M.Z. Oweiss and Sons is a good distributor with clients across the Levant, the Middle East, and Africa. They were founded in 1972, and have been operating continuously since then. They aim to provide long-lasting, sustainable, and culturally respectful solutions for their clientele. Their previous accolades include being the sole distributor of German Democratic Republic Consumer Goods Export to MENA markets during the 80s and 90s.
To create a long lasting, sustainable, profitable business by providing solutions – not products – that fit culturally and capture the hearts of consumers in the Middle East, Africa and the Levant
M.Z. Oweiss and Sons was incorporated in 1972 by Mohamed Z Oweiss as an export business focusing on the Middle East and North Africa. We established famous household brands such as Brooke Bond Tea, Rowntree Mackintosh Quality Street and Kit Kat in some Middle East and North African markets. Our experience in trading goes back to the 1960’s with Lewis & Peat, (later Guinness Peat), when we were buyers for the Egyptian Government and African markets for Soft Commodities. Today our company trades with a wide but focused portfolio exclusively from Manufacturers (as opposed to parallel markets), covering the region.
As a leading global exporter, we offer value added flexibility with warehousing facilities in the UK, other Hub countries in Europe and in the Middle East; this allows us and the factories to adapt products to our clients’ channel and markets. In 2014 we established local branches in both Saudi Arabia and Bahrain, further cementing our operations in the Middle East. Our services range from manufacture, to forwarding and customs assistance, to distribution partnerships, and even wholesale and retail.
Our company is the official go to market distributor for Cadbury Biscuits, Burton’s Biscuits, Nestle USA and several Mondelez lines (Oreo & Fonzie’s). We also have other core and non-core distribution for several other brands as mentioned in our presentation. MZOUK has and is continuing to achieve exponential successes in distribution based on a business model which we have developed from 45 years of presence and experience in the markets of the Middle East.
Credit commentary:
The directors Mohamed Oweiss and Yehia Oweiss are providing a personal guarantee, which means should the business fail and have insufficient assets within the business to repay the loan, we can look to the guarantor(s) to repay any shortfall on repayment. There have been no CCJs for the business or director. Our assessment of risk is that there have been no CCJs for the business or director. The Equifax score and grade, which we use to assess risk, are based on the 2022 accounts. Despite a decrease in turnover by 11% from 2022 to 2023, the company has displayed a stable financial position. Their total EBITDA for 2023 was £557k, covering the interest, existing debt payments, and the proposed facility. Additionally, the consistent and positive cash flow is indicated by bank statements, with a balance of £33k at the end of April. There is a significant increase in TNW from £1.67M in 2022 to an even stronger position in 2023, highlighting the company’s asset backing. The financial risk seems moderate, with a DSC ratio of 8.08 and a net gearing of 12%. The reduction in net cash from financing activities, from £724k in 2022 to £244k in 2023, indicates a more conservative approach to financing. Investec Asset Finance and Funding Circle’s existing debts are manageable within the company’s financial framework. Overall, the combination of healthy EBITDA, positive cash flow, strengthened TNW, and moderate financial risk indicates a favourable credit position for the company.
Inflation Risk
As the majority of lending to the business is at a fixed rate, they will not be immediately affected by interest rate increases.
Loan
