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 2019, recording revenues of EGP 1,088.4 million, a 7.0% increase compared to the same period a year ago. Net profit for the quarter came in at EGP 106.6 million, up 19.2% from the same quarter of 2018. In the first nine months of the year, Edita reported a 9.0% y-o-y top-line expansion to EGP 2,933.4 million, with net profit up 44.0% y-o-y to EGP 252.6 million in 9M2019.
Commenting on the quarter’s performance, Edita Chairman and Managing Director Eng. Hani Berzi said: “We are witnessing strong contributions from the croissant, rusks and wafer segments where new product launches are helping build an optimized product mix, driving higher utilization rates at our facilities and are strengthening Edita’s position in an increasingly competitive market. Meanwhile our cost control efforts and stable cost of direct materials helped Edita to deliver margin expansion and strong sustainable earnings growth.”
Edita reported a 20.3% y-o-y expansion in gross profit to EGP 385.1 million in the third quarter of the year, with GPM for the period up 3.9 percentage points to 35.4%. In the nine-month period, gross profit was up 24.1% y-o-y to EGP 1,021.5 million, with GPM up 4.2 percentage points year-on-year to 34.8%.
Edita’s exports contributed 8.1% to its total gross sales in 3Q2019. The channel recorded EGP 88.9 million in export gross sales, with the year-to-date gross export sales showing a 5.7% y-o-y rise to EGP 239.1 million.
On the regional front, Edita continues to make progress on the construction of its new manufacturing facility in Morocco, which is expected to break ground before the end of 2019. The Moroccan government had also recently reinforced its support of the project, awarding Edita a MAD 15 million grant as part of a home-grown incentive program to spur foreign direct investment, boost economic development, and transform the Kingdom into an export hub.