REG - Edita Food Ind SAE - Edita FY2023 Results

Edita Food Industries SAEAnnouncement

04/03/2024 07:00

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RNS Number : 3637F  Edita Food Industries S.A.E.  03 March 2024

Cairo, 3 March 2024

Edita Food Industries Reports FY2023 Earnings

Edita reports record-breaking results despite the challenging business
environment, with revenues up 58.1% y-o-y to EGP 12.1 billion in FY2023;
profitability remained strong with Edita's bottom-line reaching EGP 1.5
billion in FY2023 and net profit margin stable at 12.4%

http://www.rns-pdf.londonstockexchange.com/rns/3637F_1-2024-3-3.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3637F_1-2024-3-3.pdf)

 

Highlights of FY2023

Summary Income Statement (EGP mn)

 EGP mn        4Q2023   4Q2022   Change  FY2023    FY2022   Change
 Revenue       3,372.0  2,523.4  33.6%   12,126.0  7,671.1  58.1%
 Gross Profit  1,098.0  850.9    29.0%   3,925.3   2,607.8  50.5%
 % Margin      32.6%    33.7%            32.4%     34.0%
 EBITDA        582.7    478.2    21.9%   2,365.7   1,492.3  58.5%
 % Margin      17.3%    18.9%            19.5%     19.5%
 Net Profit    324.2    329.3    -1.5%   1,506.6   959.4    57.0%
 % Margin      9.6%     13.0%            12.4%     12.5%

The discussion and analysis in this report are based on the IFRS statements.
For comparison of the results to Egyptian Accounting Standards, please refer
to the section "Egyptian Accounting Standards Reconciliation to IFRS."

 

Results in a Nutshell

Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange & EFID.L on
the London Stock Exchange), a leader in the Egyptian packaged snack food
market, announced today its results for the year ended 31 December 2023. The
company recorded revenue of EGP 12,126.0 million, showing a robust 58.1% y-o-y
increase driven by a strong performance across all segments, primarily due to
improved pricing across the portfolio. Moreover, volume recovery was also a
key attribute for operational leverage. Gross profit grew 50.5% y-o-y to EGP
3,925.3 million in FY2023, accompanied by an associated margin of 32.4%.
EBITDA climbed 58.5% y-o-y to reach EGP 2,365.7 million during the period,
maintaining a stable margin of 19.5% despite inflationary pressures.
Meanwhile, net profit increased by 57.0% y-o-y, generating EGP 1,506.6 million
in FY2023, with a stable net prof-it margin of 12.4% compared to FY2022.

 

On a quarterly basis, Edita recorded revenues of EGP 3,372.0 million in
4Q2023, up 33.6% from 4Q2022. Over the same period, net profit registered EGP
324.2 million, down 1.5% y-o-y compared to a high base in 4Q2022 and with an
associated margin of 9.6%.

 

In the face of the current operating environment and inflationary pressures,
Ed-ita's enduring success and sustained growth bear testament to the dynamism
and resilience of its business model, its ability to take proactive measures
and adapt to market conditions while promoting operational efficiency, and its
un-wavering commitment to innovation. Throughout the year, Edita consistently
introduced new products and SKUs, implemented both direct and indirect price
increases, and strategically entered new market segments, effectively
appeal-ing to a large consumer base across the diverse snack food market.
Edita dem-onstrated revenue growth across all segments, driven by a
combination of price increases and higher volumes. The average price per pack
increased by 40.0% y-o-y, reaching EGP 3.04, while the average price per ton
saw a substantial 49.5% y-o-y increase. Despite these price adjustments, the
number of packs sold continued to rise, increasing by 12.9% compared to
FY2022, with a total of 3,993 million packs sold by the end of the year. On a
quarterly basis, the average price per pack increased by 44.0% y-o-y, reaching
EGP 3.34. Total packs sold in the quarter amounted to 1,010 million,
reflecting a slight 7.2% y-o-y decrease due to lower sale volumes at the cake
segment during 4Q2023.

