Table of Contents
Edita Food Industries, a prominent Cairo-based consumer goods conglomerate led by Egyptian businessman Hani Berzi, has announced a remarkable financial performance for the first nine months of 2023 (9M 2023).
The company’s profit under Berzi surged well beyond expectations, reaching over $40 million, driven by a significant increase in demand for household consumer goods in the Egyptian market.
According to the recently published financial results, Edita’s profit witnessed an impressive 87-percent increase, soaring from EGP673.77 billion ($21.8 million) in 9M 2022 to EGP1.26 billion ($40.77 million) in 9M 2023.
This surge in profit is attributed to the ongoing stabilization of the Egyptian economy, which has led to heightened demand for Edita’s wide range of branded snack products. Edita’s revenue during this period also exhibited substantial growth, rising by 70.2 percent from EGP5.14 billion ($166.3 million) in 9M 2022 to EGP8.75 billion ($283.15 million) in 9M 2023.
Edita’s total assets soar to $230 million
Edita Food Industries is a dominant player in Egypt’s expanding packaged snack food market, manufacturing and distributing various snack products, including packaged cakes, croissants, rusks, and wafers, through an extensive retail network.
Berzi, the founder of Edita and its current chairman and managing director, maintains a substantial 41.95-percent stake in the company through Quantum Invest BV. This stake, which is worth more than $250 million, cements his position as one of Egypt’s wealthiest individuals.
The company’s basic and diluted earnings per share (EPS) also witnessed a significant increase, reaching EGP1.69 ($0.0547) in January-September 2023, compared to EGP0.94 ($0.0304) in the same period of 2022. Edita’s total assets grew from EGP5.78 billion ($187 million) as of December 31, 2022, to EGP7.11 billion ($230 million) as of September 30, 2023.
Edita strengthens expansion plans with $45 million loan from IFC
In alignment with Edita’s expansion strategy, the board has approved an increase in the issued capital of its subsidiary, raising it to EGP600 million ($19.4 million) from EGP200 million ($6.5 million). Additionally, in October, the company finalized a finance agreement with the International Finance Corporation (IFC), securing a long-term loan of $45 million.
This $45-million agreement, spanning eight years, will serve a dual purpose for Edita, bolstering the company’s working capital requirements and fueling capital expenditure initiatives in Egypt and Morocco. Edita’s impressive financial performance in 9M 2023, combined with its strategic expansion plans, indicates a promising future for this Egyptian consumer goods giant.
