EGYPT – Edita Food Industries S.A.E., a leading player in Egypt’s packaged snack food market and dual-listed on the Egyptian Exchange (EFID.CA) and London Stock Exchange (EFID.L), has reported consolidated revenues of EGP 3.9 billion (US$ 127.6 million) marking a robust 25.5% year-on-year (y-o-y) increase for the third quarter of 2024.
Founded in 1996 and headquartered in Cairo, Edita Food Industries is a leading player in Egypt’s packaged snack food market, specializing in a wide range of branded baked snack products, including packaged cakes, biscuits, wafers, rusks, and candy.
According to the company, the 25.5% revenue growth in Q3 2024 was primarily driven by significant price increases, with the average price per pack rising by 50.0%, while the average price per ton surged by 43.4%.
Despite the higher prices, the total volume of packs sold decreased by 16.3%, totaling 828 million packs.
According to the company, this volume decline was primarily attributed to reduced sales in the cake and bakery segments, although smaller segments such as wafers and candy saw volume growth exceeding 10%, and rusks volumes increased by 14%.
The company’s expansion into new product categories, including vegan wafers and innovative biscuit flavors, also contributed to the growth in its smaller segments.
During the financial period, Edita’s gross profit increased by 18.0%, reaching EGP 1.22 billion (US$40.4 million). The gross margin was 31.2%, slightly down from 33.2% in Q3 2023.
Despite the rise in gross profit, the company reported a decrease in its EBITDA, which fell by 7.6% to EGP 620.7 million (US$ 20.6 million), with a margin of 15.9%.
Net profit for the quarter also saw a decline of 15.9%, totaling EGP 357.3 million (US$ 11.8 million), with a net profit margin of 9.1%, compared to 13.6% last year.
On a year-to-date basis, Edita’s revenue grew by 36.0% to EGP 11.9 billion (US$ 395.2 million), while net profit for the first nine months of 2024 reached EGP 1,106.9 million (US$ 36.6 million), with a margin of 9.3%.
In terms of segment performance, the cake segment remained a major revenue driver, generating EGP 1.9 billion (US$ 63.3 million) in Q3 2024, up 27.6% year-on-year.
This growth was driven by a 56.1% increase in the average price per pack, although volumes fell by 18.2%. The bakery segment reported revenue of EGP 1.3 billion (US$43.3 million), marking an 11.3% increase, while the wafers segment saw a remarkable 50.9% revenue growth, reaching EGP 353.7 million (US$11.7 million).
Edita’s revenue from the rusks segment grew by 52.0% to EGP 198.8 million (US$ 6.6 million), while the candy segment saw a 39.2% increase in revenue, reaching EGP 105.2 million (approximately USD 3.5 million).
The biscuits segment experienced the most significant growth, with a 126.4% increase in revenue totaling EGP 34.9 million (US$1.2 million). The frozen segment, while small, generated EGP 14.0 million (US$0.5 million) in revenue.
Regionally, Edita’s export sales experienced a significant boost, soaring 71.9% year over year to EGP 533.1 million (US$17.7 million), now representing 13.8% of total revenues. Key markets such as Libya, Iraq, Jordan, and Palestine were instrumental in driving this growth.
Edita Morocco further contributed to the company’s regional expansion, posting a staggering 239.3% revenue increase to EGP 122.3 million (US$ 4.1 million) in Q3.
Strategic developments, capacity expansion
Edita continued to invest in product innovation and operational capacity to strengthen its market position.
New product launches across various price points, including larger pack sizes and premium offerings, helped cater to evolving consumer preferences. The company introduced vegan wafer options and white chocolate-coated biscuits, tapping into niche segments to fuel growth.
On the production front, Edita expanded its capacity significantly. In July 2024, the company added a new bakery line, increasing production capacity by approximately 30%. This was followed by a new cake production line in October, boosting capacity by 28%. Efficiency enhancements further drove a 9% improvement in overall production output.
In line with its diversification strategy, Edita signed a toll manufacturing agreement with Misr Food Additives (MIFAD) to bolster production capacity for its Oniro biscuit brand. This move is expected to solidify Edita’s presence in the fast-growing biscuit market.
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