Table of Contents
Key Points:
- Edita Food Industries sees a notable 9.78 percent surge on EGX, elevating its market capitalization to over $440 million.
- Hani Berzi’s stake in Edita Food Industries increases by EGP809.87 million ($17.18 million) over 13 days, enhancing his wealth.
- Caution urged for investors despite Berzi’s stake rise; Edita Food’s year-to-date share price decline highlights currency and market volatility risks.
Egyptian businessman Hani Berzi has experienced a notable increase in the market value of his stake in Edita Food Industries, a leading company in Egypt’s packaged snack food market. This is attributed to the recent uptick in the company’s share price on the Egyptian Exchange.
Data from Billionaires.Africa indicates that Berzi’s stake in Edita Food Industries has surged by EGP809.87 million ($17.18 million) over the past 13 days. This follows a decline of $5.97 million between May 7 and 13, when his stake fell from EGP8.67 billion ($183.33 million) to EGP8.39 billion ($177.37 million).
Edita Food Industries gains 9.78 percent on EGX
Edita Food Industries is a market leader in Egypt’s growing packaged snack food market. The consumer goods group manufactures and sells a variety of branded snack products through its extensive retail channel, including packaged cakes, croissants, rusks (baked wheat), and wafers.
Recently, Edita’s shares on the EGX have gained 9.78 percent, climbing from EGP27.30 ($0.579) on May 14 to EGP29.97 ($0.636) at the time of this report. This increase has boosted the company’s market capitalization to over $440 million.
Hani Berzi’s wealth flourishes as Edita Foods shares surge
Hani Berzi, who founded Edita Food Industries in 1996, currently serves as its chairman and managing director. He holds a significant stake of 41.95 percent through Quantum Invest BV, representing 303,323,015 ordinary shares.
Due to the share price increase, the market value of Berzi’s stake in Edita Foods has risen by EGP809.87 million ($17.18 million) over the past 13 days, growing from EGP8.28 billion ($175.63 million) on May 14 to EGP9.09 billion ($192.81 million).
The significant growth in the market value of Berzi’s stake not only cements his status as one of Egypt’s wealthiest individuals but also underscores his influential role in the country’s business landscape.
Your Money and Your Life: Caution advised despite Berzi stake rise
While Berzi’s stake in Edita Food has climbed recently, investors should be cautious. Year-to-date, the share price is down 3.88 percent. Factoring in the Egyptian pound’s devaluation, the total decline is a steeper 36.9 percent.
Edita Food investors face a double whammy: a 3.88 percent local-currency loss and a 36.9 percent loss when accounting for currency devaluation. A $100,000 investment at year-start would now be worth $63,100, representing a significant $36,900 loss. This underscores the risks of currency fluctuations and regional market volatility.
