EGYPT – Edita Food Industries S.A.E., a leading player in Egypt’s packaged snack food market, has posted remarkable growth across key financial metrics for the first quarter ended March 31, 2024.

Founded in 1996 and headquartered in Egypt, Edita Foods manufactures, markets and distributes a range of branded baked snack products including packaged cakes, bakery, rusks (baked wheat), wafers and biscuits as well as selected confectionary/candy products.

Listed on the Egyptian Exchange & EFID.L on the London Stock Exchange, the impressive results highlight its resilience and strategic prowess in a challenging economic environment.

Edita’s revenue surged by 41.3% year-on-year (y-o-y) to EGP 3,927.5 million (US$84M) in Q1 2024.

This impressive growth was driven by effective pricing strategies and strong sales volumes across all product segments.

The company’s gross profit also increased by 36.6% y-o-y, reaching EGP 1,201.6 million (US$26M), despite rising raw material costs.

The gross profit margin stood at 30.6%, slightly down from 31.6% in the same period last year due to higher costs of goods sold (COGS), which rose by 44.1% to EGP 2,333.4 million (US$50M).

Edita’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 27.6% y-o-y to EGP 673.1 million (US$14.4M), although the EBITDA margin decreased to 17.1% from 19.0% in Q1 2023.

Net profit increased by 16.2% y-o-y to EGP 436.4 million (US$9.4), with a net profit margin of 11.1%, down from 13.5% last year.

Segment Performance

Edita’s core segments all posted strong performances.

The cakes segment saw revenues climb by 33.1% y-o-y to EGP 2,012.5 million (US$43M) driven by a 29.4% increase in the average price per pack and a 2.8% rise in packs sold.

The bakery segment followed suit with revenues increasing by 37.8% y-o-y to EGP 1,057.7 million (US$23M), bolstered by a 30.6% rise in the average price per pack and a 5.5% increase in packs sold.

The wafers segment performed exceptionally well, with revenues soaring by 70.3% y-o-y to EGP 492.9 million (US$10.6M), propelled by a 44.6% increase in packs sold and a 17.8% rise in the average price per pack.

According to the company, the candy segment demonstrated outstanding growth, with revenues jumping by 121.8% y-o-y to EGP 136.7 million (US$2.9M), supported by a 69.5% increase in packs sold and a 30.8% rise in the average price per pack.

Meanwhile, the biscuits segment saw its revenues triple EGP 39.4 million (US$844,633), driven by a 157.2% increase in packs sold and a 61.2% rise in the average price per pack.

In May 2023, in line with its strategy, the company ventured into Egypt’s untapped frozen food segment by acquiring ‘Fancy Foods under the Molto Forni brand, generating EGP 22.9 million (US$490,916) in Q1 2024.

Operational and Strategic Developments

In line with its growth strategy, Edita made several key operational advancements. The company expanded its distribution fleet and sales force, adding 150 vehicles and 230 new employees in Q1 2024.

It also secured a long-term loan agreement with Banque Misr, obtaining EGP 990 million (US$21M) over eight years to fund production line expansions, including a new bakery line expected to be operational by Q3 2024.

Edita’s subsidiary, Edita Trade and Distribution, partnered with Fawry, Egypt’s leading e-payment service provider, to enhance cashless transactions and improve operational efficiency.

Edita’s strong first-quarter performance underscores its ability to navigate economic challenges through strategic pricing, product diversification, and operational efficiency.

The company remains committed to innovation and expanding its market presence both locally and internationally, positioning itself for sustained growth in the competitive snack food industry.

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