MIRA INFORM REPORT

 

 

Report Date :

08.12.2012

 

IDENTIFICATION DETAILS

 

Name :

KUWAIT FOOD COMPANY SAK (AMERICANA)

 

 

Registered Office :

Plot No. 198A, Canada Dry Street, Shuwaikh Industrial Area, P O Box 5087, Safat 13051

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

23.02.1964

 

 

Com. Reg. No.:

4369

 

 

Legal Form :

Kuwaiti Joint Stock Company

 

 

Line of Business :

Subject operates through several divisions :-

l      Americana Trading Division

l      Manufacturing Division

l      Restaurants Division

 

 

No. of Employees :

1500 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

 

 

 

 

Payment Behaviour :

No Complaints

 

 

 

 

 

 

Litigation :

Clear 

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Kuwait

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Kuwait - ECONOMIC OVERVIEW

 

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 104 billion barrels - about 7% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income. Kuwaiti officials have committed to increasing oil production to 4 million barrels per day by 2020. The rise in global oil prices throughout 2011 is reviving government consumption and economic growth. Kuwait has experienced a 20% increase in government budget revenue, which has led to higher budget expenditures, particularly wage hikes for many public sector employees. Kuwait has done little to diversify its economy, in part, because of this positive fiscal situation, and, in part, due to the poor business climate and the acrimonious relationship between the National Assembly and the executive branch, which has stymied most movement on economic reforms. In 2010, Kuwait passed an economic development plan that pledges to spend up to $130 billion over five years to diversify the economy away from oil, attract more investment, and boost private sector participation in the economy.

 

 

Source : CIA

 


SUMMARY

 

Company Name                                     : KUWAIT FOOD COMPANY SAK (AMERICANA)

Country of Origin                                    : Kuwait

Legal Form                                            : Kuwaiti Joint Stock Company

Registration Date                                   : 23rd February 1964

Commercial Registration Number            : 4369

Chamber Membership Number                : 1743

Issued Capital                                        : KD 40,200,207

Paid up Capital                                      : KD 40,200,207

Total Workforce                                     : 1,500

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

COMPANY NAME

 

KUWAIT FOOD COMPANY SAK (AMERICANA)

 

 

company ADDRESS

 

Registered & Physical Address

Location            : Plot No. 198A

Street               : Canada Dry Street

Area                 : Shuwaikh Industrial Area

PO Box             : 5087

Town                 : Safat 13051

Country             : Kuwait

Telephone         : (965) 24815900 / 24735476 / 24749543 / 24347938

Facsimile          : (965) 24815914 / 24338464 / 24846925 / 24340032

Email                : info@americana-group.com

 

Premises

Subject operates from a large suite of offices, a processing plant and warehousing facilities that are owned and located in the Industrial Area of Safat.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Marzouq Naser Mohamed Al Khorafi                                                   Chairman

·       Bader Mohamed Abdul Wahab Al Jouan                                              Vice Chairman

·       Abdullah Mohamed Al Saad                                                               Director

·       Sheikh Abdullah Salem Al Sabah                                                       Director

·       Mohanad Mohamed Abdul Mohsen Al Khorafi                          Director

·       Mohamed Abdul Aziz Al Sudairawi                                                     Director

·       Faisal Nasser Al Kharafi                                                                    Director

·       Al Moataz Adel Al Alfi                                                                        Chief Executive

·       Amgad Al Mofti                                                                                 President

·       Sayed Deyab                                                                                    Finance Manager

·       Borhan El Kilany                                                                               Marketing Manager

·       Mohamed Farouk Hafeez                                                                   Human Resources Manager

·       Saeed Nayel                                                                                     Meat Division Manager

·       Abdel Rahman Al Zayat                                                                     Cake Division Manager

·       Nabil Abu El Naga                                                                             Distribution Division Manager

 

 


LEGAL FORM & OWNERS

 

Date of Establishment  : 23rd February 1964

 

Legal Form                  : Kuwaiti Joint Stock Company

 

Commercial Reg. No.  : 4369

 

