Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q3 2016 Earnings Presentation
14 slides from Mezzan Holding Company Kscc's earnings presentation, Nov 9, 2016
Slide 1: Q3 2016 Earnings Presentation
Q3 2016 Earnings Presentation November 9, 2016 1
Slide 2: Today's Agenda
Today’s Agenda ๏ YTD Headline Results ๏ Mezzan Foods KSA - update ๏ Q3 Highlights ๏ YTD Revenue Segmentation and Discussion ๏ 2016 Outlook ๏ Q&A 2
Slide 3: YTD Highlights (KD m)
YTD Highlights (KD m) One-off gains Q3ʼ14: KD 1m resulting from a land sale plus KD 0.4 million from indemnity Revenue Underlying Net Profit Reported Net Profit accrual reduction. Q3ʼ15: KD0.7m, a 0.7 settlement resulting from 46.3 47.7 3.1 1.4 a distribution agreement 43.9 3.0 0.7 0.7 termination.
Slide 4: Mezzan Foods KSA - update
Mezzan Foods KSA - update Tu T r u n r - n A - r o A u r onudn P d la n Plan r o u n d P l a n • Trading in-line with our expectations Turn-A Streamline Opeerations Streamlin Operations LeveraLge scalesc Lever ever strengstth res, , dralive age agou Gr ngbu eG e, dgr G rive roow u proup ildbuild ths
Slide 5: Q3 Highlights
Q3 Highlights Q3 Tailwinds Q3 Headwinds • Core Food Business performed well, led • Macro environment still challenging by in-house brands • Catering profitability to follow • New catering contracts reversed a • Mezzan Foods (KSA) one-off previously declining top-line trend, acquisition cost, Operati
Slide 6: YTD Revenue Segmentation and Discussion
YTD Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in YTD 2016. White: Revenue growth in YTD 2016. Catering Food Business Line ➜ -7.1% ➜ 12.3% +4.5% Manufacturing Distribution ➜ KD114.0 m (73.0% of total +7.3% Services ➜ 8.5% revenue) 52.3% +6.5% Strong performa
Slide 7: YTD Revenue Segmentation and Discussion
YTD Revenue Segmentation and Discussion Red: Revenue contribution to total Group revenue in YTD 2016. White: Revenue growth in YTD 2016. Non Food Business Line FMCG and Pharma ➜ +0.8% ➜ +2.4% 24.2% KD42.0 m (27% of total revenue) Industrials ➜ -11.3% 2.8% FMCG business holding well despite softening
Slide 8: YTD Revenue by country
YTD Revenue by country Red: Revenue contribution to total Group revenue YTD 2016. White: Revenue growth YTD 2016. Kuwait UAE Qatar Jordan Afghanistan Iraq 66.8% 16.3% 9.3% 4.6% 2.1% 0.6% ➜ ➜ ➜ ➜ ➜ ➜ 3.8% - 3.9% 12.4% 28.2% -2.7% -52.4% Commentary Kuwait: Strong growth in Food - buoyed by Danone and
Slide 9: Q3 and YTD P&L (KD m)
Q3 and YTD P&L (KD m) Q3’16 YTD’16 Commentary Driven by strong growth in Food busines (incl. Danone), Services and Revenue 47.7 +3.0% 156.2 +3.6 FMCG Gross Margin 12.1 -2.3% 40.0 +1.9% Impact of new catering business (to ramp up to profitability) GM% 25.4% 25.6% -0.4 Increased by 4.0%. primarily by
Slide 10: YTD Cash Flow & Balance Sheet (KD m)
YTD Cash Flow & Balance Sheet (KD m) Operating Cash Flow before WC changes 19.2 Working Capital (11.8) Progress on base; investment in new business Operating Cash Flow 7.3 Capital / Other (4.9) CAPEX at 3.3% of Revenue Cash Flow before financing 2.4 Dividends / Financing / Other (9.3) Includes divid
Slide 11: Commentary and Outlook
2016 Commentary and Outlook 11
Slide 12: 2016 Guidance
2016 Guidance 2015 2016 Underlying Net KD 17.2 m On-track- Profit excluding KSA Revenue KD 196.1 m ~4% to 7% 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 settlement inc
Slide 13: Q&A
Q&A 13
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 14
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