Edita Food Industries plans to double its capital to reach US$5.4M
The company’s authorized capital will remain unchanged at US$7 million, while the issued capital will double, increasing the number of shares to 1,400,027,312, each with a nominal value of EGP 0.20 (US$0.004).
EGYPT – Edita Food Industries (EGX:EFID) S.A.E. has announced decisions made during its Extraordinary General Assembly Meeting, such as a capital increase and amendments to the company’s articles of association.
The Egyptian snack food manufacturer will raise its capital from US$2.7 million to US$5.4 million, financed through retained earnings from the fiscal year ending December 31, 2023.
This capital increase has received approval from the Economic Performance Department, with the company’s financial statements certified by the ordinary general assembly meeting scheduled for March 28, 2024.
Additionally, Edita Food Industries has made several amendments to its articles of association, including the introduction of cumulative voting for electing board members and the ability to appoint a chief executive officer to substitute the chairman in his absence.
The chairman or CEO is now authorized to represent the company in legal matters and before third parties.
Moreover, the amendments allow the chairman, managing directors, CEO, or other designated board members to sign on behalf of the company.
The ordinary general assembly meeting will now be valid with shareholders representing 50% of the company’s capital, and cumulative voting will be allowed for board election resolutions.
These adjustments reflect the company’s commitment to align its governance structure with regulatory requirements and support its growth strategy.
The measure is subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM), with Chairman Hani Berzi expected to oversee the execution details.
Through this initiative, Edita aims to strengthen its financial position to support its growth strategy in Egypt’s competitive food industry.
Edita Food Industries remains the dominant player in Egypt’s packaged snack market, producing cakes, croissants, rusks, and wafers, and benefiting from a robust retail network.
Although the company experienced significant revenue growth driven by price increases and higher sales in key product categories, its net profit decreased by 6.1% in 2024, falling from EGP 1.51 billion (US$30 million) to EGP 1.4 billion (US$27.66 million).
This decline was primarily due to the devaluation of the Egyptian pound in March and rising operational costs.
Chairman Hani Berzi, who holds a 41.95% stake through Quantum Invest BV, continues to lead the company’s regional expansion, reinforcing Edita’s presence beyond Egypt.
His share, valued at over US$160 million, cements his status as one of the wealthiest business figures in the country.
With this latest capital boost, Edita is positioning itself for long-term growth, focusing on strategic investments and regional expansion while leveraging its strong brand and operational expertise.
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