Egyptian tycoon Hani Berzi takes $15.8-million hit in Edita stake

Feyisayo Ajayi -

/*! elementor - v3.21.0 - 26-05-2024 */ .elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}

Key Points:

  • Hani Berzi’s stake in Edita Food Industries drops by $15.8 million in under two weeks due to the company’s stock price decline.
  • Despite earlier gains, Berzi’s stake sees a significant setback as Edita Food’s shares fall, impacting investors.
  • Year-to-date, owning shares in Edita Food reflects substantial losses, emphasizing caution amidst market volatility and currency devaluation risks.

Egyptian billionaire Hani Berzi’s wealth took a hit as the value of his stake in Edita Food Industries dropped by nearly $15.8 million in less than two weeks. The decline is tied to the recent fall in the company’s stock price on the Egyptian Exchange.

According to data tracked by Billionaires.Africa, the market value of Berzi’s stake in Edita Foods has decreased by EGP752.24 million ($15.76 million) over the past thirteen days due to the decline in the company’s share price.

This setback follows earlier gains made between May 14 and 27, when the value of Berzi’s stake surged by $17.18 million. During that period, his stake in the company rose from EGP 8.28 billion ($175.63 million) to EGP 9.09 billion ($192.81 million).

Edita Food stocks fall, investors bear losses

Edita Food Industries leads Egypt’s rapidly expanding packaged snack food market, producing and distributing various branded snack items such as cakes, croissants, rusks, and wafers through a broad retail network.

Hani Berzi, who founded the consumer goods conglomerate in 1996 and serves as chairman and managing director, owns a significant 41.95-percent stake, equivalent to 303,323,015 ordinary shares in the leading packaged food manufacturer through Quantum Invest BV.

Despite its market leadership, its shares on the Egyptian Exchange have fallen by 7.38 percent, declining from EGP30.23 ($0.64) on May 28 to EGP27.75 ($0.58) at the time of drafting this report. This decline has resulted in significant losses amounting to millions of dollars for its shareholders, including the affluent Berzi.

Hani Berzi’s stake drops $15.76 million

As a result of the recent decline in Edita Food’s shares, the market value of Berzi’s stake has declined by EGP752.2 million ($15.76 million) over the last 13 days, from EGP9.17 billion ($192.12 million) on May 28 to EGP8.42 billion ($176.36 million).

Despite the recent decline in the market value of his stake, Berzi remains a prominent investor on the Egyptian Exchange. The current market value of his holding has solidified his position as one of Egypt’s wealthiest businessmen.

Investor caution

Investors are urged to exercise caution amidst the overwhelming year-to-date loss associated with owning shares in Edita Food. Year-to-date, the company’s share price has declined by over 12 percent, with the total decline reaching a staggering 43.4 percent when factoring in the devaluation of the Egyptian pound.

The sustained decline in the company’s shares, coupled with the impact of currency fluctuations, highlights the inherent risks of regional market volatility. A $100,000 investment in the company since Jan. 1 would now be valued at $56,600, representing a substantial loss of $43,400.