Back to the complete issue
Tuesday, 3 August 2021

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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.