 

In FY2023, gross profit for Edita reached an impressive EGP 3,925.3 million, a
re-markable y-o-y increase of 50.5% and maintaining a strong associated gross
profit margin of 32.4%. This notable growth in gross profit and the steady
margins were achieved despite a significant 68.2% y-o-y increase in the cost
of sales, totaling EGP 6,979.5 million in FY2023. Higher costs were driven by
inflationary pressures and a series of devaluations to the Egyptian pound.
Despite these challenges, Edi-ta's strong revenues played a crucial role in
absorbing the increases of direct mate-rial costs. Manufacturing overheads
(MOH) also declined as a percentage of sales to 8.7% in FY2023 compared to the
10.1% recorded in the previous year as result of efficient cost cutting
initiatives and higher operating leverage. In 4Q2023, Edita recorded a gross
profit of EGP 1,098.0 million, marking a substantial 29.0% y-o-y increase, and
maintaining an associated margin of 32.6%.

 

Total SG&A increased to EGP 1,788.8 million in FY2023, up by 42.6% y-o-y.
This increase was primarily driven by a 63.4% y-o-y increase in general and
adminis-trative expenses, a 34.1% y-o-y increase in advertising and marketing
expenses, and a 28.9% increase in selling and distribution expenses. Despite
these escala-tions, SG&A as a percentage of sales decreased to 14.8%,
compared to 16.4% last year. On a quarterly basis, total SG&A amounted to
EGP 567.9 million in 4Q2023, up 44.5% y-o-y.

 

EBITDA for the year stood at EGP 2,365.7 million in FY2023, reflecting a
notable 58.5% y-o-y increase, while EBITDA margin was stable at 19.5% compared
to last year's figure. The consistent strength in EBITDA performance was
attributed to solid revenues and improved operational efficiencies. In 4Q2023,
EBITDA re-corded EGP 582.7 million, up 21.9% y-o-y with a 17.3% margin.

 

Net profit recorded an increase of 57.0% y-o-y to EGP 1,506.6 million in
FY2023 with an associated profit margin of 12.4%. On a quarterly basis, net
profit re-corded EGP 324.2 million in 4Q2023, down 1.5% y-o-y and with a net
profit margin of 9.6% compared to 4Q2022. The decline in quarterly
profitability re-flects FX gains recorded in 4Q2022 following the Egyptian
Pound's devaluation in October of that year versus FX loss booked in 4Q2023.
Additionally, Edita's bottom-line in was further weighed by a 34.3% y-o-y
increase in interest ex-penses to EGP 145.5 million during the period.

 

Edita recorded gross export sales of EGP 1.1 billion, up by 107.3% y-o-y and
contributing 9.3% to total revenue versus 7.1% last year. In USD terms, export
sales booked USD 36.1 million in FY2023, up 33.8% y-o-y. In 4Q2023, the
company recorded gross export sales of EGP 336.7 million vs EGP 227.1 million
booked last year, marking a 47.1% y-o-y increase.

 

On the regional front, Edita Morocco recorded EGP 326.2 million in revenues in
FY2023, up by a notable 85.0% y-o-y. The company continues to expand its
port-folio in Morocco with plans to add a new MAD 3 price point and enter the
layered cake subsegment in the first quarter of 2024.

 

Operational Developments

Recently, the company entered the previously untapped frozen food segment in
Egypt through the acquisition of 'Fancy Foods' in May 2023. Following the
acquisi-tion, the company promptly elevated the acquired assets to meet its
high stand-ards and commenced operations under its subsidiary, Edita Frozen
Food Indus-tries. In October 2023, the company launched its first brand, Molto
Forni, bringing the convenience of fresh, authentic, and at-home consumption
to consumers in line with its strategy to grow revenue streams and capture new
demand.

 

The product release included mini frozen croissant and puff pastry products,
with four savory fillings, and available in two sizes: 6 pcs and 12 pcs.

