Edita Food Industries Reports 2Q2021/1H2021 Earnings

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Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange & EFID.L on the London Stock Exchange), a leader in the Egyptian packaged snack food market, announced today its results for the second quarter ended 30 June 2021, recording revenues of EGP 1,150.8 million, up an impressive 49.7% from the comparable quarter of last year. Net profit recorded EGP 83.0 million in 2Q2021, up from EGP 3.1 million last year with a net profit margin of 7.2%. On a six-month basis, Edita recorded revenues of EGP 2,317.1 million 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 in 1H2021. 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, Edita’s 1H2021 volumes have 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.

Edita’s strong performance during the six-month period is also reflected on its market outperformance with significant market share gains recorded across its cakes, bakery, and wafers segments. More specifically, since the start of 2020, Edita’s bakery market share has expanded more than 15 percentage points to reach 65.8% in May 2021, while its wafers market share has doubled from the lows recorded in June 2020 to reach 14.2% in May 2021. Growing demand across Edita’s segments has been supported by new product launches, which continue to prove increasingly popular amongst consumers. On an operational level, Edita is commissioning its first production line in Morocco; and it is set to begin on ground operations by end of year.

Commenting on the results, Edita Chairman Eng. Hani Berzi said: “The second quarter of 2021 was another remarkable one for Edita which saw us build on a strong start to the year to post impressive operational and financial results on both a quarterly and year-to-date basis. Most notably, supported by a strong second quarter, our results for the first six months of the year saw us exceed pre-COVID-19 levels recorded in the first half of 2019. While this is in part due to the widespread recovery we have witnessed since mid-2020. The sustained recovery led us to expand our Capex plans with the addition of a new bakery line, since our utilization in this segment is currently near full capacity. It will be operational by end of 1Q2022.”

“As we enter the second half of the year, our strategy remains unchanged with the company working to deliver sustainable and diversified growth in line with its long-term targets. Our immediate focus remains on driving volume growth across the entirety of our product portfolio while further optimizing our offering and maintaining tight cost controls to deliver earnings growth. All in all, we are optimistic about the company’s prospects for the remainder of the year as the snack food market and wider economy recover further and our strategic investments continue to bear fruit,” Berzi concluded.