REG - Edita Food Ind SAE - 1st Quarter Results

Edita Food Industries SAEAnnouncement

27/05/2025 07:00

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RNS Number : 0886K  Edita Food Industries S.A.E.  26 May 2025

Cairo, 26 May 2025

Edita Food Industries Reports 1Q2025 Earnings

Edita achieves 9.1% year-on-year revenue growth, reaching EGP 4.3 billion in
1Q2025, underscoring the effectiveness of its agile business model and pricing
strategy in navigating a challenging macroeconomic environment.

 

Highlights of 1Q2025

Summary Income Statement (EGP mn)

 EGP mn        1Q2025   1Q2024   Change
 Revenue       4,283.4  3,927.5  9.1%
 Gross Profit  1,353.3  1,201.6  12.6%
 % Margin      31.6%    30.6%
 EBITDA        694.8    673.2    3.2%
 % Margin      16.2%    17.1%
 Net Profit    381.0    436.4    -12.7%
 % Margin      8.9%     11.1%

 The discussion and analysis in this report are based on the IFRS statements.

 

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 quarter ended 31 March 2025.
Consolidated revenues grew 9.1% y-o-y to EGP 4.3 billion, driven by strategic
pricing initiatives post introducing new products at higher price points
following the March 2024 devaluation. Gross profit reached EGP 1.4 billion, up
12.6% y-o-y, with gross profit margin expanding to 31.6%. EBITDA rose 3.2%
y-o-y to EGP 694.8 million, yielding an EBITDA margin of 16.2%. Meanwhile, net
profit declined 12.7% y-o-y to EGP 381.0 million, with an associated margin of
8.9%, reflecting increased interest expenses due to elevated interest rates.
In line with its mitigation strategy, Edita continued to witness notable
quarter-on-quarter margin recovery, with profitability improving at all levels
compared to the previous quarter.

 

Edita's ability to consistently adapt to changing macroeconomic conditions and
drive top-line growth continues to highlight the effectiveness of its growth
strategies,  and ability to adapt to changing market and consumer dynamics.
Its price point migration strategy has remained a key growth enabler over the
period, ensuring that the company continues to drive sustainable growth while
offering incremental value to consumers. As such, revenue grew 9.1% y-o-y in
1Q2025, driven by a 44.6% y-o-y increase in the average price per pack to EGP
5.06. Average price per ton increased 32.7% y-o-y in 1Q 2025. This more than
offset a 24.6% decline in total packs sold, which recorded 847 million for the
quarter. It is important to note that the year-on-year decline in volumes
partially captures a high base effect from last year's first quarter where
volumes still reflected pre-March 2024 devaluation. While overall volumes
declined year-on-year, Edita reported impressive volume growth of 144.2% at
its biscuits segment, supported by the company's efforts to expand its
production capacity as part of its recent toll manufacturing agreement.
Compared to 4Q2024, revenue growth was driven by increasing sales volumes in
the wafers segment which grew 23.6% q-o-q, and further supported by volume
growth in nascent segments, including candy, biscuits and frozen.

 

In 1Q2025, Edita's gross profit rose 12.6% y-o-y to EGP 1.4 billion, yielding
a gross margin of 31.6%, up from 30.6% in 1Q2024, reflecting Edita's continued
focus on value-driven growth and operational efficiency. During the quarter,
COGS grew marginally by 3.6% y-o-y to EGP 2.4 billion, in line with higher
sales revenue. However, as a percentage of revenue, COGS stood at 56.2% in
1Q2025, signficantly improving from 59.2% in the previous year, highlighting
increased efficiencies and cost savings.

 

Total SG&A expenses rose to EGP 723.9 million in 1Q2025, up 26.0% y-o-y,
reflecting a 19.7% increase in selling and distribution expenses as well as a
52.1% y-o-y increase in general and administrative expenses, driven by the
company's ongoing expansion efforts to enhance market reach. Meanwhile,
advertising and marketing expenses decreased 6.6% y-o-y, reflecting optimized
marketing spending.  As a result, SG&A as a percentage of sales increased
to 16.9% compared to 14.6% in 1Q2024.

 

 

EBITDA for the three-month period reached EGP 694.8 million, up 3.2% y-o-y,
with an associated margin of 16.2% slightly down from 17.1% in 1Q2024.

