Edita Food Industries Reports 3Q/9M2021 Earnings
Edita Food Industries Announces Rebranding of Twinkies SKU Portfolio, Introduces Higher EGP 3.00 Price Point
October 31, 2021Announcement of signing the Non-binding Letter of Intent entered into by and between Egyptian Belgian Company for Industrial Investments S.A.E. and Edita Food Industries S.A.E.
November 21, 2021
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 third quarter ended 30 September 2021, recording revenues of EGP 1,394.7 million, up by 31.7% y-o-y from the EGP 1,059.0 million recorded in 3Q2020. Net profit recorded EGP 112.4 million in 3Q2021, an increase of 4.6% from the EGP 107.5 million reported for 3Q2020.
Rapid top-line growth during 3Q2021 was driven by an expansion in volumes sold and better pricing owing to Edita’s increasingly optimized portfolio. The company delivered growth in profits for the period despite the effects of global commodity price inflation, which has seen global commodity prices reach multiyear highs.
On a nine-month basis, Edita recorded a top line of EGP 3,711,8 million in 9M2021, an increase of 33.0% year-on-year. Rapid top-line growth during the period drove an increase of 57.8% y-o-y in Edita’s net profit, which recorded EGP 276.2 million for 9M2021.
Edita’s volumes continued to exceed pre-COVID-19 levels as at 9M2021, reflecting a steady improvement in market conditions and the company’s implementation of its portfolio optimization and investment strategies, which have allowed Edita to efficiently meet consumer demand and capture market share. Volume growth during 3Q2021 was driven by Edita’s cakes, wafers, and rusks segments, which recorded year-on-year expansions of 31.2%, 45.0%, and 20.0%, respectively.
On the regional front, having completed construction work at its first overseas production facility in Morocco earlier in the year, with an investment cost of c. EGP 200 million to date. Edita’s first offshore production line is now operational, dedicated to the cakes segment, has a capacity of 2.7 thousand tons per annuum and will introduce Edita’s flagship “HoHos” products to the Moroccan market. The new facility marks a major milestone in Edita’s regional expansion strategy, strengthening its presence in the attractive Moroccan market and setting the foundations for further growth across the region.
