View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 22, 2021

Edita Food Industries eyes assets of Egyptian peer

The Cairo- and London-listed Edita has revealed talks with Egyptian Belgian Company, the owner of cake and croissant brand Ole.

Edita Food Industries is looking at buying unspecified assets from fellow Egypt-based bakery business Egyptian Belgian Company for Industrial Investments.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The Cairo- and London-listed Edita said today (22 November) the two companies had signed a “non-binding letter of intent” over a possible deal.

In a stock-exchange filing, Edita said the tentative agreement covers “the acquisition by Edita or any of its designated affiliates or subsidiaries to assets owned by the Egyptian Belgian Company, including real estate assets such as lands and buildings, as well as machinery, equipment, and production lines”.

Edita expects to complete due diligence by 15 December. Based on how the due diligence goes, the company plans to prepare “an initial draft of the sale and purchase agreement” within a month.

Just Food has approached Edita for further comment, including on which Egyptian Belgian Company assets it may acquire and why.

At the time of writing, the company had not responded to requests for comment.

Egyptian Belgian Company is the owner of cake, croissants and doughnuts brand Ole.

Edita manufactures branded baked snacks including cakes, wafers and biscuits under brands such as Todo, Molto and Bake Rolz. More than 90% of its revenue is generated in Egypt.

In the first nine months of the year, Edita’s revenue increased 33% to EGP3.71bn (US$236m). The company’s net profit was up 57.8% at EGP276.2m. Its gross margin stood at 30.9%, down from 33.7% a year earlier, amid higher raw material and energy costs.

Last month, Edita set out plans to increase prices on products sold under its flagship brand Molto. The company said the hikes would improve profits amid “global inflationary pressures and rising commodity prices”.

In 2020, the company generated revenue of EGP4.02bn, flat on a year earlier. More than 42% of its revenue came from packaged cakes. Net profit was EGP302.2m, down 16.6% on 2019.

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food