Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q2 2022 Earnings Presentation
17 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 15, 2022
Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation August 15, 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 H1 2022 Results H1 2022 Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ Saudi, UAE and Qatar Food segment continue to improve. ➜ Kuwait demand holding up well. ➜ Jordan KITCO salty snacks launch remains on track. ➜ ➜ ➜➜ ➜ ➜ 4
Slide 5: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ Inflation – uncertainty around supply and pricing continues to be a strain. ➜ Receivables – Good long-term, customers in short-term difficulties. Staff churn. ➜ Delay in KSPICO factory upgrade. ➜ ➜ ➜ ➜ ➜ 5
Slide 6: Mezzan Today: Earnings Highlights
Mezzan Today: Earnings Highlights KD Millions Q2 EBITDA (2019-2022) Q2’22 Q2’21 % Diff H1’22 H1’21 % Diff KD Millions Q2 Revenue 61.5 60.7 +1.4% 134.0 134.0 0.0% EBITDA 2.1 5.7 -63.7% 8.3 14.3 -42.3% Net Income -1.0 2.8 -137.2% 2.0 8.3 -75.6% 7.2 5.7 4.9 Net Pro t -1.1 2.3 -146.2% 1.9 7.2 -73.9% 2.1
Slide 7: Mezzan Today: Q2 Historical Performance
Mezzan Today: Q2 Historical Performance KD Millions Q2 Revenue Q2 Gross Profit Q2 Net Profit 15.3 3.5 59.9 60.7 61.5 13.3 52.4 11.8 2.3 11.1 2.2 -1.1 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 7
Slide 8: Financial Review
Financial Review 8
Slide 9: H1'22 Revenue: Contribution by Business Line
H1’22 Revenue: Contribution by Business Line FOOD REVENUE +3.9% NON-FOOD REVENUE —6.9% Vs.H1’21 Vs.H1’21 66% Share of of total Group 34% Share of of total Group Revenue Revenue 9
Slide 10: H1'22 Revenue: Growth by Business Division
H1’22 Revenue: Growth by Business Division Vs.H1’21 Manufacturing FOOD &Distribution 51.6% of Group revenue +9.6% +3.9% Catering 9.8% of Group revenue -13.3% 0% Services 4.5% of Group revenue -10.9% NON-FOOD FMCG & -6.9% Healthcare 31.5% of Group revenue -8.1% Industrials 2.3% of Group revenue +13.3
Slide 11: H1'22 Revenue: Contribution and Growth by Country
H1’22 Revenue: Contribution and Growth by Country Top-line Contribution Vs.H1’21 Kuwait UAE Qatar KSA Jordan Iraq 72.8% 13.3% 7% 2.8% 3.1% 1% -3.8% +21.6% -1.9% +38.1% +16.7% +5.3% 11
Slide 12: H1'22: P&L
H1’22: P&L KD Millions Q2’22 Q2’21 % Di H1’22 H1’21 % Di Revenue 61.5 60.7 1.4% 134.0 134.0 0% Gross Margin 11.1 13.3 -16.9% 25.6 29.5 -13.1% GM % 18.0% 21.9% 19.1% 22.0% -2.9% SG&A / Other -11.3 -9.8 -16% -22.0 -19.5 -12.7% Operating Pro t -0.3 3.5 -107.9% 3.6 10.0 -63.7% Other -0.7 -0.6 -18% -1.4
Slide 13: H1'22: Cashflow
H1’22: CASHFLOW KD Millions 2022 2021 Di Operating Cash ow before WC changes 12.1 15.4 -3.3 Working Capital changes* -9.8 -2.3 -7.5 Operating Cash ow 2.3 13.1 -10.7 In 2022, lower operating cash flow Net cash used in Investing activities -8.0 -2.9 -5.1 driven by lower net profit and higher capital s
Slide 14: Balance Sheet as of June 30, 2022
Balance Sheet as of June 30, 2022 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 262.7 268.5 67.7 37.2% 256.7 119.1 120.3 57.6 32.0% 32.6% 221.9 114.9 53.1 29.8% 112.7 51.0 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 2019 202
Slide 15: A note on debt levels
A note on debt levels KD Millions Net Debt stood at KD 67.7 million: Up by KD 16.7. million from June 2021 levels, mainly due to 5.1 million increase in Capital Investment and KD 11.6 million decrease in cash balances. Net Debt / EBITDA of 4.3 (Yearly) up by 2.2 vs June 2021. 4.3 4 4 3.8 3.7 3.4 3.1
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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