Hani Berzi’s Edita Foods stake drops $11.6 million

Feyisayo Ajayi -
Key Points
  • Hani Berzi's 44.07% stake in Edita Food Industries has lost $11.6 million, dropping from $197 million to $185.4 million.
  • Edita’s stock fell 5.91% in two weeks, reducing its market capitalization to below $425 million on the Egyptian Exchange.
  • Edita’s 40.45% decline in dollar terms reflects broader market struggles, impacted by Egypt's currency depreciation and economic instability.

Egyptian businessman Hani Berzi, chairman and managing director of Edita Food Industries, has faced a substantial financial setback as his 44.07 percent stake in the packaged snack giant saw a sharp $11.6 million decline in value.

This drop comes as shares of Edita tumbled on the Egyptian Exchange (EGX), further highlighting the challenges facing Egypt’s business elite amid a volatile economic landscape.

Through Quantum Invest BV, Berzi owns over 308.5 million shares of the company, which produces iconic products such as croissants, cakes, and wafers.

His stake, valued at $197 million just two weeks ago, now hovers at $185.4 million—a reversal after a brief surge in October added nearly $17 million to his holdings

Edita's market cap falls below $425 million

Despite Edita's leading position in Egypt’s packaged snack market, its shares on the EGX have slipped into year-to-date losses.

Over the past two weeks, shares dropped 5.91 percent, from EGP31.64 ($0.64) on Nov. 6 to EGP29.77 ($0.6), reducing its market capitalization to below $425 million.

As a result of the recent decline in its share price, the market value of Hani Berzi’s stake in the group has declined from EGP9.76 billion ($197.03 million) on Nov. 6 to EGP9.18 billion ($185.38 million) at the time of drafting this report.

Your Money and Your Life

Amid Egypt’s economic uncertainty, Edita Food Industries' stock reflects broader market struggles, with foreign currency shortages and rising inflation impacting consumer goods companies.

The company has seen a 4.52 percent year-to-date decline, but the loss deepens when adjusted for the depreciation of the Egyptian pound.

In dollar terms, the stock has declined 40.45 percent, highlighting Egypt's currency challenges in 2024. A $100,000 investment in Edita at the start of the year would now be worth just $59,548, losing $40,452.