 

Parallel to venturing into the frozen segment, Edita also expanded its core
product portfolio by introducing a variety of new and differentiation products
across all seg-ments. In the cake segment, Edita unveiled a new addition in
January 2024 to its flagship brand, TODO - the TODO Cupcake, available in
different flavors and fillings: Chocolate Cupcake filled with either Chocolate
or Salted Caramel, a Vanilla Cupcake filled with Chocolate, and a Red Velvet
Cupcake filled with Cream Cheese. This launch introduced a new of price point
of EGP 10, aligning with the company's pricing strategy to transition
consumers to higher price points and offer enhanced value propositions to its
customers. In October 2023, the company also launched HOHOs Extreme,
fea-turing an extra creme-filled, larger-sized variation of its typical HOHO's
cake, retailing at EGP 5. Earlier in June, Edita introduced HOHOs Mix
retailing at EGP 7.

 

In the bakery segment, Edita introduced a direct price increase on its Molto
XXL, migrating consumers from EGP 5 to EGP 7 in December. In addition to this,
Edita unveiled a new product in November 2023, the Molto Yums, a filled pie
available in three flavor fillings: Chocolate Hazelnut, Apple Cinnamon, and
Custard, all of-fered at a new price point of EGP 12. This launch introduced
original flavors within its Molto brand, a testament to the Research and
Innovation (R&I) department's continuous efforts. At the beginning of
2023, Edita introduced Molto Magnum Mix in three flavors - Chocolate and
Cream, Salted Caramel and Cream, and Strawberry Cheesecake and Cream,
available in single serve croissants and mini croissants, both priced at EGP
10 per pack. Edita also launched Molto XXL Plus, a new variation of the
popular Molto XXL, featuring additional flavor filling and retailing at EGP 8
in the same month.

 

In the wafer segment, Edita rolled out a White Chocolate Coated Rolled Wafer
filled with Cocoa & Hazelnut Cream retailing at EGP 5, in early January
2024. Preceding this in mid-December 2023, Edita made a significant stride by
launch-ing its first-ever vegan product under the Freska brand - a wafer
filled with Cocoa Cream, priced at EGP 5 per pack. This initiative underscores
Edita's commitment to innovation and meeting evolving market demands,
particularly the increasing preference for plant-based alternatives and
healthier trends.

In the rusks segment, Edita kicked off 2024 by introducing three
limited-edition Bake Rolz offerings under its rusks segment: Firey Cheese,
Extra Spicy Kebab, and Flaming Hot Pizza, priced at EGP 7 per pack. In June
2023, the company also launched a new rusks SKU retailing at EGP 10, migrating
consumers to higher price points.

 

In the rusks segment, Edita kicked off 2024 by introducing three
limited-edition Bake Rolz offerings under its rusks segment: Firey Cheese,
Extra Spicy Kebab, and Flaming Hot Pizza, priced at EGP 7 per pack. In June
2023, the company also launched a new rusks SKU retailing at EGP 10, migrating
consumers to higher price points.

 

In the candy segment, Edita expanded its Mimix line by introducing a new candy
family in January 2024, Caramelo, that features a delightful toffee flavor,
retail-ing at EGP 5. This move reflects the company's focus on growing both
key and emerging segments.

 

In the biscuit segment, Edita introduced Oniro Cookies in November 2023,
offer-ing two new variations of its traditional Oniro - Vanilla and Chocolate
Cookies filled with Hazelnut Cream, priced at EGP 5. Earlier in April, Edita
also launched Oniro Coated Lava, a Chocolate and Vanilla biscuit filled with
Chocolate Hazel-nut Cream and coated with Chocolate, priced at EGP 5 per pack.
This product launch aimed to strengthen the company's position in the biscuit
market.

 

On the digitalization front, Edita's subsidiary, Edita Trade and Distribution,
part-nered with Fawry, the leading provider of e-payment services in Egypt, to
facilitate cashless collections across Edita's points of sale. The partnership
will en-able the company to deploy Fawry's fintech solutions, transforming its
trade cash management processes, streamlining cashless collections by Edita's
sales repre-sentatives, optimizing financial transactions, and driving Edita's
overall opera-tional efficiency.

 

Throughout the year, Edita secured three loans: one from the International
Fi-nance Corporation (IFC) with an amount of USD 45 million, and two
medium-term loans with the National Bank of Kuwait (NBK), amounting to EGP 190
million and EGP 200 million, respectively. These loans were instrumental in
facilitating the development and expansion of Edita's operations within the
snack food industry, including the acquisition of Fancy Food and the
establishment of its new subsidi-ary, Edita Frozen Food Industries.

