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Mezzan Holding reports $716m revenue for 2019

KUWAIT, April 9, 2020

Mezzan Holding, one of the largest manufacturers and distributors of food, beverage, FMCG and pharmaceutical products in the Gulf,  announced a revenue of KD222.5 million ($716.35 million) for the financial year 2019, up 7.2% over the previous year.
  
The operating profit was KD12.6 million, up 20.3%; EBITDA was KD18.5 million (up 18.5%) and net profit KD6.3 million, down 5%.
 
The net profit to parent company shareholders was KD5.6 million, down 19%.
 
Mezzan recorded healthy revenue growth driven by its fast-moving consumer goods and healthcare sector, as well as the food services sector, and food manufacturing and distribution, the company said.
 
The group's revenue increase was also accompanied by enhancement of Gross Profit, Operating Profit, as well as Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA). 
 
Despite the improvement in operational results, net profit were affected by a number of non-cash and non-recurring losses, namely, a non-cash loss due to the reduction in value of goodwill of KD1.2 million and another KD1.2 million non-cash loss due to reduction of value of other intangible assets derived from the accounting re-classification of a property given application of IFRS 16 in 2019 and IAS 38, the company said.
 
During 2019, the group recorded non-cash and non-recurring losses for an aggregate value of KD2.4 million. These relate to impairment of goodwill in an investment in a subsidiary in Saudi Arabia for approximately KD1.2 million and an impairment of other intangible assets driven by reclassification of a property resulting from the application of IFRS 16 (which started in 2019) and IAS38, it said. 
 
Excluding these non-cash losses, net profit would have reached KD8.6 million and net profit attributable to equity holders of the parent company would have reached KD7.9 million or up by 12% and 14.4% from restated 2018 results.
 
Mezzan Holding Executive Vice Chairman Mohammad Jassim Al Wazzan said: “2019 witnessed the achievement of a long-term transformational goal for our healthcare business, to include production of pharmaceutical products, through an acquisition. Expand the scale and scope of our healthcare practice. Mezzan was also successful in enhancing its revenue and operational profits but net profit was reduced due to non-cash non-recurring losses (impairment of intangible assets).” 
 
Garett Walsh, CEO of Mezzan Holding, added: “We are still focused on restoring performance in our operations. We have taken many measures to increase top line and enhance operational efficiency, and have started seeing the operational results improve, but there is more to achieve from our asset base in the near future. We have put new plans to enhance results in our operations in KSA.” – TradeArabia News Service
 



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