REG - Edita Food Ind SAE - Edita's FY2021 audited financial statements (IFRS)

Edita Food Industries SAEAnnouncement

27/06/2022 07:01

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RNS Number : 2017Q  Edita Food Industries S.A.E.  27 June 2022

Edita Food Industries Reports FY2021 Earnings

Edita recorded strong full year results with revenues reaching EGP 5.3
billion, up 30.6% y-o-y with enhanced bottom-line profitability which grew by
a strong 54.7% y-o-y to EGP 471.9 million. Full-year results were supported by
Edita's successful repricing strategies and resilient volumes in 4Q

http://www.rns-pdf.londonstockexchange.com/rns/2017Q_1-2022-6-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2017Q_1-2022-6-24.pdf)

Highlights of FY2021

Summary Income Statement (EGP mn)

 EGP mn        FY2021     FY2020   Change
 Revenue       5,251.2    4,021.1  30.6%
 Gross Profit   1,673.4   1,388.1  20.5%
 % Margin      31.9%      34.5%
 EBITDA         841.3     656.8    28.1%
 % Margin      16.0%      16.3%
 Net Profit    471.9      305.0    54.7%
 % Margin      9.0%       7.6%

 

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 2021,
recording revenues of EGP 5,251.2 million, a 30.6% y-o-y increase. Net profit
recorded EGP 471.9 million in FY2021, up an impressive 54.7% compared to last
year, with a net profit margin of 9.0%.

 

Edita's full-year results were supported by an especially strong performance
in the last quarter of year. In 4Q2021, Edita recorded revenues of EGP 1,538.7
million, up 25.2% y-o-y, demonstrating a strong recovery from the challenges
presented by Covid-19. Net profit for the quarter grew by a strong 51.5% y-o-y
to EGP 194.2 million, with an associated net profit margin expansion to 12.6%
compared to 10.4% in the fourth quarter of the previous year.

 

Edita's FY2021 revenues crossed the EGP 5 billion mark driven by both volumes
and prices, which shows the company's resilience and agility in adapting its
business model to face the challenges posed by Covid-19, supply chain
disruptions and global inflationary pressures on raw material prices. The
company's top-line was supported by a 12.1% increase in average price per pack
to EGP 1.81 for FY2021 driven by portfolio optimization, direct and indirect
price increases across all segments and higher price-point introductions to
ease the pressure on profitability margins. Despite the accelerated migration
to higher price-points, volumes rebounded to pre-devaluation levels
demonstrating strong demand inelasticity accentuated by Edita's leading market
position. In FY2021, total packs sold increased by 16.6% y-o-y to 2,897.3
million, with cakes, bakery and wafers being the biggest contributing
segments. In 4Q2021, volumes were up 12.8% compared to last year's figure with
particular increases across the rusks, cakes and wafers segments, which grew
65.3% and 22% y-o-y, respectively during the quarter. Average price per pack
in the fourth quarter reached EGP 1.91, up 11.2% y-o-y, driven by aggressive
price increases during 4Q2021 mainly on bakery and cake products.

 

In FY2021, Edita's gross profit recorded EGP 1,673.4 million, up 20.5% y-o-y,
with a gross profit margin of 31.9% versus the 34.5% recorded last year. Edita
was able to sustain its gross profitability despite the 44.6% y-o-y increase
in direct material costs brought about by surges in raw material costs and
supply chain disruptions that are driving global commodity prices to record
highs. While Edita was successful in passing on a portion of these increases
to consumers through direct and indirect price increases, the company also
offset the increase by managing its manufacturing overheads (MOH) for the
year, which declined to 11.8% as a percentage of sales compared to 14.1% in
the previous year. In 4Q2021, strong top-line results supported a 16.6% y-o-y
increase in gross profit to EGP 520.9 million, with a recovered gross profit
margin of 33.9% supported by aggressive price increases.

 

 

In FY2021, Edita recorded gross export sales of EGP 309.9 million, up by a
strong 23.4% y-o-y and contributing 5.9% to total revenues during the year
compared to 6.2% in FY2020. In 4Q2021, gross export sales stood at EGP 115.3
million, which accounted for 7.4% of total gross sales compared to 5.5% in
4Q2020.

 

Net profit for the year increased an impressive 54.7% y-o-y to EGP 471.9
million, with a net profit margin of 9.0% versus 7.6% for FY2020, primarily
driven by increased revenues. In FY2021, Edita also realized a EGP 17.8
million gain on the sale of fixed assets, a EGP 7.1 million FX gain as well as
decreases in interest expenses and provisions. In 4Q2021, net profit grew
51.5% y-o-y to EGP 194.2 million with a net profit margin of 12.6% compared to
10.4% in the previous year.

 

 

 

-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 HTT
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 HTT brands across its
territories. The Company holds strong number-one market positions in its core
cake and bakery segments as well as in candy, a number-two market position in
rusks and a growing market position in the wafers segment. In FY2021, the
Company derived 94.1% of its revenue from Egypt and 5.9% from regional export
markets. Learn more at ir.edita.com.eg

 

Contacts

Ms. Menna Shams El Din

Head of Investor Relations

T: +202 3851-6464 | menna.shamseldin@edita.com.eg

 

Ms. Alia Balbaa

Investor Relations Manager

T: +202 3851-6464 | alia.balbaa@edita.com.eg

 

Forward Looking Statements

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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
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subject to change without notice. The Company does not undertake any
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any forward-looking statements to reflect events that occur or circumstances
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