Egyptian snack maker Edita has recorded a 32% increase in year-on-year sales growth to EGP 832 million ($47.2 million) in its third quarter results, with net income was also up 47% year-on-year.
The company’s ‘strong’ revenue growth is believed to have come from the fact that consumers have now adjusted to the recent inflationary pressures and are increasingly accepting of Edita’s portfolio optimisation. The firm has also said that the results reflect the turnaround in the macroeconomic environment and mark an important recovery from the multifaceted impact of the Egyptian government’s structural reform program.
Edita chairman and managing director Eng. Hani Berzi said: “Our success in navigating the challenging environment during the past year is thanks to Edita’s responsive strategy and our defensive business model. We were particularly successful in absorbing inflationary shocks arising from the reform program and delivering consistent top-line growth while defending our market share.
“With the economy and consumer sentiment now turning the corner, we believe the worst is behind and we have remerged with better visibility and a restructured product portfolio that targets optimum price-point segmentation.
“Since the rollout of Edita’s repricing strategy in September 2015, the company has successfully structured its portfolio in a manner that now sees it extract higher-value through innovation and simultaneously serve a consumer base that spans a wide income spectrum.
“With the recent recovery in volumes, and as sales continue to grow across all our segments, we are increasingly confident in the merits of our strategic choices. The strength of our strategy and brand equity is also reflected in Edita’s ability to defend and grow its market share.”
The company said it is exploring multiple avenues for regional expansion, particularly into fast-growing, emerging markets with large consumer bases and significant growth potential.
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