 

In 1Q2025, net profit stood at EGP 381.0 million, down 12.7% y-o-y, with a net
profit margin of 8.9% compared to 11.1% in 1Q2024. The decline partially
reflects the impact of the March 2024 devaluation, as the comparable period
reflects pre-devaluation levels, translating into rising costs and increasing
interest expenses during the quarter. Net profitability witnessed significant
quarter-on-quarter improvement with net profit margin expanding to 8.9% in
1Q2025, up from 7.3% in the previous quarter, reflecting favorable cost
dynamics on the back of the cooling inflationary environment witnessed
throughout the beginning of the year.

 

Net export sales reached EGP 317.5 million in 1Q2025, marking a 19.5% y-o-y
increase. On the regional front, Edita Morocco recorded EGP 127.4 million in
revenues for 1Q2025, up 57.9% y-o-y, fueled by restructuring initiatives in
its distribution models aimed at improving efficiency and expanding market
reach.

 

 

Operational Developments

In 1Q2025, Edita continued to execute its price point migration strategy
through portfolio innovation and expansion. In January 2025, Edita broadened
its price spectrum within the HOHOs brand by introducing the Family Roll at
EGP 35, targeting the family segment seeking larger, shareable portions. At
the same time, HOHOs King entered the EGP 10 price tier, reinforcing Edita's
value-driven growth strategy. Edita also introduced higher price points across
its bakery segment. In January, the company launched Molto King at EGP 20, the
largest single-piece offering in the Molto range, while expanding its EGP 10
price point range to include Molto Mix alongside the Molto XXL products. In
March 2025, Edita launched Twinkies Duo at EGP 10, introducing an innovative
dual-flavor concept. Meanwhile, Twinkies Cream entered the EGP 10 price tier
in February 2025. These initiatives underscore Edita's commitment to portfolio
innovation and strategic pricing. In March 2025, new limited-time flavors of
Bake Rolls were launched at EGP 15, and Bake Sticks at EGP 10, providing
consumers with innovative flavors matching changing taste profiles. To support
these rollouts, Edita continues to invest in upgrading its production
capabilities and strengthening its distribution network, effectively
positioning its product portfolio for sustained growth.

 

Additionally, Edita Trade & Distribution entered its first third-party
distribution agreement, leveraging its extensive network to drive growth in
high-potential snack segments. This move aligns with Edita's strategy to
optimize its distribution channels and expand across high-growth platforms,
including e-commerce. Notably, e-commerce volumes grew by 68% y-o-y in 1Q2025,
led by significant volume increases across all segments, highlighting Edita's
ability to better serve emerging consumer segments while enhancing overall
market reach.

 

On the industrial operations front, Edita installed a new bakery line in 2024,
which was fully ramped up by the end of 1Q 2025, boosting production capacity
and supporting expansion plans

 

Overview of Segment Performance

In 1Q2025, Edita delivered solid financial performance, with consolidated
revenue reaching EGP 4.3 billion, marking a 9.1% y-o-y increase. Cakes
continued to serve as the largest revenue contributor, generating EGP 2.3
billion in revenue, up 14.3% y-o-y, supported by a 53.3% increase in the
average price per pack, which offset a 25.4% decline in volumes. Meanwhile,
the bakery segment recorded an 11.4% y-o-y revenue decline, reaching EGP 937.2
million in 1Q2025, primarily driven by a 39.0% decrease in sales volumes,
despite a 45.3% rise in average price per pack. The wafer segment grew 11.8%
y-o-y reaching EGP 551.2 million in 1Q2025, fueled by a 38.6% increase in the
average price per pack, offsetting a 19.3% decline in sales volumes. In the
rusks segment, revenue expanded by 13.3% y-o-y to EGP 187.3 million, supported
by a 53.5% increase in the average price per pack, despite a 26.2% decline in
volumes. Edita's nascent segments-candy, biscuits and frozen- continue to
demonstrate promising potential, particularly the biscuit segment which grew
four-folds year-on-year to EGP 128.0 million, supported by an impressive
144.2% surge in volumes, as well as a 33.0% increase in average price per
pack. Meanwhile, the candy segment saw its top-line decline year-on-year by a
6.2% to EGP 128.2 million, as both average price per pack and sales volumes
marginally declined 2.4% y-o-y and 3.9% y-o-y, respectively. The frozen
segment recorded EGP 18.7 million in revenue during 1Q2025, posting a 103.0%
increase in average price per pack and a 59.8% decline in sales volumes.
During the period, Edita generated an additional EGP 31.7 million in revenue,
driven by its recent third-party distribution agreement.

