Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q1 2019 Earnings Presentation
15 slides from Mezzan Holding Company Kscc's earnings presentation, May 13, 2019
Slide 1: Q1'2019 Earnings Presentation
Q1’2019 Earnings Presentation May 13, 2019 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 By Families Q1 2019 Highlights For Families Headwinds & Tailwinds Results Financial Review Q&A 3
Slide 4: Mezzan Today: Q1'19 Tailwinds
➜ ➜ Mezzan Today: Q1’19 Tailwinds ➜ Strong revenue base despite challenging and complex market conditions ➜ Strong performance in Food Manufacturing and Distribution, Food ➜ Services, and as well as non-Food FMCG segment Significant improvement in UAE operations following cost cutting ➜ ➜ initiative
Slide 5: Mezzan Today: Q1'19 Headwinds
➜ ➜ Mezzan Today: Q1’19 Headwinds ➜➜ Increased spend in KSA on listing fees and expanding distribution have slowed down profitability despite growth in Sales ➜ Persistence of water competition in Qatar, continued compression of margins ➜ ➜ Lack of lucrative catering opportunities in the Kuwait marke
Slide 6: Mezzan Today: Q1'19 Highlights
Mezzan Today: Q1’19 Highlights KD Millions Q1 EBITDA (2016-2019) Q1’19 Q1’18 % KD Millions Change Revenue 62.6 58.8 6.5% 9.8% 7.9 Gross Profit 14.5 13.4 8.4% 7.3 7.2 7.1 EBITDA 7.9 7.2 9.8% Net Profit Attributable to Equity Holders of 5.1 5.0 1.7% Parent Company Q1 2016 Q1 2017 Q1 2018 Q1 2019 Driven
Slide 7: Mezzan Today: Q1 Historical Performance
Mezzan Today: Q1 Historical Performance As of March 31 for each year KD Millions Revenue Gross Profit Net Profit 62.6 15.2 5.3 57.5 58.8 14.5 55.7 14.3 5.1 5.1 13.4 5.0 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 Revenue grew by 6.5% this quarter Gross profit increased by a 8.4%, Net
Slide 8: Financial Review
Financial Review 8
Slide 9: Q1'19 Revenue: Contribution by Business Line
Q1’19 Revenue: Contribution by Business Line FOOD REVENUE +6.8% NON-FOOD REVENUE +6.1% Vs. Q1’18 Vs. Q1’18 68.0% Share of of total Group 32.0% Share of of total Group Revenue Revenue 9
Slide 10: Q1'19 Revenue: Growth by Business Division
Q1’19 Revenue: Growth by Business Division Vs. Q1’18 Manufacturing FOOD &Distribution 47.7% of Group revenue +11.0% +6.8% Catering 14.1% of Group revenue -7.5% Services 6.2% of Group revenue +13.6% NON-FOOD FMCG & +6.1% Pharma 29.7% of Group revenue +6.4% Industrials 2.3% of Group revenue +1.4% 10
Slide 11: Q1'19 Revenue: Contribution and Growth by Country
Q1’19 Revenue: Contribution and Growth by Country Vs. Q1’18 Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 72.5% 11.2% 9.0% 2.3% 2.5% 2.3% 0.3% +2.9% +26.2% +9.1% +19.1% +30.4% +35.5% -65.9% 11
Slide 12: Q1'2019 Review
Q1’2019 Review P&L Cash Flow Q1’19 Q1’18 Q1'19 Q1'18 % Diff Diff Operating Cash Flow 7.9 7.5 0.4 Revenue 62.6 58.8 6.5% before WC changes Gross Margin 14.5 13.4 8.4% Working Capital -6.0 -3.6 (2.4) GM% 23.1% 22.7% Operating Cash Flow 2.0 3.9 (1.9) SG&A -8.4 -7.6 11.2% CAPEX / Other investing activitie
Slide 13: Balance Sheet as of Mar 31st
Balance Sheet as of Mar 31st Total Assets +4.9% Equity +2.7% Net Debt +15.7% Net Debt to Equity (%) KD Millions KD Millions KD Millions KD Millions 225.4 45.9 41.3% 216.8 221.2 115.7 111.4 111.1 195.5 102.6 31.6% 35.2 34.5 28.9% 29.8% 29.7 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
Slide 14: Q&A
Q&A 14
Slide 15: Key Contacts
Key Contacts Mohammad Khajah Head of Corporate Development and Investor Relations Mezzan Holding T: +965 2228 6336 M : +965 9977 0147 E : mohammed.Khajah@mezzan.com 15
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