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 2020, recording revenues of EGP 1,059.0 million, up a solid 37.8% versus 2Q2020 on the back of recovering volumes, and down just 2.7% versus 3Q2019 due to the residual impact of Covid-19 on operations.
Edita’s performance in the third quarter of the year was supported by a robust recovery in volumes, which recorded a 34.5% expansion versus 2Q2020. The recovery in volumes was bolstered by the gradual lifting of the government’s restrictive measures related to Covid-19 and the subsequent increase in traffic, along with increased opportunity for “on-the-go” snack food consumption.
In 3Q2020, Edita recorded a gross profit of EGP 362.6 million, with a stable gross profit margin of 34.2%, and up from the 31.7% margin recorded in 2Q2020. Net profit came in at EGP 107.5 million in 3Q2020, with a net profit margin of 10.2% for the quarter.
During the third quarter, Edita’s bakery segment, namely the “Molto” brand, was the standout performer; making the largest contribution to consolidated revenues for the period with the segment’s revenue for the third quarter expanding by 10.0% versus 3Q2019. Edita’s core cake and bakery segments witnessed impressive market share gains in the eight months to August 2020 largely driven by the introduction of several new SKUs earlier in the year.
Throughout the first nine months of 2020, Edita launched several new products and penetrated a new market segment to solidify its leading position in the snack food industry. The company strengthened and diversified its product offering across its existing segments, rolling out multiple products at its cakes, bakery, wafer, and candy segments. The new product launches come as part of a wider strategy aimed at further optimizing Edita’s product portfolio by rolling out innovative, higher value-for-money propositions. In May, Edita marked its entrance into Egypt’s EGP 5 billion biscuits market with the soft launch of Oniro, the company’s 10th brand and first offering in the biscuits segment.
On the sales and distribution front, Edita has expanded its distribution capabilities by more than 30% versus last year, with the company now enjoying an even wider reach across the entire country. During the quarter, Edita inaugurated two additional distribution centers bringing the total to 25 centers across Egypt.
On the regional front, construction work at Edita’s first overseas production facility in Morocco is progressing according to schedule with operations set to begin in 1Q2020.