8 2.7 2.6 2.4 2.4 2.2 2.3 2.1 2.1
Slide 16: Q&A
Q&A 16
Slide 17: Investor Relations Contact
Investor Relations Contact Omar Fouda Investor Relations Manager omar.fouda@mezzan.com 17
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