Chamber Member No. : 1743

 

Issued Capital              : KD 40,200,207

 

Paid up Capital            : KD 40,200,207

 

Name of Shareholder (s)                                                       Percentage

·       Al Khair National for Stocks & Real Estate Co                         66.80%

·       Naser Mohamed Abdul Mohsin Al Khorafi                                    -

·       Bader Mohamed Abdul Wahab Al Jouan                                      -

·       Marzouq Naser Al Khorafi                                                          -

·       Abdullah Mohamed Al Saad                                                       -

·       Sheikh Abdullah Salem Al Sabah                                               -

·       Mohanad Mohamed Abdul Mohsen Al Khorafi                  -

·       Loay Jasem Al Khorafi                                                               -

·       Kuwaiti businessmen and private investors                                  -

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Americana Group of companies, which consists of the following concerns:

 

     Name                                                                                      Percentage Held

 

·       Qatar Foodstuff Co                                                                            100%

PO Box: 4548

Doha

Qatar

Tel: (974) 44423102

Fax: (974) 44425982

 

·       Kuwait Food Co (Americana)                                                              100%

PO Box: 6844

Sharjah

United Arab Emirates

Tel: (971-6) 5593614

Fax: (971-6) 5594302

 

·       Gulf Food Industries Co (California Garden)                                          100%

Sheikh Zayed Road

Jebel Ali Free Zone

PO Box: 17100

Dubai

United Arab Emirates

Tel: (971-4) 8815633

Fax: (971-4) 8815544

 

·       Al Ahlia Restaurant Co                                                                      99.96%

PO Box: 8030

Jeddah 21482

     Saudi Arabia

     Tel: (966-2) 6520073

     Fax: (966-2) 6520148

 

·       Bahrain & Kuwait Restaurant Co                                                         40.00%

PO Box: 20464

Manama

     Bahrain

     Tel: (973-17) 262998

     Fax: (973-17) 272883

 

·       Cairo Poultry Co                                                                                51.97%

23 Mourad Street

Giza

Cairo

     Egypt

     Tel: (20-2) 35730859 / 35715905

     Fax: (20-2) 35738548

 

·       Gulf Mineral Water & Processing Industries Co Ltd                              92.37%

PO Box: 929

Ajman

     United Arab Emirates

     Tel: (971-6) 7421800

     Fax: (971-6) 7446394

 

·       Tourist Projects & International Restaurants Co Ltd                              63.60%

PO Box: 950584

Amman 11195

     Jordan

     Tel: (962-6) 5693759

     Fax: (962-6) 5681110

 

·       Arab Gulf Co for Food & Supermarkets                                                99.25%

Fawamiah

     PO Box: 23828

     Safat

     Kuwait

     Tel: (965) 24340048

     Fax: (965) 24338933

 

·       International Fashion Co                                                                    100%

Souk El Souf

     PO Box: 11649

     Jeddah 21463

     Saudi Arabia

     Tel: (966-2) 6613108

 

·       Egyptian Co for International Touristic Projects                                    90.32%

47 El Batal Ahmed Abdelaziz Street

Mohandessin

Cairo

     Egypt

     Tel: (20-2) 33469719

     Fax: (20-2) 33011578

 

·       Kuwait Food Co                                                                                100%

Cairo

     Egypt

 

·       Al Americana International Company (Safeway)                                   89.55%

Kuwait

 

·       Al Ahlia National Food Industries Co                                                   99.96%

Saudi Arabia

 

·       International Cosmetics Co                                                                100%

Saudi Arabia

 

·       United Food Co                                                                                 98.00%

Saudi Arabia

 

·       Americana International Company                                                       97.40%

United Arab Emirates

 

·       International Tourism Restaurants Co                                      99.00%

Oman

 

·       International Touristic Projects Lebanese Co                                        98.00%

Lebanon

 

·       Gulf and Arab World Restaurants Co                                                   94.00%

Bahrain

 

·       The Caspian International Restaurants Co                                           100%

Kazakhstan

 

