Edita Food Industries Reports 3Q/9M2022 Earnings

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Edita delivers record-breaking results with revenue crossing EGP 5.1 billion in 9M2022. In 3Q2022 revenues reached a new record, crossing the EGP 2 billion mark and net profit increased 2.5x year-on-year reaching EGP 286.1 million with a net profit margin of 14.2%. Regionally, export sales grew 40.3% y-o-y and a second production line is operational in Morocco which introduced Twinkies to the Moroccan market.

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 2022, recording revenues of EGP 2,015.6 million, a 44.5% y-o-y increase.

During the third quarter, profitability continued to improve substantially as reflected on gross profit and net profit results as well as margin expansions down the income statement. Edita saw a 65.1% y-o-y gross profit expansion to EGP 681.5 million while EBITDA doubled year-on-year. Net profit increased 2.5x year-on-year recording EGP 286.1 million in 3Q2022 with an associated net profit margin of 14.2% compared to 8.1% in the same quarter last year.

On a nine-month basis, Edita recorded revenues of EGP 5,147.7 million in 9M2022, up a strong 38.7% compared to 9M2021. Strong top-line growth filtered down to the company’s bottom-line which expanded an impressive 127.2% y-o-y in 9M2022 to EGP 630.2 million with an associated margin of 12.2% for the period versus the 7.5% reported in 9M2021.

Edita continued to expand its top-line to achieve record-breaking results despite an increasingly challenging operating environment and shifting macroeconomic dynamics. Rapid revenue growth during the quarter was supported by improved pricing and an optimized portfolio. Edita is constantly rolling out new value propositions that meet consumer demand and evolving tastes. In 3Q2022, Edita’s volumes recorded a 19.7% y-o-y increase in total packs sold to 932.8 million.

In terms of operational development, Edita is currently operating at very high utilization rates, especially in its core segments, reflecting strong consumer demand for its product portfolio. In order to meet growing demand, in August a newly purchased bakery line commenced operations adding further growth potential.

Furthermore, export sales have reached EGP 129.0 million in 3Q2022, up 40.3% y-o-y and contributing 6.5% to total revenue during the quarter.

On the regional front, Edita Morocco continues to deliver milestones and strengthen the company’s presence in the Moroccan market. In its third quarter of operations, Edita Morocco recorded EGP 36.9 million in revenue, bringing the total amount in 9M2022 to EGP 89.0 million and 47 million packs sold. In October 2022, the facility began operating a new cake production line, which introduced Twinkies products for the first time in Morocco.

Commenting on the results, Edita Chairman Eng. Hani Berzi said: “As we approach the end of the year, Edita’s performance year-to-date has been phenomenal and exceeded our 2022 target. As revenue crossed the EGP 5.1 billion and profit more than doubled year-on-year in 9M2022, I am ever more confident in our fundamentals, strategies and ability to carry this momentum moving forward. Edita’s results this quarter reflect not only resilience in testing times, but the company’s agility in swiftly responding to changing market conditions. In light of the devaluation of the Egyptian pound, we continue to monitor market dynamics and assess the situation from a position of strength and experience, and we will continue to follow our strategy which proved to be successful in previous cycles. Moreover, in line with our strategy for regional expansion and transforming our company into a multi-country institution, I am pleased with our performance at Edita Morocco and our growing export proceeds across the region.” Berzi concluded.