MIRA INFORM REPORT

 

 

Report Date :

29.05.2014

 

IDENTIFICATION DETAILS

 

Name :

KUWAIT FOOD COMPANY SAK (AMERICANA)

 

 

Registered Office :

Plot No. 198A, Street No. 71, Canada Dry Street, Shuwaikh Industrial Area No. 3, P O Box 5087, Safat 13051

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

23.02.1964

 

 

Com. Reg. No.:

4369

 

 

Legal Form :

Kuwaiti Joint Stock Company

 

 

Line of Business :

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

·         Americana Trading Division

Manufacturing Division

Restaurants Division

 

 

No of Employees :

1,500 (Approximately)

 

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 :

Regular

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Kuwait

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

Kuwait ECONOMIC OVERVIEW

 

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 billion barrels - more than 6% 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. Budget surpluses have stayed around 30% of GDP, which has led to higher budget expenditures, particularly wage hikes for many public sector employees, as well as increased allotments to Kuwait’s Future Generations Fund. 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 historically 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, though much of these funds have yet to be allocated.

 

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 No. 71

Street               : Canada Dry Street

Area                 : Shuwaikh Industrial Area No. 3

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 Kharafi                                                   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

 

·       Faisal Nasser Al Kharafi                                                                    Director

 

·       Faisal Nezar Ahmed Al Nesf                                                              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 Kharafi                                    -

 

·       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                       99.92%

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                                                                                99.97%

Egypt

 

·       International for Food Industry Co                                                        99.59%

Egypt

 

·       Americana for Land Reclamation Cultivation Co                                    99.49%

Egypt

 

·       Al Musharaka Company for Touristic Restaurant Services                     90.00%

Iraq

 

 

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     2013

 

Number of outlets                  169       376       543       769       1,301    1,462

Number of chains                  8          11         13         17         21         23

Number of countries              8          9          11         13         13         13

Number of cities                    17         32         54         66         91        100

Number of meals (million)       16         35         55         98         195       230

 

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                                                                                     31/12/13            31/12/12

 

Assets

Non-current assets

Property, plant and equipment                                                                 220,301             230,569

Investment properties                                                                             17,021              -

Intangible assets                                                                                    12,949              11,735

Available for sale investments                                                                  96,826              114,136

Other assets                                                                                         2,385                2,355

349,482             358,795

Current assets

Inventories                                                                                             104,957             99,092

Trade receivables                                                                                   56,474              53,780

Other receivables                                                                                   40,800              39,043

Cash and cash equivalents                                                                     94,382              52,270

296,613             244,185

Total assets                                                                                          646,095             602,980

Equity and liabilities

Equity attributable to shareholders of the Company

Share capital                                                                                         40,200              40,200

Share premium                                                                                      25,687              25,687

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

Statutory reserve                                                                                    20,100              20,100

Voluntary reserve                                                                                   3,010                3,010

Foreign currency translation reserve                                                         (32,819)            (24,786)

Change in fair value reserve                                                                    (1,335)              (6,383)

Retained earnings                                                                                  281,780             256,607

335,543             313,355

Non-controlling interests                                                                         40,799              37,528

Total equity                                                                                           376,342             350,883

Non-current liabilities

Borrowings and bank facilities                                                                 25,904              29,164

End of service indemnity                                                                         33,429              30,690

59,333              59,854

Current liabilities

Borrowings and bank facilities                                                                 56,723              61,673

Trade and other payables                                                                        153,697             130,570

210,420             192,243

Total liabilities                                                                                        269,753             252,097

Total equity and liabilities                                                                        646,095             602,980

 

Income Statement

 

Sales                                                                                                    866,904             809,639

Cost of sales                                                                                         (704,770)           (662,906)

Gross profit                                                                                           162,134             146,733

Selling and marketing expenses                                                              (70,622)            (65,224)

General and administrative expenses                                                      (6,001)              (5,904)

Other operating expenses                                                                       (1,342)              (764)

Investment properties income                                                                  6,731                -

losses from available for sale investments                                                (16,290)            (6,763)

Finance costs                                                                                        (8,479)              (9,509)

Profit before income tax of subsidiaries                                                    66,131              58,569

Income tax of subsidiaries                                                                      (6,025)              (6,528)

Profit before other deductions                                                                  60,106              52,041

Contribution to Kuwait Foundation for Advancement of Science                  (489)                 (476)

National Labour Support Tax                                                                   (856)                 (1,065)

Zakat                                                                                                    (353)                 (464)

Board of Directors’ remuneration                                                  (72)                   (72)

Net profit for the year                                                                              58,336              49,964

 

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.

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.08

UK Pound

1

Rs.99.20

Euro

1

Rs.80.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.