Edita Food Industries, the Egypt-based baker, saw profits grow in 2015 on the back of increased sales and moves to launch higher-margin products as the company moved through the year.
The company posted net profit of EGP349.1m (US$44.6m), up 31.3% on 2014. EBITDA was EGP521.9m, an increase of 12.7% on the year.
The group said its EBITDA margin was 23.5% in 2015, down from 24.1% in 2014 but pointed to costs to expand the business during the year. Its EBITDA margins rose year-on-year in the fourth quarter after the launch of more expensive products including Molto Mix and Twinkies Extra. Edita said products sold at higher price points would allow the business to “pre-empt inflationary risks and secure long term, profitable growth”.
Last year, Edita widened its ownership of Hostess Brands LLC’s HoHo’s, Twinkies and Tiger Tail brands to 12 additional Middle Eastern and North African markets. Edita already owned rights to the brands in Egypt, Libya, Jordan and Palestine. The deal gave Edita rights to the brands into new markets including Algeria, Bahrain and Saudi Arabia.
Revenues rose 16% to EGP2.23bn.
The company provided data on the size of Egypt’s snack market. It said the sector saw sales grow over 17% to EGP17.5bn in 2015. Edita said the packaged croissant category was one of the “fastest growing” in the sector, with sales up over 50%. The group accounts for over two-thirds of sales in the category.
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