Edita Food Industries, the Egypt-based bakery and snacks group, today (10 November) booked a 47.2% fall in third-quarter net profit, which it blamed on higher FX losses, increased provisions and higher interest expenses.
Net profit after tax and minority interest (NPAT) was EGP45.2m (US$2.7m) with a net margin of 7.4% compared to 16% in the third quarter of 2015.
However, Edita reported third-quarter revenues of EGP613m, which it said represented a “solid increase” of 14.5% year-on-year compared to EGP535.4m in the same period last year.
The group said contributors to revenues “continued to be weighed towards the cake and croissant segments at 49.6% and 37.2% respectively, compared to 54.3% and 35.4% in the third quarter of 2015”.
On a nine-month basis, Edita posted revenues of EGP1.68bn, an increase of 6.5% year-on-year compared to EGP1.57bn for the first nine months of 2015.
EBITDA increased 19.7% for the third quarter of the year to EGP130.8m, with EBITDA margin rising to 21.3% compared to 20.4% in the third quarter of last year. The company said this was due in part to lower advertising expenses, standing at EGP5.2m versus EGP24.7m in the third quarter of last year, “as the company incurred the bulk of its 2016 budget for marketing expenses in the first half of 2016”.
“Overall, operating profit recorded a marked improvement to stand at EGP103.8m in the third quarter of the year, which was an 18.4% year-on-year increase,” Edita said.
Edita chairman and MD Hani Berzi said: “Our outlook for the future remains fundamentally positive especially as the snack food market continues to grow. We will remain diligent in assessing a rapidly-changing external environment and adapting our pricing across SKUs to optimise our portfolio so as to support profitability while defending market share.”
Berzi said: “Edita will press forward with its investment plans to ensure future capacities needed to capture market growth are installed by the time economic recovery gains traction, while at the same build on grounds gained in regional expansion to diversify revenue streams and increase foreign currency inflows.”