Kuwait-based Mezzan Holding reported that its third quarter revenue stood at KD47.7 million ($157.30 million), bringing the total revenue for the first three quarters of the year to KD156.2 million ($515.9 million), an increase of 3.6 per cent over the same period last year.

Mezzan Holding is a top manufacturer and distributor of food, beverage, fast moving consumer goods (FMCG), and pharmaceutical products in the Gulf.

Underlying net profit for Q3 was KD3.1 million, representing a 3.5 per cent increase from the same period last year. As a result of a strong quarter, the company was able to counter the decline in catering revenues that was seen earlier in the year.

Mezzan Holding’s year-to-date underlying net profit stood at KD13.5 million ($44.5 million), representing a subtle decline of -0.7 per cent from the same period last year.

The company’s overall performance in Q3 comes in line with management expectations given prevailing challenging macro-economic environment in some of the markets in which the company operates, said a statement from Mezzan Holding.

Financial results for the nine-month period ended September 30, were supported by growth in revenues of food manufacturing and distribution segment by 7.3 per cent on the back of increased production and new business, it said.

Profitability was supported by food manufacturing and distribution and non-food fast moving consumer goods groups which compensated for pressure from the catering business, it added.

The company’s profitability for the quarter was also impacted by expected operational losses from newly acquired Al Safi Foods (now rebranded to Mezzan Foods KSA). The strategic acquisition in Saudi Arabia was executed in Q3’16 and is currently undergoing a successful turn-around involving various business optimisation initiatives and the introduction of new SKUs into the Saudi market, said a statement.
 
Mezzan Holding CEO Garry Walsh, said: “Our year-to-date performance is in line with our previously announced outlook with the exception of the expected impact on our bottom-line by Mezzan Foods KSA, which is undergoing a turnaround plan and performing above expectations.”

“Our market outlook for the next four quarters is conservative given the predominant market dynamics, however being a consumer company with 80 per cent of our portfolio comprises consumer and household staples we are well positioned to continue our healthy performance in this resilient and defensive sector,” he added. – TradeArabia News Service