Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q2 2016 Earnings Presentation
14 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 7, 2016
Slide 1: Q2 2016 Earnings Presentation
Q2 2016 Earnings Presentation August 7, 2016
Slide 2: Today’s Agenda
Today’s Agenda ๏ Q2 Highlights ๏ Financial Review ๏ KSA Transaction ๏ 2016 Outlook ๏ Q&A 2
Slide 3: Q2 Highlights
Q2 Highlights Q2 Headwinds Q2 Tailwinds • Catering in Kuwait still a challenge • Catering contract with KOC started mid- • Discretionary products in UAE May • Core Food business performed well • Macro environment still challenging • Distribution gains in key product lines • Continued growth in marke
Slide 4: Financial Review
Financial Review 4
Slide 5: YTD Revenue Segmentation and Discussion
YTD Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in H1 2016. White: Revenue growth in H1 2016. Food Business Line Catering ➜ 11.7% -13.0% 2.9% KD77.4 ➜ Manufacturing Distribution (71.3% of total Services ➜ 52.0% 7.7% ➜ revenue) 8.2% -1.9% YTD commentary Manufa
Slide 6: YTD Revenue Segmentation and Discussion
YTD Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in H1 2016. White: Revenue growth in H1 2016. Non Food Business Line FMCG and Pharma ➜ 5.6% ➜ 7.2% 25.7% KD30.9 m (28.5% of total revenue) Industrials ➜ -7.0% 2.8% Commentary FMCG and Pharma: YTD Revenue grew by
Slide 7: YTD Revenue by country
YTD Revenue by country Red: Revenue contribution to total Group revenue in Q2 2016. White: Revenue growth in Q2 2016. Kuwait UAE Qatar Jordan Afghanistan Iraq 68.6% 15.3% 9.0% 4.5% 2.0% 0.5% ➜ ➜ ➜ ➜ ➜ ➜ 5.2% - 6.4% 14.2% 25.5% 0.2% - 65.4% Commentary Kuwait: Strong growth Kuwait in Food - which was
Slide 8: Q2 and YTD P&L (KD m)
Q2 and YTD P&L (KD m) Q2’16 YTD’16 Revenue 52.8 +2.4% 108.5 +3.9% Growth in Food and Non Food Gross Margin 13.6 27.9 GM% 25.7% -0.3 25.7% 0.0 SG&A / Other (8.0) +1.1% (16.4) +5.7% Primarily Marketing phasing and FX Underlying Operating Profit 5.5 +1.3% 11.5 +1.4% Other (0.3) +34.5% (0.7) +43.8% Fina
Slide 9: YTD Cash Flow & Balance Sheet (KD m)
YTD Cash Flow & Balance Sheet (KD m) Operating Cash Flow before WC changes 14.1 Working Capital (6.6) Progress on base; investment in new business Operating Cash Flow 7.6 Capital / Other (3.3) Capex @ 3.1% of Revenue; will be higher in H2 Cash Flow before financing 4.2 Dividends / Financing / Other
Slide 10: 2016 Commentary and Outlook
2016 Commentary and Outlook 10
Slide 11: KSA Transaction Update
KSA TRANSACTION UPDATE • Mezzan is acquiring a 70% stake in Al Safi Food Company, currently owned by Saudi Arabia’s Al Faisaliah Group, which will retain the remaining 30% stake, thereby establishing a JV in the Saudi food manufacturing and distribution sector with a strong local partner. • The JV w
Slide 12: 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 Excludes the impact of the KSA transaction Underlying Net Profit: Net Profit attributable to equity shareholders of parent co
Slide 13: Q&A
Q&A
Slide 14: 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
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