The stake of Egyptian businessman Safwan Thabet in Juhayna Food Industries has gained $44.42 million (EGP697.57 million) in 45 days on the back of a surge in the share price of the food and beverage company on the Egyptian Stock Exchange.
As of press time, 1:40 PM (UTC), July 16, shares in the Egypt-based company were trading at $0.3528 (EGP5.54) per share, or seven-percent lower than its opening price for the year.
Juhayna’s shares have been on the rise since June 1, as bargain hunters acquire shares following a sell-off lasting from February through May. This saw its shares lose nearly half their value after the detention of Thabet’s son, Seifeldin Thabet, spiked a bearish sentiment. Media reported that Seifeldin was detained on allegations of terrorism financing.
Juhayna Food Industries is a leading company specializing in producing, processing and packaging dairy, juice and cooking products.
The company operates in five business segments in the food-processing industry and agro-allied segment, including milk, chilled products, juices, concentrates and agriculture.
Its impressive financial performance in 2020 led bargain hunters and value investors to acquire shares, leading to a 36-percent surge in its share price in 45 days.
The food manufacturer revealed in its 2020 financial report that despite a marginal 100-basis-point increase in net revenue, it recorded 34-percent growth in net profits to $28 million (EGP440 million) on the back of a 3.2-percentage increase in gross profit margins. It attributed this gain to efficient cost control and the appreciation of its local currency.
Thabet owns a majority stake of 50.07 percent in the company through Pharon Investments Limited.
Research conducted by Billionaires Africa revealed that his stake has increased by $44.42 million (EGP697.57 million) in 45 days.
Between June 1 and July 16, the market value of his shares has increased from $121.85 million (N1.91 billion) to $166.26 million (N2.61 billion).