 

At the beginning of the year, the company also unveiled a new branding and
logo that better reflects its rapid growth and strategic focus on product
diversity and regional expansion. The rebranding stood as a cornerstone to the
company's vi-sion, values, and growing aspirations, reflecting the company's
commitment to spreading joy and consistently delivering the highest level of
quality to meet the evolving tastes of its consumers. -

 

Overview of Segment Performance

In FY2023, Edita's consolidated revenue reached EGP 12.1 billion, marking a
robust y-o-y growth of 58.1%, fueled by a strong performance across all
segments. The cake segment was the strongest growth driver for the year,
recording EGP 6,032.5 million, up 59.2% y-o-y on the back of a 45.4% y-o-y
rise in the average price per pack and a 9.5% y-o-y increase in the number of
packs sold. Growth was also driven by a solid performance at the bakery
segment, which recorded a 61.1% y-o-y in-crease in revenues to EGP 4,066.6
million in FY2023. Bakery growth was driven by a 33.4% y-o-y increase in the
average price per pack and a 20.8% rise in packs sold. Meanwhile the wafer
segment crosses the billion-pound mark in revenues, record-ing sales of EGP
1,079.0 million in FY2023, up 45.2% y-o-y driven by a 24.1% rise in the
average price per pack and a 17.1% increase in packs sold compared to the
previous year. At the rusks segment, revenues recorded a 36.4% y-o-y growth to
EGP 545.0 million in FY2023, reflecting a 42.6% y-o-y increase in the average
price per pack, which helped offset a slight 4.3% y-o-y decrease in the number
of packs sold. During the year, Edita's smaller candy and biscuits segments
also showed strong growth in revenues. In the candy segment, revenue grew
74.8% y-o-y to reach EGP 307.7 million, primarily driven by volumes increasing
72.8% y-o-y and a marginal 1.2% y-o-y increase in the average price per pack.
As for biscuits, the segment's revenue more than doubled at 105.7% y-o-y to
EGP 80.1 million in FY2023, on the back of a 45.3% y-o-y increase in the
number of packs sold and a 41.6% increase in the average price per pack. In
its new frozen segment, Edita brought in EGP 14.9 million in FY2023 following
the launch of its inaugural line un-der the Molto Forni brand in October 2023.

 

On a quarterly basis, cake revenue registered a 22.4% y-o-y growth to EGP
1,568.3 million in 4Q2023, attributed to a substantial 45.7% y-o-y price
in-crease which offset a 16% y-o-y reduction in packs sold. In the bakery
seg-ment, revenues came in at EGP 1,204.6 million in 4Q2023 reflecting a
sig-nificant 42.4% y-o-y increase. This growth was primarily driven by a 35.2%
y-o-y average price increase and a 5.2% y-o-y volume growth in packs. At the
wafer segment, revenues reached EGP 296.5 million in 4Q2023, marking a notable
37.7% y-o-y increase due to a 23.0% y-o-y price increase and an 11.9% y-o-y
increase in packs sold. Rusks revenue rose by 31.7% y-o-y to EGP 162.7 million
in 4Q2023, on the back of a 45.6% y-o-y increase in price, which outweighed a
slight 9.5% y-o-y reduction in volumes. In 4Q2023, candy revenue more than
doubled, reaching EGP 103.5 million and posi-tively impacted by a remarkable
91.5% y-o-y growth in packs sold and a 9.7% y-o-y increase in average price
per pack. During the period, the bis-cuit segment showed an impressive 224.3%
y-o-y increase to EGP 22.0 mil-lion, supported by a substantial 95.3% y-o-y
increase in packs sold and a 66.1% y-o-y increase in price.

 

Edita's consolidated gross profit grew 50.5% y-o-y to EGP 3,925.3 million on
the back of robust growth across all segments. Amid a challenging operating
environ-ment, the company maintained profitability by implementing effective
pricing strategies and improving operational efficiency, thereby mitigating
the impact of increased direct material prices, and keeping manufacturing
overhead (MOH) low compared to revenues.

