Edita announces share buybacks: Edita will buy back 5% of its shares over the next two months in a bid to support its share price, it said in a disclosure (pdf) to the bourse yesterday. The EGX-listed snackmaker said it would repurchase 36.2 mn shares, a program that would cost it almost EGP 295 mn at its current share price. Edita shares closed at EGP 8.14 yesterday.

What they said: Edita stock “is trading at a deep discount to fair value with huge upside potential,” IR director Menna Shams El Din told Enterprise. “We believe the best investment at the moment is investing in our company … We are bullish on the Egyptian snack food market, and we are focusing on regional expansion, with Morocco being the first milestone,” she added.

Edita has held up fairly well this year amid a heavy sell-off on the Egyptian stock market. The company’s share price has fallen less than 4% year-to-date, while the benchmark EGX 30 index has fallen 21%.

REMEMBER- Edita isn’t the only undervalued stock on the EGX right now. Last month the EGX 30 hit its lowest level since November 2016, triggered by a sell-off among foreign investors caused by worries over soaring global inflation, rising interest rates and a possible recession in the US.

Buybacks fuelled by rising profitability: Edita reported record revenues in 1Q 2022, helping the company deliver one of its most profitable opening quarters on record. This follows a strong 2021 for the company, which saw it post a 55% rise in net income EGP 471.9 mn. Edita is expected to report its 2Q earnings in the coming days.