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 

Highlights of FY2021

Summary Income Statement (EGP mn)

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

This communication contains certain forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, and can be identified by the use of such words and phrases as "according to estimates", "aims", "anticipates", "assumes", "believes", "could", "estimates", "expects", "forecasts", "intends", "is of the opinion", "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.