Edita Food Industries posts 25.5% revenue growth in third quarter

CAIRO - Edita Food Industries (EGX:EFID) S.A.E. (EFID.CA on the Egyptian Exchange & EFID.L on the London Stock Exchange (LON:LSEG)), a prominent player in the Egyptian snack food market, reported a 25.5% increase in revenues for the third quarter ended September 30, 2024, reaching EGP 3.9 billion. This growth was primarily attributed to strategic repricing to counter inflationary pressures. Despite the revenue surge, the company experienced a 15.9% drop in net profit to EGP 357.3 million, with a net margin of 9.1%.

The company's gross profit for the quarter rose by 18.0% year-on-year to EGP 1.2 billion, though the gross profit margin slightly contracted to 31.2% from 33.2% in the same quarter the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a decline of 7.6% year-on-year to EGP 620.7 million, with the margin falling to 15.9%.

Significant volume declines were seen in the cakes and bakery segments, with a 16.3% decrease in the total number of packs sold. However, the company reported volume growth in smaller segments such as wafers, candy, and biscuits, with biscuits volumes more than doubling during the quarter.

Edita's export sales showed robust performance, surging by 71.9% year-on-year to EGP 533.1 million, now representing 13.8% of total revenues. The growth in exports was driven by strong demand in markets including Palestine, Libya, Iraq, and Jordan. Edita Morocco also reported substantial revenue growth of 239.3% year-on-year in the third quarter.

Operational developments included the expansion of Edita's portfolio with higher price points and new product launches catering to various consumer preferences. The company also increased production capacities in key areas to meet market demand.

In terms of segment performance, the cake segment led revenue growth with a 27.6% increase year-on-year, while the bakery segment grew by 11.3%. The wafers, rusks, and candy segments also reported substantial revenue growth. The biscuits segment showed the highest growth rate in terms of revenue, with an increase of 126.4% year-on-year.

The company's total borrowings stood at EGP 3.1 billion as of September 30, 2024, with a cash balance of EGP 1.4 billion. Capital expenditures for the period amounted to EGP 1.0 billion, primarily directed toward expanding production lines.

This financial overview is based on a press release statement from Edita Food Industries.

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