Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding — Q1 2016 Earnings Presentation
16 slides from Mezzan Holding Company Kscc's earnings presentation, May 3, 2016
Slide 1: Q1 2016 Earnings Presentation
Q1 2016 Earnings Presentation May 3, 2016
Slide 2: Today's Agenda
Today’s Agenda ๏ Q1 Highlights ๏ 2016 Financials ๏ 2016 Outlook ๏ Q&A 2 X
Slide 3: Q1 Highlights
Q1 Highlights Q1 Tailwinds Q1 Headwinds ✓ Broad-based growth across most product lines. • Catering contracts gap. ✓ Distribution gains in key product lines. • Discretionary products in UAE ✓ Continued growth in market share. • Slowing macro environment ✓ Double digit growth in water in Qatar. ✓ Succ
Slide 4: Q1 Highlights: Best Q1 ever
Q1 Highlights Best Q1 ever Revenue / Quarter (KD m) 55.7 52.9 51.6 47.8 46.0 46.3 44.8 45.3 43.9 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 4 X
Slide 5: Financial Review
Financial Review 5
Slide 6: Q1 2016 Revenue Segmentation and Discussion
Q1 2016 Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in Q1 2016. White: Revenue growth in Q1 2016. Food Business Line Catering ➜ -15.6% 2.7% 11.2% Manufacturing KD37.2 Distribution ➜ (66.9% of total 47.8% Services 5.5% ➜ revenue) 7.9% 19.6% Commentary Manufact
Slide 7: Q1 2016 Revenue Segmentation and Discussion
Q1 2016 Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in Q1 2016. White: Revenue growth in Q1 2016. Non Food Business Line FMCG and Pharma ➜ 11.0% ➜ 12.5% 30.3% KD18.4 m (33.1% of total revenue) Industrials -2.7% 2.8% Commentary FMCG and Pharma: Q1 Revenue grew
Slide 8: Q1 2016 Revenue by country
Q1 2016 Revenue by country Red: Revenue contribution to total Group revenue in Q1 2016. White: Revenue growth in Q1 2016. Kuwait UAE Qatar Jordan Afghanistan Iraq 70.3% 14.0% 8.5% 4.7% 1.8% 0.4% ➜ ➜ ➜ 5.8% -8.3% 15.9% 71.7% -1.5% -69% Commentary Kuwait: Outside of Catering, all businesses in Kuwait
Slide 9: Q1 2016 P&L (KD m)
Q1 2016 P&L (KD m) Revenue 55.7 +5.3% Growth in Food and Non-Food. Gross Margin 14.3 +6.5% Driven by Food Manufacturing and Distribution. GM% 25.7% SG&A / Other (8.4) +10.4% FX and phasing of Marketing spend. Operating Profit 5.9 +1.4% Other (0.3) +54.4% Finance Costs and BOD Fees. Profit before tax
Slide 10: Q1 2016 Cash Flow & Balance Sheet (KD m)
Q1 2016 Cash Flow & Balance Sheet (KD m) Operating Cash Flow before WC changes 7.4 Working Capital (2.8) Increases in AR and Inventory Operating Cash Flow 4.5 Capital / Other (2.4) Capex @ 4.4% of Revenue. Cash Flow before financing 2.1 Financing Costs / Other (0.3) Decrease in Net Debt 1.8 Balance
Slide 11: 2016 Commentary and Outlook
2016 Commentary and Outlook 11
Slide 12: Mezzan's portfolio is well-positioned
Mezzan’s portfolio is well-positioned ~80% 70% 20% 30% Household staples 70% of revenue is generated from comprise ~80% of Kuwait, the most stable economy product portfolio within MENA countries, and least affected by drop in oil prices 12
Slide 13: 2016 Guidance - Unchanged
2016 Guidance - Unchanged. 2015 2016 Revenue KD 196.1 m HSD to LDD Growth Underlying Net Profit KD 17.2 m HSD to LDD Growth Capital Investment ~ 3% of Revenue ~ 5% of Revenue Underlying Net Profit: Net Profit attributable to equity shareholders of parent company of KD 14.9 m, less the impact of KLOC se
Slide 14: Thank you
Thank you On our one-year anniversary of the day we started public reporting, the Board and Management Team would like to thank the analysts and investors who have been diligently following and analysing our performance. NBK Capital Arqaam Capital CITI BANK Global Investment House Thank you! 14 X
Slide 15: Q&A
Q&A
Slide 16: Key Contacts
Key Contacts Mohamed Shawky Group Head of Investor Relations Mezzan Holding T: +965 2484 6433 M : +965 9800 6058 E : mohamed.shawky@mezzan.com ir@mezzan.com