 

Gross Profit Margin by Product Segment

Edita's consolidated gross profit grew 12.6% y-o-y to EGP 1.4 billion in
1Q2025, reflecting gross profit growth across most segments. Meanwhile, GPM
expanded to 31.6% from 30.6% in 1Q2024, driven by solid top-line growth,
coupled with effective pricing strategies and enhanced operational
efficiencies to mitigate cost pressures.

 

Breaking down the segments, cake remained the largest contributor, recording a
9.9% y-o-y growth in gross profit to EGP 782.6 million in 1Q2025, with a gross
profit margin (GPM) of 34.0% compared to 35.4% in 1Q2024. Meanwhile, the
bakery segment recorded a 16.9%y-o-y increase in gross profit to EGP 285.0
million in 1Q2025, with GPM expanding to 30.4% from 23.0% in 1Q2024. The
wafers segment achieved a 3.2% y-o-y increase in gross profit, reaching EGP
164.9 million, with a GPM of 29.9% versus 32.4% in 1Q2024. Similarly, the
rusks segment recorded a 30.8% y-o-y expansion in gross profit, with an
associated GPM of 26.5%, up from 22.9% in the prior year. Meanwhile, gross
profit in the candy segment dropped 10.7% y-o-y to EGP 35.8 million, with GPM
also inching down to 27.9% versus 29.3% in the corresponding period last year.
At the biscuits segment, gross profit more than tripled, surging 329.1% y-o-y
to EGP 39.3 million, with an improved GPM of 30.7% compared to 23.2% in
1Q2024. The frozen segment reported a EGP 9.5 million loss in gross profit in
1Q2025.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue and Gross Profitability by Segment

 EGP mn               1Q2025   1Q2024   Change
 Cakes
 Revenue              2,301.1  2,012.5  14.3%
 Gross Profit         782.6    712.3    9.9%
 Gross Profit Margin  34.0%    35.4%    -1.4pts
 Bakery
 Revenue              937.2    1,057.7  -11.4%
 Gross Profit         285.0    243.8    16.9%
 Gross Profit Margin  30.4%    23.0%    7.4pts
 Wafers
 Revenue              551.2    492.9    11.8%
 Gross Profit         164.9    159.7    3.2%
 Gross Profit Margin  29.9%    32.4%    -2.5pts
 Rusks
 Revenue              187.3    165.4    13.3%
 Gross Profit         49.6     37.9     30.8%
 Gross Profit Margin  26.5%    22.9%    3.5pts
 Candy
 Revenue              128.2    136.7    -6.2%
 Gross Profit         35.8     40.0     -10.7%
 Gross Profit Margin  27.9%    29.3%    -1.4pts
 Biscuits
 Revenue              128.0    39.4     224.8%
 Gross Profit         39.3     9.1      329.1%
 Gross Profit Margin  30.7%    23.2%    7.5pts
 Frozen
 Revenue              18.7     22.9     -18.5%
 Gross Profit         (9.5)    (1.3)    (634.3%)
 Gross Profit Margin  -51.1%   -5.7%    -45.4pts
 Total Revenues*      4,283.4  3,927.5  9.1%
 Total Gross Profit*  1,353.3  1,201.6  12.6%
 Total GPM            31.6%    30.6%    1.0pts

*Includes contributions from Edita's imports segment

 

 

 

Segment Volumes and Prices

 EGP                   1Q2025  1Q2024  Change
 Cakes
 Packs (mn)            514     690     -25.4%
 Tons (000s)           17.0    19.6    -13.2%
 Av. Price (EGP)       4.47    2.92    53.3%
 Bakery
 Packs (mn)            118     194     -39.0%
 Tons (000s)           7.2     11.1    -35.4%
 Av. Price (EGP)       7.94    5.47    45.3%
 Wafers
 Packs (mn)            140     173     -19.3%
 Tons (000s)           3.2     3.7     -12.9%
 Av. Price (EGP)       3.95    2.85    38.6%
 Rusks
 Packs (mn)            25      34      -26.2%
 Tons (000s)           1.4     1.4     -6.7%
 Av. Price (EGP)       7.51    4.89    53.5%
 Candy
 Packs (mn)            22      23      -3.9%
 Tons (000s)           1.0     1.1     -12.9%
 Av. Price (EGP)       5.86    6.01    -2.4%
 Biscuits
 Packs (mn)            24      10      144.2%
 Tons (000s)           0.9     0.3     205.6%
 Av. Price (EGP)       5.24    3.94    33.0%
 Frozen
 Packs (mn)            0.2     0.6     -59.8%
 Tons (000s)           0.1     0.2     -40.3%
 Av. Price (EGP)       78.23   38.54   103.0%
 Total Packs* (mn)     847     1,123   -24.6%
 Total Tons* (000s)    30.7    37.4    -17.8%
 Av. Price/Pack (EGP)  5.06    3.50    44.6%

