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Wednesday, 3 November 2021

Edita profits up 5% in 3Q2021

Edita is recovering from covid just fine: Edita Food Industries’ net income rose almost 5% in 3Q2021, reaching EGP 112.4 mn from EGP 107.5 mn in the same period last year, according to the company’s latest earnings release (pdf). Revenues increased by a third to EGP 1.39 bn on higher volumes and better pricing, the company said.

Better pricing = higher revenues: The company has focused on shifting consumers to higher priced products and has raised the average price per package to EGP 1.79, up from EGP 1.63 in 3Q2020. Most recently, the company raised the price of Molto by EGP 1 and is now selling two ranges of the packaged croissants at EGP 3 and EGP 4, in a bid to improve its bottom line amid rising inflation. Sales volumes rose 20% during the quarter from a year earlier, driven by its cakes and wafers segments, Edita said.

Looking ahead: “The company will continue to expand production capacity and rolling out new, higher-value propositions, while shifting consumers increasingly towards higher price points,” it said in the release. It’s new factory in Morocco will start operations this month, marking a “key milestone” in its expansion overseas, it said. The production line will produce 2.7k tons of HoHos cakes each year before another three lines come online at a later date.

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