Edita, a leading Egyptian packaged snack food company, achieved 9.3% year-over-year (y-o-y) revenue growth to record EGP 862.8m in the second quarter (Q2) of 2019, while the gross profit margin expanded 5.2% points to 33.5% y-o-y while net profits increased 26.3% y-o-y to EGP 31.7m, the company revealed on Tuesday.
The revenue growth was backed by Edita’s core cake and croissant segments which saw their revenue grow 3.1% y-o-y and 7.6% y-o-y, respectively in Q2 of 2019. Edita’s cake segment continued to contribute the largest share of total sales at 45.0%, while the croissant segment made up 32.1% of total sales
Furthermore, Edita’s wafer segment recorded a 39.2% y-o-y increase in revenue in Q2 of 2019, with its contribution to total revenue increasing to 8.8% from 6.9% in Q2 of last year. The company’s rusks segments grew 42.3% y-o-y in Q2 of 2019 and made up 9.7% of total sales, compared to the 7.4% contribution in the same quarter of 2018.
Meanwhile, the company reported a 10.1% y-o-y top-line expansion to EGP 1.845bn, and EGP 146m net profit in the first half of (H1) 2019, a 69.9% y-o-y increase.
Edita Chairperson and Managing Director, Hani Berzi said: “Edita’s growth in the Q2 and H1 of 2019 continued to be a factor of our constantly improving product mix. An expanding top-line combined with company-wide cost control efforts are helping reaffirm the company’s improved profitability, with GPM climbing 5.2% points to 33.5% and our bottom-line delivering double-digit growth.”
He added that on the regional front, the company took several steps to strengthen their foothold in the newly penetrated Moroccan market. Notably, Edita Morocco has signed a long-term lease agreement for a plot of land, and construction is set to begin during H2 of 2019.