EGYPT – Edita Food Industries, Egyptian leader in packaged snack food market, is seeking to construct a new bakery production line.
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.
The strong and rising demand for the company’s Molto brand is evidenced by the successful rollout of multiple new products in 2020 and early 2021 including Edita’s Molto Sandwich and Molto Magnum product ranges.
“We plan to leverage the additional production muscle to further capitalise on the significant growth opportunities offered by the bakery segment and solidify our number one spot position in the market.”Edita Chairman – Eng. Hani Berzi
Rising demand for Edita’s Molto products has seen the company capture a rising share of the fast-growing market, with the company’s market share as per the latest Nielsen market data standing at 61.5% in April 2021.
Edita Chairman Eng. Hani Berzi said, “Edita is looking to take full advantage of the solid fundamentals of the fast-growing bakery segment, where we have been directing considerable investments to grow our capacity and product offering.
“We plan to leverage the additional production muscle to further capitalise on the significant growth opportunities offered by the bakery segment and solidify our number one spot position in the market.”
Edita is a pioneer in the baked goods segment having introduced the first packaged croissant brand in Egypt, and now offers over 30 innovative SKUs.
The company is also set to commission its first production line in Morocco and begin on ground operations by end of year.
Edita records stellar performance in first half year period
The Egyptian Exchange and London Stock Exchange listed company, has reported a 49.7% rise in revenue in the second quarter period ended 30 June 2021 to EGP 1.150 billion (US$73m).
On a six-month basis, Edita recorded revenues of EGP 2.317 billion (US$147m) in 1H2021, up a solid 33.7% versus last year.
Strong revenue growth filtered down to the company’s bottom-line which expanded 142.7% y-o-y to EGP 163.7 million (US$10.43m).
Edita’s strong results on both a quarterly and year-to-date basis were driven by growing volumes and an optimised product mix.
More importantly, its first half volumes exceeded pre-COVID-19 levels recorded in 1H2019 which highlights the strong and sustained recovery from the COVID-19-related slowdown recorded in 2020.
The rapid rebound in volumes was supported by Edita’s wafer, bakery and cake segments, which in 1H2021 recorded impressive year-on-year volume growth of 76.1%, 28.8% and 8.9%, respectively.
Additionally, Edita’s strong performance was supported by sustained pricing momentum across its portfolio thanks to its effective portfolio optimization strategies and price point migration.
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