 

On a segment basis, the cakes segment recorded a 64.4% y-o-y growth in gross
profit to EGP 2,122.4 million in FY2023, with an expanded gross profit margin
(GPM) of 35.2% compared to 34.1% in FY2022. This growth was attributed to
indirect price increases applied across its product portfolio in the segment.
Meanwhile, the bak-ery segment recorded a 33.6% y-o-y increase in gross profit
to EGP 1,211.0 million in FY2023, with a contracted GPM of 29.8% compared to
35.9% in the previous year due to higher production costs. The wafer segment
recorded a gross profit of EGP 350.2 million, up 40.4% y-o-y with a relatively
stable GPM of 32.5% for the year. At the rusks segment, gross profit grew by
30.2% to reach EGP 153.3 million in FY2023, accompanied by a slightly lower
GPM of 28.1% compared to 29.5% in FY2022. At the candy segment, gross profit
substantially increased by 136.5% y-o-y to EGP 86.6 million, with an expanded
GPM of 28.1% compared to 20.8% in the previous year with the strong growth in
volumes improving operating leverage at the segment. Finally, the biscuit
segment generated EGP 14.6 million in gross profit in FY2023, more than
doubling at 127.3% y-o-y and booking an expansion in GPM to 18.3% compared to
16.5% in FY2022.

 

On a quarterly basis, gross profit from the cakes segment registered a 28.9%
y-o-y growth in 4Q2023, reaching EGP 572.4 million, accompanied by an expanded
gross profit margin of 36.5% versus 34.6% in 4Q2022. Over the same period, the
bakery segment recorded a 19.5% y-o-y increase in gross profit to EGP 346.4
mil-lion, with a contracted gross profit margin of 28.8% versus the 34.2%
recorded in the same quarter last year. The wafer segment reported a gross
profit of EGP 100.4 million, marking a solid 40.3% y-o-y growth in 4Q2023
while maintain-ing a relatively stable gross profit margin of 33.9% for the
quarter compared to 4Q2022. In the rusks segment, gross profit grew by 28.5%
y-o-y to reach EGP 46.3 million in 4Q2023, with a slightly lower GPM of 28.4%
compared to 29.2% in 4Q2022. The strong revenue performance in the candy
segment was reflected in gross profit, which saw an impressive 227.4% y-o-y
growth to EGP 32.3 million, with an expanded GPM of 31.2%, compared to 20.0%
in this quarter of the previ-ous year. As for the biscuit segment, gross
profit was EGP 4.6 million in 4Q2023, a significant improvement from the 0.4
million loss in 4Q2022, marking an expan-sion in GPM to 20.8%, compared to
-5.6% in 4Q2022.

 

 

 

 

 

Revenue and Gross Profitability by Segment

 EGP mn               4Q2023   4Q2022   Change    FY2023    FY2022   Change
 Cakes
 Revenue              1,568.3  1,281.3  22.4%     6,032.5   3,789.0  59.2%
 Gross Profit         572.4    443.9    28.9%     2,122.4   1,291.2  64.4%
 Gross Profit Margin  36.5%    34.6%    1.9pts    35.2%     34.1%    1.1pts
 Bakery
 Revenue              1,204.6  847.1    42.2%     4,066.6   2,524.8  61.1%
 Gross Profit         346.4    289.9    19.5%     1,211.0   906.4    33.6%
 Gross Profit Margin  28.8%    34.2%    -5.4pts   29.8%     35.9%    -6.1pts
 Wafers
 Revenue              296.5    215.4    37.7%     1,079.0   742.9    45.2%
 Gross Profit         100.4    71.6     40.3%     350.2     249.5    40.4%
 Gross Profit Margin  33.9%    33.2%    0.7pts    32.5%     33.6%    -1.1pts
 Rusks
 Revenue              162.7    123.5    31.7%     545.0     399.5    36.4%
 Gross Profit         46.3     36.0     28.5%     153.3     117.7    30.2%
 Gross Profit Margin  28.4%    29.2%    -0.8pts   28.1%     29.5%    -1.4pts
 Candy
 Revenue              103.5    49.3     110.1%    307.7     176.0    74.8%
 Gross Profit         32.3     9.9      227.4%    86.6      36.6     136.5%
 Gross Profit Margin  31.2%    20.0%    11.2pts   28.1%     20.8%    7.3pts
 Biscuits
 Revenue              22.0     6.8      224.3%    80.1      39.0     105.7%
 Gross Profit         4.6      (0.4)    -1310.4%  14.6      6.4      127.3%
 Gross Profit Margin  20.8%    -5.6%    26.4pts   18.3%     16.5%    1.8pts
 Frozen
 Revenue              14.4     -        -         14.9      -        -
 Gross Profit         (4.3)    -        -         (12.9)    -        -
 Gross Profit Margin  -29.7%   -        -         -86.3%    -        -
 Total Revenues*      3,372.0  2,523.4  33.6%     12,126.0  7,671.1  58.1%
 Total Gross Profit*  1,098.0  850.9    29.0%     3,925.3   2,607.8  50.5%
 Total GPM            32.6%    33.7%    -1.1pts   32.4%     34.0%    -1.6pts