·       Americana Group for Food and Touristic Projects                                 99.97%

Egypt

 

·       International Co for Agricultural Development                                        61.36%

Egypt

 

·       Al Mohandas National Co                                                                   94.06%

Egypt

 

·       Egyptian Canning Co                                                             99.97%

Egypt

 

·       Americana Egypt for Cold Storage                                                      50.99%

Egypt

 

·       Americana Marketing and Distributing Co                                            98.93%

Egypt

 

·       Greenland Group for Food Industries Co                                              80.48%

Egypt

 

·       International Co for Agriculture Production & Processing                       87.26%

Egypt

 

·       Egyptian Company for Starch and Glucose                                          73.65%

Egypt

 

·       Senyorita Group for Food Industries Co                                               90.37%

Egypt

 

·       Development Agriculture Co                                                               99.97%

Egypt

 

·       Al Hashimya Co                                                                                99.77%

Egypt

 

·       International for Food Industry Co                                                        99.59%

Egypt

 

·       Americana for Land Reclamation Cultivation Co                                    99.49%

Egypt          

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following primary divisions:

 

·       Americana Trading Division

 

The Americana Trading Division was established in 1985 and is responsible for the distribution of consumer products in all GCC countries. It deals mainly in the categories of food, confectionary, and tobacco, including chocolates, tomato products, cheese, non-alcoholic beer, canned food, baby food and juices and kitchenware.


 

·       Manufacturing Division

 

       The manufacturing division specialises in the production and processing of meat, cakes, French fries, and poultry.

 

       Americana Meat plants are producing a wide variety of high quality processed Beef, Mutton and Chicken products, such as, minced products, Burgers, Nuggets, Frankfurters, Mortadellas, Shesh Kababs and Kofta. Americana Meat is an acknowledged market leader for its high quality products in the region and was the first company in the Middle East to be accredited with the prestigious ISO 9001 certification. The strong leadership position enjoyed by Americana Meat is reflected in almost 50% of the market share in the main GCC markets.

 

       Americana set-up its first plant in 1974 for the processing of Cake and other flour-based products in Kuwait. Americana Cake products range includes variety of Pound cakes, Swiss Rolls, Sponge cakes, Chocolate coated rolls, Biscuits, Cookies, Croissants, Rusk and Pastries. Americana cakes hold a dominant market share of around 50 % in the key GCC markets.

 

·       Restaurants Division

 

Under this division subject operates a number of restaurants, cafeterias and burger bars throughout Kuwait including Hardee’s, Chicken Tikka, Kentucky Fried Chicken, Wimpy's, Pizza Hut, Sbarro, Baskin Robbins & TGI Fridays and Grand Café.

 

                                                1991     1996     2001     2006     2011

 

Number of outlets                  169       376       543       769       1,301

Number of chains                  8          11         13         17         21

Number of countries              8          9          11         13         13

Number of cities                    17         32         54         66         91

Number of meals (million)       16         35         55         98         195

 

Import Countries: Europe, the United States of America and the Far East.

 

International Agencies Held:

 

·       Cadbury International             United Kingdom

·       Rupp Cheese                                    Austria

·       Joyco                                               Spain

·       Nordex                                             Denmark

·       Elledi Confectionery                           Italy

·       La Belle Vache Cheese                     France

·       Nakhla Tobacco                                Egypt

·       Americana Tuna                                Thailand

·       Dilmah Tea                                       Sri Lanka

·       Baskin Robbin Candies                      United States of America

·       California Garden                               United States of America

 

Brand Names: AMERICANA

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD 000’s)

 

Balance Sheet                                                                         31/12/11            31/12/10           31/12/09

 

Assets

Non-current assets

Property, plant & equipment                                                        218,297 221,213 233,105

Intangible assets                                                                        11,986              13,750              13,656

Available for sale investments                                                      113,753 184,470 150,107

Other assets                                                                             1,361                1,147                3,615

                                                                                                345,397 420,580 400,483

Current assets

Inventories                                                                                 96,780              81,271              74,498

