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Thursday, 9 May 2019

Earnings watch: Edita, MNHD report 1Q2019 results

EARNINGS WATCH- Edita net profit increases 87.8% y-o-y in 1Q2019: High-profile snack food maker Edita recorded an 87.8% y-o-y increase in net profit for 1Q2019 to EGP 114.3 mn, according to the company’s earnings release (pdf). Revenues from the quarter reached EGP 982.2 mn, up 10.8% y-o-y, while net profit margins hit 11.6% versus 6.9% in the same quarter last year. “Top-line growth was both volume- and price-driven, while increased stability in commodity and raw material prices has allowed us to maintain tight cost-control measures and extract higher value from sales,” Edita Chairman Hani Berzi noted.

Cakes continued to be the largest share of total revenues in 1Q2019 at 46.4%, followed by croissants, which made up 28.3%. Rusks grew to 10.7% versus 7.9% in 1Q2018. Edita’s candy segment made up 4.4% share of 1Q2019 total revenues as the company introduced the BonBon line of juice-filled stick candies to strengthen their position in the fast-growing candy market. Gross exports were up 33.8% y-o-y to EGP 85.7 mn, comprising an 8.7% share of total gross revenues compared to 7.2% in 1Q2018, reflecting the importance of regional expansion for the company’s long-term growth.

Madinet Nasr Housing & Development (MNHD) reported consolidated net profit after tax of EGP 332.3 mn in 1Q2019, up 6% y-o-y from EGP 313 mn during the same period last year, according to the company’s earnings release (pdf). Consolidated revenues were up to EGP 634.22 mn, a 3.8% increase y-o-y from EGP 610.8 mn during the same period last year.

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