Mezzan Holding, a leading manufacturer and distributor of food, beverage, FMCG, and pharmaceutical products in the Gulf, has seen its first-quarter net profit to parent company shareholders soar 45.1% to KD4.3 million ($14.03 million).

 

The company’s revenue increased 8.9% to KD79 million while its operating profit shot up 57.6% to KD6.1 million. EBITDA grew 33.8% to KD8.3 million, up 33.8%

 

Mezzan Holding Vice Chairman, Mohammad Jassim Al Wazzan, said: “Financial performance improved this quarter, which is a testament to the hard work and dedication of our entire team across all geographies. Mezzan’s success in adapting to the evolving market conditions has contributed significantly to our success last quarter. We are proud of the achievements and remain committed to creating long-term value for our customers, shareholders, and employees.”

 

Road to recovery

Mezzan Holding CEO, Garrett Walsh, said: “The company’s Q1 earnings reflect stronger results in both our Food and Non-Food business lines despite the challenging market conditions. Mezzan’s metrics are clearly on the road to recovery. The team’s success in identifying growth opportunities in parallel to implementing robust cost controls were instrumental in improving Mezzan’s efficiency in the quarter.”

 

Food Business Line

Total Revenue for the Food Business Line reached KD49 million, an increase of 7% compared with Q1 2022. The Food Business Line accounted for 62% of Group Revenue. The Business Line comprises the following three divisions:  Manufacturing and Distribution (generating 51% of Group Revenue), Catering (generating 7% of Group Revenue), and Services (generating 4% of Group Revenue).

 

● Manufacturing and Distribution: revenue increased by 11.2%.

● Catering: revenue decreased by 19.1%.

● Services: revenue increased by 15.2%.

 

Non-Food Business Line

Revenue reached KD30 million, an increase of 12.2% compared with Q1 2022. The Non-Food Business Line accounted for 38% of Group Revenue. The Business Lines comprises the following divisions: FMCG and Pharmaceuticals business division (generating 35% of Group Revenue) and Industrials (generating 2% of Group Revenue).

● FMCG and Pharmaceuticals: revenue increased by 11.4%.

● Industrials: revenue increased by 25.2%.

 

Regional Business Highlights:

●Kuwait: Revenue increased by 9.4%. This growth is attributed to increased sales of FMCG and Pharmaceuticals as well as Food Manufacturing and Distribution.

●UAE: Revenue slightly declined by 0.5%.

●Qatar: Revenue increased by 16.3% as food distribution witnessed an improvement in the country.

●KSA: Revenue increased by 3.7%. 

●Jordan: Revenue increased by 25.1% driven by the food services division and food distribution division.

●Iraq: Revenue increased by 19%.-- TradeArabia News Service