Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2022 Earnings Presentation
17 slides from Mezzan Holding Company Kscc's earnings presentation, Nov 14, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation November 14, 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 YTD 2022 Results YTD 2022 Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ Strong performance in Food Manufacturing and Distribution segment. ➜ Rising Consumer Demand. ➜ Underlying profit improvement. ➜ ➜ Significant improvement in UAE and KSA operations. ➜➜ ➜ ➜ 4
Slide 5: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ Inflation remains enemy #1: Continued compression of margins. ➜ Further delay in Qatar collection, now moving in Q4. Lack of performance of the pharma business. ➜ Pressure from UAE excise tax. ➜ ➜ ➜ ➜ ➜ 5
Slide 6: Mezzan Today: Earnings Highlights
Mezzan Today: Earnings Highlights KD Million Q3 EBITDA (2019-2022) Q3’22 Q3’21 % Diff YTD’22 YTD’21 % Diff KD Millions Revenue 60.6 57.2 +6.0% 194.5 191.2 1.7% EBITDA -5.2 5.2 -199% 3.1 19.6 -84% 5.6 4.9 5.2 Net Income -8.3 2.4 -445% -6.3 10.8 -158.3% Net Pro t -8.4 2.3 -467% -6.5 9.5 -168.4% -5.2 A
Slide 7: Mezzan Today: Q3 Historical Performance
Mezzan Today: Q3 Historical Performance KD Million Q3 Revenue Q3 Gross Profit Q3 Net Profit 15.2 60.1 60.6 2.3 57.2 2.1 54.8 12.4 1.8 11.0 11.5 -8.4 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 7
Slide 8: Financial Review
Financial Review 8
Slide 9: YTD’22 Revenue: Contribution by Business Line
YTD’22 Revenue: Contribution by Business Line FOOD REVENUE +5.8% NON-FOOD REVENUE —5.7% Vs.YTD’21 Vs.YTD’21 67.5% Share of of total Group 32.5% Share of of total Group Revenue Revenue 9
Slide 10: YTD’22 Revenue: Growth by Business Division
YTD’22 Revenue: Growth by Business Division Vs.YTD’21 Manufacturing FOOD &Distribution 52% of Group revenue +10.8% +5.8% Catering 10.6% of Group revenue -10.1% 1.7% Services 4.9% of Group revenue -4.3% NON-FOOD FMCG & -5.7% Healthcare 30.1% of Group revenue -6.8% Industrials 2.4% of Group revenue +1
Slide 11: YTD’22 Revenue: Contribution and Growth by Country
YTD’22 Revenue: Contribution and Growth by Country Top-line Contribution Vs.YTD’21 Kuwait UAE Qatar KSA Jordan Iraq 71.2% 13.6% 7.8% 2.9% 3.3% 1% -2.1% +17.5% +2.9% +36.4% +19.5% +10.6% 11
Slide 12: YTD’22: P&L
YTD’22: P&L KD Millions Q3’22 Q3’21 % Di YTD’22 YTD’21 % Di Revenue 60.6 57.2 5.9% 194.5 191.2 1.7% Gross Margin 11.5 11.0 4.4% 37.1 40.5 -8.4% GM % 18.9% 19.2% 19.1% 21.2% SG&A / Other -18.9 -7.9 139.5% -40.9 -27.4 -49.2% Operating Pro t -7.4 3.1 -341.7% -3.8 13.1 -129.3% Other -1.0 -0.5 96.6% -2.4
Slide 13: YTD’22: Cashflow
YTD’22: CASHFLOW KD Millions 2022 2021 Di Operating Cash ow before WC changes 12.1 21.2 -9.1 Working Capital / Other -4.3 -3.5 -0.9 Operating Cash ow 7.7 17.8 -10.0 In 2022, lower operating cash flow Capital / Other -8.9 -8.3 -0.7 driven by lower net profit and higher capital spend. Cash ow before F
Slide 14: Balance Sheet as of Sep 30, 2022
Balance Sheet as of Sep 30, 2022 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 39.1% 37.9% 264.2 267.5 264.8 121.1 75.4 253.2 120.1 117.4 65.1 31.9% 30.6% 56.7 53.0 106.5 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020
Slide 15: A note on debt levels
A note on debt levels KD Millions Net Debt stood at KWD 65.1mn Up by KWD 12.1mn from September 2021 levels, mainly due to 8.9mn net increase in Capital Investment and 4.9mn decrease in cash balances. Net Debt / EBITDA of 4.1 (Yearly) up by 1.9 vs September 2021 4.3 4.1 4.0 4.0 3.8 3.1 3.0 2.9 2.8 2.
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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