In response to the rising global inflation rates, Edita Food Industries announced an increase in the prices of its Molto products in the bakery sector.
This trend towards increasing the average selling prices is justified by the inflationary pressures prevailing in the global economic scene, as well as the rise in commodity prices on global stock exchanges, which would contribute to enhancing profitability rates, taking advantage of the high demand for “Molto” products.
The company said in a statement to the Egyptian Exchange that it increased the prices of some of its products from EGP 2 to EGP 3, and others from EGP 3 to EGP 4.
The statement indicated that the increase came after Edita announced an increase in production rates in the bakery sector’s production lines, to meet the strong growth in demand for products.
According to the statement, the increase is a complementary step to the company’s purchase of a new bakery production line in June 2021, which is scheduled to be operational by the end of the first quarter of 2022.
It noted that it is looking forward to installing a new production line to increase its production capacities in the bakery sector by 20%.
Edita achieved profits amounting to EGP 196.91m in the six months ending last June, compared to profits amounting to EGP 93.78m in the same period last year.
The company’s sales increased to EGP 2.32bn, compared to EGP 1.73bn in 2020.
Abu Bakr Imam, head of research department at Sigma Capital: “We are currently witnessing a wave of global commodity prices increases. This raises concerns on increase in inflation rates to unprecedented levels, which may lead companies working in various economic sectors to increase the prices of their products during the upcoming period”.
He expected the continued acceleration of global food prices to add more pressure to inflation expectations, given the continuous increase in freight costs.
Analysts’ expectations of investment banks for average inflation rates during the last quarter of this year ranged between 5.5 and 7.5%, despite the risks of global inflationary pressures that may be reflected in some way on prices in Egypt.