EGYPT – Edita Food Industries, a leader in the Egyptian packaged snack food market, has recorded strong full year results for the period ended December 2021, and saw revenues exceed the EGP 5 billion (US$273m) mark, up 30.6%.
Net profit recorded was EGP 471.9 million (US$25.77m), up an impressive 54.7% compared to last year, with a net profit margin of 9.0%.
The growth in earnings was driven by both higher volumes and pricing, which shows the company’s ongoing resilience.
Also, the company reaped the benefit from its optimized portfolio and growing consumer demand for its products to deliver strong bottom-line results.
Edita’s volumes for the period under review continued to exceed pre-Covid-19 levels and reached pre-devaluation levels, reflecting the company’s ability to drive demand at higher price-points and deliver growth.
Total packs sold increased by 16.6% y-o-y to 2.897 billion, with cakes, bakery and wafers being the biggest contributing segments.
In FY2021, net profit margin expanded despite surges in raw material costs and inflationary pressures pushing global commodity prices to record-highs.
Commenting on the results, Edita Chairman Eng. Hani Berzi said, “This year Edita achieved remarkable results delivering strong double-digit year-on-year revenue and net profit growth despite an unpredictable global business environment.
“We are heading into 2022 having successfully proven Edita’s resilience and are back to expansion mode. We look forward to carrying this year’s successful momentum forward by expanding our production capacity to deliver higher-value propositions, strengthening our distribution and sales function, capturing a growing market share across various segments and ramping up production at the Morocco facility.”
The snack maker completed construction work at its first overseas production facility in Morocco, which is dedicated to the cakes segment with a capacity of 2.7 thousand tons per annum.
In December 2021, operations began at the facility with the launch of three SKUs of the HOHOs flagship brand.
The facility marks a major milestone in the company’s regional expansion goals, enables Edita to strengthen its presence in the attractive Moroccan market and sets the foundation for further expansions across the region.
Also, during the financial year, Edita commenced construction of a new bakery production line in its home market.
The new production line, which will be housed at Edita’s E07 facility, comes at an investment cost of EGP 135 million and is expected to be operational by February 2022.
It is set to expand Edita’s bakery annual production capacity by 11,000 tons, allowing the company to meet the growing demand for its Molto products while further cementing its leadership position in this attractive market.
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