Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2020 Earnings Presentation
17 slides from Mezzan Holding Company Kscc's earnings presentation, Nov 16, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 Earnings Presentation November 16, 2020 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 Q3 2020 Highlights Historical Performance Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ Strong top line performance driven by consumer business despite recent reversal of trends (back to normal) - Food M&D ➜ ➜ ➜➜ - FMCG and Healthcare - Benefited from opportunistic business given COVID ➜➜ ➜ Gross margin expansion enhancing operating profit margins Higher o
Slide 5: Mezzan Today: Headwinds
Mezzan Today: Headwinds ➜ ➜ ➜ Catering revenue drop, albeit not impacting profitability ➜ Select market segments still closed schools etc. ➜ Slow activity of food services segment ➜ ➜ Supply chain disruptions issues for some portfolio items ➜➜ ➜ ➜ 5
Slide 6: Mezzan Today: Highlights
Mezzan Today: Highlights KD Millions EBITDA (2016-2020) 3Q20 3Q19 % Diff YTD20 YTD19 % Diff KD Millions Revenue 60.1 54.8 +9.7% 194.4 169.8 +14.5% Q1 Q2 Q3 Gross Pro t 15.2 12.4 +22.2% 47.1 38.7 +21.6% 21.4 18.8 17.7 5.6 EBITDA 5.6 4.9 +14.4% 21.4 17.7 +20.8% 5.0 16.1 14.6 4.9 4.8 3.4 Net Pro t 2.6
Slide 7: Mezzan Today: Historical Performance
Mezzan Today: Historical Performance KD Millions (a) Revenue Gross Profit Net Profit Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 194.4 47.1 13.1 169.8 156.2 157.6 161.5 40.0 40.6 38.7 35.1 3.1 10.1 10.3 60.1 15.2 9.1 8.0 2.1 47.7 49.8 52.0 54.8 12.1 12.7 2.8 1.8 10.4 12.4 1.2 59.9 4.8 2.0 1.8 2.2 15.3 3.5 52.8 50.3
Slide 8: Financial Review
Financial Review 8
Slide 9: YTD2020: Contribution by Business Line
YTD2020: Contribution by Business Line FOOD REVENUE +5.7% NON-FOOD REVENUE +37.1% Vs.YTD19 Vs.YTD19 66.6% Share of of total Group 33.4% Share of of total Group Revenue Revenue 9
Slide 10: YTD2020 Revenue: Growth by Business Division
YTD2020 Revenue: Growth by Business Division Vs.YTD19 Manufacturing FOOD &Distribution 46.0% of Group revenue +7.7% +5.7% Catering 13.6% of Group revenue -1.0% +14.5% Services 6.9% of Group revenue +7.2% NON-FOOD FMCG & +37.1% Healthcare 31.7% of Group revenue +41.2% Industrials 1.7% of Group revenu
Slide 11: Revenue: Contribution and Growth by Country YTD20
Revenue: Contribution and Growth by Country YTD20 Top-line Contribution Vs.YTD19 Kuwait UAE Qatar KSA Jordan Afghanistan Iraq 74.5% 9.8% 8.0% 1.9% 2.3% 2.4% 1.0% +21.3% -1.9% -9.2% +5.8% +8.9% -6.6% +68.9% 11
Slide 12: YTD2020: P&L
YTD2020: P&L KD Millions 3Q20 3Q19 % Diff YTD20 YTDQ19 % Diff Revenue 60.1 54.8 +9.7% 194.4 169.8 +14.5% Gross Margin 15.2 12.4 +22.2% 47.1 38.7 +21.6% GM% 25.3% 22.7% 24.2% 22.8% SG&A -11.8 -9.5 +24.6% -32.4 -26.6 +21.7% Others -0.7 -0.9 -30.2% -2.6 -2.6 +2.3% Underlying pro t before tax 2.7 2.0 +3
Slide 13: YTD2020: CASHFLOW
YTD2020: CASHFLOW KD Millions YTD20 YTD19 Diff Operating Cash Flow before WC changes 24.8 18.7 6.12 Working Capital 6.1 -13.5 19.58 Operating Cash Flow 30.9 5.2 25.70 CAPEX / Other investing activities -4.5 -26.1 21.60 Cash Flow before nancing 26.4 -20.9 47.30 Dividends / Financing / Other -8.4 -8.2
Slide 14: Balance Sheet as of Sep 30
Balance Sheet as of Sep 30 KD Millions Total Assets Equity Net Debt to Capitalization KD Millions KD Millions % Growth from previous period driven by acquisition and 112.2 41.0 growth 34.0 109.7 108.6 30.0 264.2 253.2 107.3 27.0 27.0 220.5 223.8 206.3 102.3 2016 2017 2018 2019 2020 2016 2017 2018 20
Slide 15: Net Debt as of Sep 30, 2020
Net Debt as of Sep 30, 2020 KD Millions Net Debt stood at c.KWD56.7 mn Down by c. KWD 18.7 mn from Sep 2019 levels and KWD 17.7 mn from Dec 2019 Net Debt / EBITDA of 2.3x Down from 4.0x in Sep 2019 and 3.6x in Dec 2019 Lowest in two years, back to pre-acquisition levels 75.4 74.4 73.0 57.6 56.7 53.1
Slide 16: Q&A
Q&A 16
Slide 17: 17
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