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CAIRO - Edita Food Industries (EGX:EFID) S.A.E., a prominent player in the Egyptian packaged snack food market, has reported a substantial revenue increase of 33.2% year-over-year, reaching EGP 16.1 billion for the fiscal year 2024. Despite facing inflationary challenges, the company’s strategic pricing initiatives have bolstered its financial performance. However, net profit for the year experienced a 6.1% decline, settling at EGP 1.4 billion, influenced by higher direct costs and operational expenses.
In the fourth quarter of 2024, Edita continued to exhibit revenue growth, with a 25.9% increase year-over-year, amounting to EGP 4.2 billion. The net profit for the quarter, however, saw a 4.8% decrease compared to the same period in the previous year.
Edita’s growth trajectory in FY2024 was attributed to the introduction of new stock-keeping units (SKUs) and optimized pricing strategies, which included direct and indirect price increases across all segments. The company’s volume sales were mixed, with an overall decline of 3.8% year-over-year to 3.84 billion packs, primarily due to reduced volumes in the cake, bakery, and rusks segments. Conversely, the wafers, candy, biscuits, and frozen segments experienced significant volume growth.
The company’s gross profit increased by 25% year-over-year to EGP 4.9 billion, reflecting a gross profit margin of 30.4%. The cost of goods sold (COGS) rose by 36.5% year-over-year, driven by escalating raw material prices and production costs.
Selling, general, and administrative expenses (SG&A) also increased by 45% year-over-year, reaching EGP 2.6 billion, due to the expansion of Edita’s distribution network. This expansion aligns with the company’s strategy to enhance market presence and is reflected in SG&A expenses accounting for a higher percentage of sales compared to the previous fiscal year.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year increased by 7.3% to EGP 2.5 billion, though the EBITDA margin decreased from the previous year.
Edita also reported significant growth in net export sales, which rose by 42.1% year-over-year. Edita Morocco’s revenues also increased, supported by an expanded distribution network.
Throughout FY2024, Edita has focused on expanding its product portfolio, enhancing market presence, and driving operational efficiency through strategic partnerships and innovations. It has also taken significant steps in digital transformation and financial optimization.
In terms of segment performance, cakes and bakery remained the primary revenue drivers, with the cake segment alone generating EGP 8.3 billion in revenue. The company’s diversification into new product categories, such as frozen baked goods, has also contributed to its financial results.
Edita’s balance sheet shows an increase in total loans and borrowings, with a net debt position as of the end of December 2024. The company invested significantly in capital expenditures, primarily for expansion-related investments in production lines.
This report is based on a press release statement and reflects Edita Food Industries’ financial performance for the fiscal year ended 31 December 2024.
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