Egypt-based consumer goods group Edita Food Industries has reported a 58-percent growth in profit in the first nine months of its 2021 fiscal year, which ended on Sept. 30.
The strong growth in earnings came off the back of a double-digit growth in revenue due to an increase in volumes sold and improved pricing thanks to the group’s optimized and well-diversified portfolio.
During the nine-month period, the Egypt-based consumer packaged goods group posted a 33-percent surge in revenue from EGP2.79 billion ($177.6 million) in the nine-month period of 2020 (9M 2020) to EGP3.71 billion ($236.1 million) in the corresponding period of 2021.
The strong top-line growth led Edita to post a 58-percent growth in profit from EGP175 million ($11.14 million) in 2020 to EGP276.2 million ($17.6 million) in 2021, despite the effects of global commodity price inflation, which have seen commodity prices reach multiyear highs.
Edita Food Industries is a leader in the Egyptian packaged snack foods market. The group was established by the Berzi family and Exoder Limited in 1996.
In addition to its core operations under powerful brands such as Molto, Todo, Bake Rolz, Bake Stix, Freska and MiMix, Edita maintains an ownership interest in international brands like Twinkies, HoHos and Tiger Tail in Egypt, Libya, Jordan and Palestine.
Hani Berzi, who is the chairman and managing director, holds a substantial 41.95-percent stake in Edita Food industries through Quantum Invest BV.
In his statement to shareholders and equity market observers, Berzi said Edita’s volumes continued to exceed pre-COVID-19 levels, with the results reflecting a steady improvement in market conditions and the success of the group’s portfolio optimization and investment strategies.
He further noted that these strategies allowed Edita to efficiently meet consumer demand and capture market share during the year under review.
In this vein, the group’s financial performance in 2021 is expected to remain elevated as its new overseas production facility in Morocco will strengthen its brand presence in the local market.
This is expected to drive the group’s growth both nationally and across the region.
As of press time, Nov. 3, shares in Edita were trading at EGP7.32 ($0.4659) per share, 153-basis points higher than its opening price this morning.
At the current price valuation, the market value of Berzi’s stake in the group is valued at EGP2.22 billion ($141.4 million), making him one of the richest investors on the Egyptian Stock Exchange.