EGYPT – Edita Food Industries, Egyptian leader in packaged snack food market has inked a medium-term financing contract worth EGP 90m (US$5.725m) with the National Bank of Kuwait (NBK), to finance its capital expenditures.
The loan which is part of the Central Bank of Egypt (CBE) initiative to support Egyptian companies navigate the current tough economic environment triggered by the pandemic, comes with a seven-year term, reports Daily News Egypt.
Menna Shams El Din, Director of Investor Relations at Edita Food Industries, said that the loan will be used to finance the development of new production lines. It will also go towards financing the necessary maintenance to ensure the efficiency and production of quality products.
The company expects to reap the fruits of the investments in 2022 by gaining a larger market share specifically in the bakery and wafer segments.
The Company holds strong number-one market positions in its core cake and bakery segments as well as in candy, a number-two market position in rusks and a growing market position in the wafers segment.
In the financial year 2020 ended December 31, the Egyptian Exchange and the London Stock Exchange listed company earned a revenue of EGP 4.021 billion (US$255.7m).
The company’s top-line was supported by better pricing and product mix throughout the year, with the bakery segment continuing to be the main supporter of consolidated revenue, recording a 10.7% top-line expansion versus last year.
Edita’s gross profit recorded EGP 1.387 billion (US$88.2m), with a gross profit margin of 34.5%.
Net profit stood at EGP 302.2 million (US$19.2m) with an associated margin of 7.5% for the year.
In the fourth quarter of the period under review, Edita recorded revenues of EGP 1.229 billion (US$78.1m), up 12.6% y-o-y, reflecting a strong recovery from the challenges posed by Covid-19 earlier in the year.
Top-line growth supported an 11.3% y-o-y increase in gross profit to EGP 445.9 million (US$28.3m), with a gross profit margin of 36.3%.
Net profit for the quarter expanded 16.0% y-o-y to EGP 127.2 million (US$8.09m), with an associated net profit margin of 10.3%.
“Throughout 2020, Edita remained committed to its long-term growth strategy, while successfully navigating the short-term challenges.
“Edita pressed on with its portfolio optimization and diversification efforts, rolling out multiple new and upsized products across its existing segments, while simultaneously penetrating the fast-growing biscuits market,” indicated the company in a statement.
The manufacturer also went ahead with its planned capacity increases, strengthening its sales and distribution function with the additions of new vans and distribution centers. On the regional front, Edita completed construction work at its first overseas production facility in Morocco and is working on installing the facility’s first production line.
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