Earnings watch: Edita, Etisalat Misr
Edita’s bottom line surged over twenty five-fold y-o-y in 2Q2021 to EGP 83 mn from EGP 3.1 mn in the previous year, driven by “strong top line growth,” new product launches and recovering consumption, the company said in an earnings release (pdf). The snackfood maker’s top line grew almost 50% y-o-y to register EGP 1.15 bn from April-June on the back of increased revenues from its cakes, wafers and bakery segments.
On a six-month basis, Edita’s top line surpassed pre-pandemic levels recorded in 1H2019, reaching EGP 2.3 bn in 1H2021, up 33.7% compared to last year. “Signaling a solid recovery,” net income also demonstrated “impressive growth with expanding margins,” growing 142.7% y-o-y to EGP 163.7 mn in 1H2021.
Looking ahead, Edita’s first production line in Morocco is expected to be up and running later this year, marking “a key step in delivering on the company’s regional growth strategy,” according to the release. A new bakery production line — set to give the company a 20% boost in production capacity — will also be introduced by the end of 1Q2022. On the financing front, Edita secured EGP 90 mn in medium-term funding in March through the CBE’s low-interest financing initiative to bankroll its capital expenditure plans in Egypt.
Etisalat Misr reported revenues of AED 1.23 bn (c. EGP 5.27 bn) in 2Q2021, recording a 25% y-o-y increase in EGP terms, according to the company’s financial results (pdf). Top line growth was mainly driven by a bump in mobile data traffic, alongside growth in the company’s wholesale business. Etisalat’s Egyptian arm reported a “marginal increase” in capex as it “focused on network coverage and capacity. Egypt accounted for c. 9% of Etisalat’s total group revenues of AED 13.2 bn.