*Includes contributions from Edita's imports segment

 

 

 

 

 

Segment Volumes and Prices

 EGP                   4Q2023  4Q2022  Change  FY2023  FY2022  Change
 Cakes
 Packs (mn)            583     694     -16.0%  2,438   2,226   9.5%
 Tons (000s)           16.2    19.7    -17.6%  67.6    64.8    4.4%
 Av. Price (EGP)       2.69    1.85    45.7%   2.47    1.70    45.4%
 Bakery
 Packs (mn)            256     244     5.2%    910     754     20.8%
 Tons (000s)           13.4    14.1    -5.1%   48.0    44.2    8.5%
 Av. Price (EGP)       4.70    3.48    35.2%   4.47    3.35    33.4%
 Wafers
 Packs (mn)            107     96      11.9%   415     354     17.1%
 Tons (000s)           2.3     2.1     7.2%    8.7     8.2     7.0%
 Av. Price (EGP)       2.76    2.24    23.0%   2.60    2.10    24.1%
 Rusks
 Packs (mn)            37      41      -9.5%   145     151     -4.3%
 Tons (000s)           1.6     1.7     -9.5%   5.6     6.3     -11.3%
 Av. Price (EGP)       4.35    2.99    45.6%   3.77    2.64    42.6%
 Candy
 Packs (mn)            19      10      91.5%   61      35      72.8%
 Tons (000s)           1.1     0.8     41.2%   3.5     3.0     18.7%
 Av. Price (EGP)       5.37    4.90    9.7%    5.02    4.96    1.2%
 Biscuits
 Packs (mn)            5       3       95.3%   23      16      45.3%
 Tons (000s)           0.2     0.1     55.2%   0.8     0.6     26.8%
 Av. Price (EGP)       4.05    2.44    66.1%   3.43    2.42    41.6%
 Frozen
 Packs (mn)            0.4     -       -       0.4     -       -
 Tons (000s)           0.1     -       -       0.1     -       -
 Av. Price (EGP)       34.37   -       -       35.54   -       -
 Total Packs* (mn)     1,010   1,088   -7.2%   3,993   3,537   12.9%
 Total Tons* (000s)    34.8    38.5    -9.7%   134.4   127.1   5.7%
 Av. Price/Pack (EGP)  3.34    2.32    44.0%   3.04    2.17    40.0%

*Includes contributions from Edita's imports segment

 

 

 

 

Balance Sheet

The company's total loans and borrowings as at 31 December 2023 stood at EGP
2,030.5 million, up from EGP 1,496.9 million as at 31 December 2022, due to
Edita's signing of two loans from NBK in the third quarter of 2023. Total bank
overdrafts recorded EGP 596.7 million at the end of 2023 versus EGP 501.7
million recorded at the end of 2022. Cash balance stood at EGP 1,356.3 million
as at 31 December 2023, down from EGP 1,389.0 million at year-end 2022. Edita
recorded a net debt of EGP 674.2 million as at 31 December 2023 compared to
EGP 107.8 million in net debt as at 31 December 2022.