Trade receivables                                                                       51,038              45,940              43,476

Other debit balances                                                                  36,427              34,234              33,846

Cash and cash equivalents                                                         51,421              43,549              37,448

                                                                                                235,666 204,994 189,268

Total assets                                                                              581,063 625,574 589,751

 

Equity and Liabilities

Share capital                                                                             40,200              40,200              40,200

Treasury shares                                                             (1,080)              (1,080)              (1,080)

Share premium                                                                          25,687              25,687              25,687

Statutory reserve                                                                        20,100              20,100              20,100

Voluntary reserve                                                                       3,010                3,010                3,010

Foreign currency translation reserve                                             (20,812)            (17,833)            (8,512)

Change in fair value reserve                                                         (11,855)            50,879              14,649

Retained earnings                                                                      236,129 212,142 188,997

                                                                                                291,379 333,105 283,051

Non-controlling interest                                                               37,909              42,325              42,168

Total equity                                                                               329,288 375,430 325,219

 

Non-current liabilities

Loans and bank facilities                                                            36,226              49,157              62,671

Provision for end of service indemnity                                           26,725              22,217              18,802

                                                                                                62,951              71,374              81,473

Current liabilities

Loans and bank facilities                                                            68,266              59,217              70,668

Trade payables                                                                          120,558 119,553 112,391

                                                                                                188,824 178,770 183,059

Total equity and liabilities                                                            581,063 625,574 589,751


 

Income Statement

 

Sales                                                                                        720,759 680,729 616,425

Cost of sales                                                                             (594,804)           (560,505)           (511,165)

Gross profit                                                                               125,955 120,224 105,260

Other income                                                                             328                   332                   557

Other operating expenses                                                           (2,464)              (2,918)              (3,497)

Selling and marketing expenses                                                  (56,120)            (55,269)            (46,582)

General and administrative expenses                                           (5,011)              (4,290)              (3,573)

Operating profit                                                                          62,688              58,079              52,165

Finance costs                                                                            (8,468)              (9,262)              (13,174)

Gains / (losses) from available for sale investments                       5,987                11,626              (7,454)

Gain from investment in associates                                             -                       -                       16,844

Gain from sale of subsidiary                                                        -                       -                       2,038

Foreign exchange gains / (losses)                                               632                   449                   (490)

Profit before income tax of subsidiaries                                        60,839              60,892              49,929

Income tax of subsidiaries                                                          (4,478)              (4,916)              (5,560)

Profit before deductions                                                              56,361              55,976              44,369

Contribution to Kuwait Foundation for Advancement                      (454)                 (459)                 (345)

of Science

National labour support tax                                                         (962)                 (985)                 (865)

Zakat                                                                                        (401)                 (448)                 (375)

Board of directors remuneration                                                   (72)                   (72)                   (72)

Net profit for the year                                                                  54,472              54,012              42,712 

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

·       The Gulf Bank KSC

Mubarak Al Kabir Street

PO Box: 3200

Safat 13033

Tel: (965) 22449501

Fax: (965) 22445212

 

·       Burgan Bank

     Shuwaikh

     PO Box: 5389

     Safat 13054

     Tel: (965) 24830433

     Fax: (965) 24830690

 

·       Bank of Kuwait & the Middle East KSC

Abdullah Al Salem Street

Darwaza Abdul Razzak

PO Box: 71

Safat 13001

Tel: (965) 22459771

Fax: (965) 22461430

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Kuwait Food Company SAK (Americana) has been operating for over 45 years and has grown to be a regional leader in the food industry. It comprises 3 main divisions engaged in the distribution of foodstuff and consumer items, a food manufacturing and processing division, and a restaurant division that holds franchise and licensing agreement with several well-known international fast food restaurant chains.

 

Subject’s financial position is reportedly strong with payment obligations met in a generally prompt manner. Local sources are of the opinion that subject would not enter into financial trade commitments it could not see its way clear to fulfil.

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.20

UK Pound

1

Rs.86.99

Euro

1

Rs.70.22

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.