Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — FY2023 Earnings Presentation
18 slides from Mezzan Holding Company Kscc's earnings presentation, Mar 12, 2024
Slide 1: FY 2023 Earnings Presentation
FY 2023 Earnings Presentation March 12, 2024 1
Slide 2: Disclaimer
Disclaimer This conÞdential 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 Q4 & FY23 Highlights Q4 & FY23 Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ Margin improvement through effective product/channel mix, and localization of manufacturing footprint. ➜ Benefits from the non-recurrence of the one-off adjustment that adversely ➜ ➜➜ hit the performance of 2022. Good growth momentum in our Pharma and Healthcare busines
Slide 5: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ Additional burden yielded from the peak in interest rates. Evolving tax environment in the GCC. ➜ The ÒRed Sea crisisÓ had no material impact so far, thus leading us to maintain critical inventory at high level to avoid business disturbance. ➜ ➜ ➜ ➜ ➜ ➜ 5
Slide 6: Mezzan Today: Earnings Highlights
Mezzan Today: Earnings Highlights KD Millions FY EBITDA (2020-2023) KD Millions Q4Õ23 Q4Õ22 % Diff FYÕ23 FYÕ22 % Diff Revenue 65.6 60.6 +8.2% 271.2 255.2 +6.3% 27.9 EBITDA 8.1 8.5 -4.9% 27.9 11.6 +141.1% 25.4 21.8 Net Income 3.7 4.6 -18.6% 12.7 -1.7 Net ProÞt 3.4 4.6 -26.3% 11.5 -2.0 11.6 Attributab
Slide 7: Mezzan Today: Board Recommendation
Mezzan Today: Board Recommendation KD Millions The Board of Directors CASH DIVIDEND has recommended the PAYOUT RATIO OF 55% distribution of 20 Þls per Total Cash Dividend Payout of KD 6.2 mn. share for FY2023* *Subject to shareholder approval at Annual General Meeting of Shareholders. 7
Slide 8: Mezzan Today: FY Comparative Performance
Mezzan Today: FY Comparative Performance KD Millions FY Revenue FY Gross Profit FY Net Profit 11.5 271.2 61.5 10.9 255.2 59.3 246.4 245.1 53.0 51.5 8.4 -2.0 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 SigniÞcant increase in Margins improved, achieving an increase of 267 bps Net ProÞt
Slide 9: Financial Review
Financial Review 9
Slide 10: FY2023 Revenue: Contribution by Business Line
FY2023 Revenue: Contribution by Business Line FOOD REVENUE +1.8% NON-FOOD REVENUE +16% Vs.FYÕ22 Vs.FYÕ22 65.7% Share of of total Group 34.3% Share of of total Group Revenue Revenue 10
Slide 11: FY2023 Revenue: Growth by Business Division
FY2023 Revenue: Growth by Business Division Vs.FYÕ22 Manufacturing FOOD &Distribution 52.8% of Group revenue +8.4% +1.8% Catering 7.8% of Group revenue -29.4% +6.3% Services 5.2% of Group revenue +6.7% NON-FOOD FMCG & +16% Healthcare 31.9% of Group revenue +17.1% Industrials 2.4% of Group revenue +2
Slide 12: FY2023 Revenue: Contribution and Growth by Country
FY2023 Revenue: Contribution and Growth by Country Top-line Contribution Vs.FYÕ22 Kuwait UAE Qatar Jordan KSA Iraq 72.1% 13.0% 7.1% 3.9% 2.8% 1.1% +9.8% +1.0% -16.2% +16.6% +2.1% +6.9% 12
Slide 13: FY2023 P&L
FY2023 P&L KD Millions Q4Õ23 Q4Õ22 % Diff FYÕ23 FYÕ22 % Diff Revenue 65.6 60.6 8.2% 271.2 255.2 6.3% Gross Margin 17.5 14.0 24.9% 61.5 51.1 20.4% GM % 26.7% 23.1% 22.7% 20.0% SG&A / Other -12.0 -8.7 38.4% -42.6 -49.6 -14.1% Operating ProÞt 5.5 5.4 3.2% 18.9 1.5 1137.1% Other -1.7 -0.7 130.5% -5.8 -3.1
Slide 14: FY2023 Cashflow
FY2023 Cashflow KD Millions 2023 2022 Diff Operating Cashßow Before WC Changes 29.49 21.04 8.45 Working Capital / Other -6.38 -9.63 3.25 Cash on hand as of December 2023 Operating Cashßow 23.11 11.41 11.70 increased by KWD 11.3 mn mainly driven by: Capital / Other -6.38 -10.30 3.91 - High operating c
Slide 15: Balance Sheet as of Dec 31, 2023
Balance Sheet as of Dec 31, 2023 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 64.2 36.6% 281.2 120.0 119.5 272.1 117.7 59.1 33.1% 267.5 53.5 53.0 31.3% 30.6% 111.4 252.9 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021
Slide 16: A note on debt levels (as of December 2023)
A note on debt levels (as of 31 December 2023) KD Millions Net Debt stood at KWD 59.1mn Down by KWD 5.11mn from December 2022 levels. FY Net Debt / EBITDA ≈ 2.1x down by 3.4x vs FY 2022 12.2 5.5 4.3 4.1 3.9 3.0 2.1 2.1 2.3 2.4 2.2 2.1 1.9 53.5 49.5 51.0 53.4 53.0 58.2 67.7 65.1 64.2 56.0 67.6 63.6 5
Slide 17: Q&A
Q&A 17
Slide 18: Investor Relations Contact
Investor Relations Contact Omar Fouda Investor Relations Manager omar.fouda@mezzan.com 18
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