 

Edita booked inventories of EGP 1,867.0 million as at 31 December 2023, up
from EGP 981.5 million as at year-end 2022. Meanwhile, trade and notes
receivable stood at EGP 160.0 million as at 31 December 2023, up from EGP
141.9 million as at 31 December 2022.

 

Total CAPEX for the full-year period ended 31 December 2023 amounted to EGP
596.0 million, with machinery accounting for the majority of the expenditure,
followed by maintenance costs, IT expenses, and production facility expenses.

 

Egyptian Accounting Standards Reconciliation to IFRS

Edita's EAS and IFRS financial statements differ in the treatment of
employees' profit share, which is expensed under the IFRS, while the EAS
accounts for them as a distribution and are thus not included on the income
statement. Also, EAS and IFRS differ in the calculation of EBITDA. In FY2023,
EGP 44.1 million in FX gain and EGP 4.8 million related to gains on the sale
of fixed assets were deducted from EBITDA. Moreover, a profit share deduction
of EGP 108.7 million was made, bringing total EAS to IFRS adjustments on
EBITDA to EGP 157.4 million. A reconciliation between Edita's financial
statements in EAS with the IFRS-based financial statements for FY2023 is
provided in the table below.

 in EGP mn*         FY2023 EAS                   Adjustment  FY2023 IFRS
 Net Sales                             12,126.0              12,126.0
 COGS (excluding MOH)                  6,979.5               6,979.5
 MOH                                   999.9     (49.5)      1,049.4
 Total                                 8,153.1               8,202.5
 Gross Profit                          3,974.7   49.4        3,925.3
 Selling & Distribution Exp.           569.1     (33.0)      602.1
 Advertising & Marketing Exp.          458.0                 458.0
 General & Admin. Exp.                 702.6     (26.2)      728.8
 Other Operational Exp.                116.1     1.5         114.6
 Profit from Operations                2,128.9   107.0       2,021.9
 Profit from Operations Margin         17.6%                 16.7%
 Lease Finance Interest                16.1                  16.2
 Profit Before Income Tax              2,157.6               2,050.6
 Income Tax Expense                    544.0                 544.0
 Net Profit After Tax                  1,613.5   106.9       1,506.6
 EBITDA                                2,523.1   157.4       2,365.7
 EBITDA Margin                         20.8%                 19.5%

*Figures are based on management accounts for better disclosure on expenses
breakdown

 

 

-Ends-

 

 

 

About Edita Food Industries

Edita, founded in 1996 and headquartered in Egypt, is a leader in the growing
Egyptian packaged snack food market. The Company manufactures, markets, and
distributes a range of branded baked snack products including packaged cakes,
bakery, rusks (baked wheat), wafers and biscuits as well as selected
confectionary/candy products. The Company's local brand portfolio includes
household names such as TODO, Molto, Bake Rolz, Bake Stix, Freska, Oniro and
MiMix. The Company also has the exclusive ownership of the international
Hostess brands Twinkies, HOHO's and Tiger Tail in Egypt, Libya, Jordan,
Palestine, Morocco, Algeria, Tunisia, Syria, Lebanon, Iraq, Bahrain, Oman, the
UAE, Kuwait, Qatar, and Saudi Arabia; and is party to a technical assistance
and know-how agreement to manufacture 11 additional Hostess brands across its
territories. The Company holds strong number-one market positions in its core
cake and bakery segments as well as in rusks, a leading market position in
candy and a growing market position in the wafers segment. In FY2023, the
Company derived 90.7% of its revenue from Egypt and 9.3% from regional export
markets. Learn more at ir.edita.com.eg.

 

Contacts

Ms. Menna Shams El Din

Head of Investor Relations & Corporate Affairs

T: +202 3851-6464 | M: +2010 0 154 2428 | menna.shamseldin@edita.com.eg
(mailto:menna.shamseldin@edita.com.eg)

 

Forward-Looking Statements

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occurrence or non-occurrence of an assumption could cause the Company's actual
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The Company's business is subject to a number of risks and uncertainties that
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that arise in relation to the content of this communication.

 

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