*Includes contributions from Edita's imports segment

 

 

 

 

 

 

 

 

Balance Sheet

The company's total loans and borrowings as at 31 March 2025 stood at EGP
3,643.5 million, up from EGP 3,468.2 million as at 31 December 2024. Total
bank overdrafts recorded EGP 452.5 million as at 31 March 2025 versus EGP
808.4 recorded at the end of 2024. Cash balance stood at EGP 2,797.1 million
as at 31 March 2025 up from EGP 1,324.2 million as at year-end 2024. Edita
recorded a net debt of EGP 846.4 million as at 31 March 2025 compared to EGP
2,144.0 million in net debt as at 31 December 2024.

 

Edita booked inventories of EGP 2,248.4 million as at 31 March 2025, down from
3,034.0 million as at 31 December 2024. Meanwhile, trade and notes receivable
stood at EGP EGP 144.3 million as at 31 March 2025, compared to EGP 174.8
million as at 31 December 2024.

 

Total CAPEX for the period ending 31 March 2025 amounted to EGP 211.5 million,
primarily allocated to expansion-related investments, with additional
expenditures for maintenance and distribution vehicles.

 

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 1Q2025,
EGP 15.8 million in FX gains as well as an FA gain and profit share deduction
amounting to EGP 51.6 million were subtracted from EBITDA, bringing total EAS
to IFRS adjustments on EBITDA to EGP 67.4 million. A reconciliation between
Edita's financial statements in EAS with the IFRS-based financial statements
for 1Q2025 is provided in the table below.

 in EGP mn*         1Q2025 EAS                  Adjustments  1Q2025 IFRS
 Net Sales                             4,283.4               4,283.4
 COGS (excluding MOH)                  2,408.3  0.0          2,408.3
 MOH                                   421.5    (18.9)       440.3
 Total                                 2,829.8               2,848.6
 Gross Profit                          1,371.8  18.5         1,353.3
 Selling & Distribution Exp.           227.5    (12.8)       240.3
 Advertising & Marketing Exp.          135.6                 135.6
 General & Admin. Exp.                 330.3    (17.7)       348.1
 Other Operational Exp.                47.7     0.4          47.3
 Profit from Operations                630.7    48.7         582.0
 Profit from Operations Margin         14.7%                 13.6%
 Lease Finance Interest                2.1                   2.1
 Profit Before Income Tax              572.4    48.8         523.6
 Income Tax Expense                    142.6                 142.6
 Net Profit After Tax                  429.8    48.8         381.0
 EBITDA                                762.2    67.4         694.8
 EBITDA Margin                         17.8%                 16.2%

*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 1Q2025, the
Company derived 92.6% of its revenue from Egypt and 7.4% from regional export
markets. Learn more at ir.edita.com.eg.

Contacts

Ms. Menna Shams El Din

Chief Investment Officer & 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

This communication contains certain forward-looking statements. A
forward-looking statement is any statement that does not relate to historical
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"may", "plans", "potential", "predicts", "projects", "should", "to the
knowledge of", "will", "would" or, in each case their negatives or other
similar expressions, which are intended to identify a statement as
forward-looking. This applies, in particular, to statements containing
information on future financial results, plans, or expectations regarding
business and management, future growth or profitability and general economic
and regulatory conditions and other matters affecting the Company.

Forward-looking statements reflect the current views of the Company's
management ("Management") on future events, which are based on the assumptions
of the Management and involve known and unknown risks, uncertainties and other
factors that may cause the Company's actual results, performance, or
achievements to be materially different from any future results, performance
or achievements expressed or implied by these forward-looking statements. The
occurrence or non-occurrence of an assumption could cause the Company's actual
financial condition and results of operations to differ materially from, or
fail to meet expectations expressed or implied by, such forward-looking
statements.

The Company's business is subject to a number of risks and uncertainties that
could also cause a forward-looking statement, estimate or prediction to differ
materially from those expressed or implied by the forward-looking statements
contained in this prospectus. The information, opinions and forward-looking
statements contained in this communication speak only as at its date and are
subject to change without notice. The Company does not undertake any
obligation to review, update, confirm or to release publicly any revisions to
any forward-looking statements to reflect events that occur or circumstances
that arise in relation to the content of this communication.

 

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