Mezzan Holding Company Kscc · KSE:MEZZAN
Mezzan Holding Company Kscc — Mezzan Holding Company — Q2 2023 Earnings Presentation
17 slides from Mezzan Holding Company Kscc's earnings presentation, Aug 7, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 Earnings Presentation August 7, 2023 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 Q2 2023 Highlights Results Financial Review Q&A 3
Slide 4: Mezzan Today: Tailwinds
Mezzan Today: Tailwinds ➜ ➜ ➜ New product launches driving margin recovery. ➜ Tight management of costs. ➜ Exiting government catering contracts to focus on more lucrative opportunities that generate higher returns. ➜ ➜ ➜➜ ➜ ➜ 4
Slide 5: Mezzan Today: Headwinds
➜ ➜ Mezzan Today: Headwinds ➜➜ Persistent inflation resulting in numerous challenges. ➜ Staff turnover causing several negative impacts on Mezzan's operations, performance, and overall success. Stock holding. ➜ Higher interest rate costs. ➜ ➜ ➜ ➜ ➜ 5
Slide 6: Mezzan Today: Earnings Highlights
Mezzan Today: Earnings Highlights KD Millions Q2 EBITDA (2020-2023) KD Millions Q2’23 Q2’22 % Diff H1’23 H1’22 % Diff Revenue 61.4 61.5 -0.1% 140.4 134.0 +4.8% 7.2 EBITDA 5.6 2.1 +170% 13.9 8.3 +67.7% 5.7 5.6 Net Income 2.0 -1.0 +293% 6.6 2.0 +224% Net Pro t 1.7 -1.1 5.9 1.9 +215% Attributable to Eq
Slide 7: Mezzan Today: Q2 Historical Performance
Mezzan Today: Q2 Historical Performance KD Millions Q2 Revenue Q2 Gross Profit Q2 Net Profit 15.3 61.5 61.4 3.5 59.9 60.7 13.3 13.1 11.1 2.3 1.7 -1.1 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 7
Slide 8: Financial Review
Financial Review 8
Slide 9: H1'23 Revenue: Contribution by Business Line
H1’23 Revenue: Contribution by Business Line FOOD REVENUE +2.2% NON-FOOD REVENUE 9.7% Vs.H1’22 Vs.H1’22 64.5% Share of of total Group 35.5% Share of of total Group Revenue Revenue 9
Slide 10: H1'23 Revenue: Growth by Business Division
H1’23 Revenue: Growth by Business Division Vs.H1’22 Manufacturing FOOD &Distribution 52.6% of Group revenue +6.6% +2.2% Catering 7.2% of Group revenue -23.4% +4.8% Services 4.7% of Group revenue +8.2% NON-FOOD FMCG & +9.7% Healthcare 33.2% of Group revenue +10.3% Industrials 2.3% of Group revenue +2
Slide 11: H1'23 Revenue: Contribution and Growth by Country
H1’23 Revenue: Contribution and Growth by Country Top-line Contribution Vs.H1’22 Kuwait UAE Qatar Jordan KSA Iraq 73.6% 12.1% 7.2% 3.5% 2.7% 1% +6% -4.6% +7.2% +18.3% -1.9% +3.1% 11
Slide 12: H1'23: P&L
H1'23: P&L KD Millions Q2’23 Q2’22 % Di H1'23 H1’22 % Di Revenue 61.4 61.5 -0.1% 140.0 134.0 4.8% Gross Margin 13.1 11.1 18.5% 29.6 25.6 15.4% GM % 21.3% 18.0% 3.4% 21.1% 19.1% 1.9% SG&A / Other -9.7 -11.3 -14.4% -20.0 -22.0 -9.0% Operating Pro t 3.4 -0.3 9.5 3.6 163.6% Other -1.3 -0.7 -76.1% -2.7 -
Slide 13: Q2'23: Cashflow
Q2'23: CASHFLOW KD Millions 2023 2022 Di Operating Cash ow before WC changes 14.6 12.1 2.5 Working Capital / Other -7.0 -9.8 2.8 In 2023 ,Increase in cash & cash equivalents by KWD 6.6 mn mainly Operating Cash ow 7.6 2.3 5.3 driven by increase in cash generated from operations and lower capital Capi
Slide 14: Balance Sheet as of June 30, 2023
Balance Sheet as of June 30, 2023 KD Millions Total Assets Equity Net Debt Net Debt to Capitalization KD Millions KD Millions KD Millions % 120.3 37.2% 37.3% 119.1 67.7 67.6 114.9 32.6% 271.5 113.8 57.6 29.8% 268.5 51.0 267.7 256.7 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 2020 202
Slide 15: A note on debt levels
A note on debt levels KD Millions As of 30 June 2023: Net Debt stood at KWD 67.6mn, down by KWD 11.6mn from March 2023 levels, and lower by KWD 0.1mn from Q2 2022 - LTM Net Debt / EBITDA of 3.9x down by 0.4x vs Q2 2022 12.2 5.5 4.3 4.1 3.9 2.7 3.0 2.6 2.3 2.4 2.1 1.9 2.1 57.6 56.7 53.5 49.5 51.0 53.
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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