Mezzan Holding, one of the largest manufacturers and distributors of food, beverage, FMCG and healthcare in the Gulf, reported a revenue of KD134.3 million ($439.02 million) for the first half of 2020, up 16% compared to the same period last year.
The net profit is KD9 million ($29.42 million), up 24% and net profit attributable to parent company shareholders is KD8.1 million, up 11%. EBITDA was KD15.8 million, up 23%.
Mezzan managed to achieve healthy revenue growth driven by both food and non-food segment activity, from organic and inorganic activities, a statement said.
The group's strong revenue growth was also accompanied by enhancing profitability margins such as gross profit margin, EBITDA margin and net income margin. These were achieved due to higher volumes, economies of scale, and operating leverage, it said.
Profits in H1’20 increased on the back of increased scale of operations, economies of scale and hence increasing profit margins as well as impact of operating leverage.
“It is key to note that Covid-19 resulted in both opportunities as well as challenges to various operations within the group. Operations in Kuwait witnessed growth driven by inorganic as well as organic activities as well as opportunities. However, there were declines in UAE operations as a result of soft demand from the Food Service Segment as well as in Qatar given timed interruption of operations. Finally, during H1’20, the group incurred Covid related expenses of expenses of approximately KD600,000,” the statement said.
Mezzan’s Executive Vice Chairman stated: “Covid-19 presented great opportunities and challenges for companies operating in various sectors, and being one that operates in a defensive segment, Mezzan succeeded in balancing the opportunities to overcome the challenges we faced recently.”
He added: "I would like to thank Mezzan’s employees and workers as well as various regulatory authorities who enabled us to work around the clock to provide food and medicine with limited interruption under the current circumstances."
Garett Walsh, CEO of Mezzan Holding, added: “We are happy to see our organic and inorganic growth initiatives yield positive results, on both topline and profitability. The growth in core segments of Food and Healthcare are a testament to both the defensive nature of our operations as well as the growth initiatives we have taken recently. Finally, I echo our vice chairman’s gratitude to authorities and employees who worked 24/7 to provide consumers with necessities throughout this time.” – TradeArabia News Service