Cairo, 11 August 2025

Edita Food Industries Reports 2Q2025 Earnings

Edita reports 22.2% year-on-year revenue growth to EGP 5.0 billion in 2Q2025, with bottom-line climbing 72.1% to EGP 539.0 million, driven by portfolio optimization, price point migration, and strong margin recovery.

Highlights of 2Q2025

Summary Income Statement (EGP mn)

 The discussion and analysis in this report are based on the IFRS statements.

Results in a Nutshell

Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange), a leader in the Egyptian packaged snack food market, announced today its results for the quarter and period ended 30 June 2025. Consolidated revenues grew 22.2% y-o-y to reach EGP 5.0 billion in 2Q 2025, driven by continued portfolio optimization efforts underpinned by proactive price migration initiatives across all business segments. Gross profit increased 40.6% y-o-y to EGP 1.6 billion, with gross profit margin expanding to 33.2%, while EBITDA rose 45.8% y-o-y to EGP 902.0 million, yielding an EBITDA margin of 18.2%. Net profit surged 72.1% y-o-y to EGP 539.0 million, with a net margin of 10.9%, supported by strong top-line growth, improved operational profitability on the back of cost efficiencies, as well as higher interest income booked during the quarter. On a quarter-on-quarter basis, Edita witnessed notable improvement across all profitability levels, with the gross, EBITDA, and net margins increasing compared to 1Q2025. The quarter-on-quarter enhancement in profitability was further supported by the recovery in volumes achieved during the quarter.

On a six-months basis, revenues grew 15.7% y-o-y to EGP 9.2 billion, while net profit rose 22.7% y-o-y to EGP 920.0 million, with a margin of 9.9% versus 9.4% in 1H2024

Edita's strong business model and strategic oversight have enabled it to effectively navigate ongoing macroeconomic pressures, primarily through disciplined portfolio rationalization and a well-executed price migration strategy. Building on this foundation, Edita is witnessing a sustained recovery in volumes, with solid quarter-on-quarter growth recorded in 2Q2025, marking an encouraging inflection point in the company's post-devaluation volume performance trajectory. During the second quarter of 2025, revenue grew 22.2% y-o-y to EGP 5.0 billion, driven by a 38.4% y-o-y increase in the average price per pack to EGP 5.48. The average price per ton also increased by 11.0% y-o-y during the quarter. This more than offset an 11.7% decline in total packs sold, which recorded 905 million for the period. It is important to note that volumes continued to witness solid quarter-on-quarter recovery, with total packs sold increasing by 6.9% q-o-q compared to 1Q 2025, indicating sustained improvements. At the segmental level, Edita reported strong year-on-year volume growth across its nascent segments, with candy and biscuits increasing by 35.6% y-o-y and 18.9% y-o-y, respectively during 2Q 2025. Compared to 1Q 2025, Edita's core segments, posted solid quarter-on-quarter volume growth, with bakery and rusks posting notable increases of 47.6% q-o-q and 34.5% q-o-q, respectively.

In 1H2025, the average price per pack increased by 41.9% y-o-y to EGP 5.28, and the average price per ton increased by 21.6% y-o-y, while total packs sold declined 18.4% y-o-y, totaling 1,752 million during the six-month period.

In 2Q2025, Edita's gross profit rose 40.6% y-o-y to EGP 1.6 billion, with the gross margin expanding to 33.2% from 28.8% in 2Q2024, reflecting strong revenue growth, underpinned by successful pricing strategies, coupled with operational efficiency and cost optimization. COGS grew by 12.7% y-o-y to EGP 2.8 billion, reflecting higher raw material prices and increased production and manufacturing overhead (MOH) costs. As a percentage of sales, COGS stood at 56.1% in 2Q2025, down from 60.9% in the same quarter last year. Meanwhile, MOH as a percentage of sales inched up to 9.5%, compared to 9.0% in2Q2024. On a six-months basis, gross profit grew 26.4% y-o-y to EGP 3.0 billion with the gross margin expanding to 32.4%, up from the 29.7% recorded in the first half of 2024.

Total SG&A expenses rose to EGP 819.5 million in 2Q2025, up 32.1% y-o-y, reflecting a 33.7% increase in selling and distribution expenses as well as a 40.3% y-o-y increase in marketing spending, as the company continues to focus on expanding its distribution network, while boosting product visibility and enhancing market reach.  As a result, SG&A as a percentage of sales increased to 16.5% compared to 15.3% in 2Q2024. Year-to-date, SG&A expenses grew 29.2% y-o-y to EGP 1.5 billion, accounting for 16.7% of sales compared to 15.0% in 1H2024.

EBITDA for the three-month period reached EGP 902.0 million, up 45.8% y-o-y, with an associated margin of 18.2%, up from 15.2% in 2Q2024. For the first half, EBITDA rose by 23.6% y-o-y totaling EGP 1.6 billion with a margin of 17.3%, up from 16.2% in 1H2024.

In 2Q2025, net profit surged 72.1% y-o-y to reach to EGP 539.0 million, with the net profit margin expanding to 10.9% compared to 7.7% in 2Q2024. Higher net profitability was driven by strong top-line growth, improved operational profitability on the back of enhanced cost efficiencies, as well as higher interest income booked during the quarter, supported by a favorable interest rate environment. Compared to 1Q2025, net profitability witnessed significant quarter-on-quarter improvement with net profit margin expanding to 10.9 in 2Q2025, up from 8.9% in the previous quarter. On a first-half basis, net profit recorded EGP 920.0 million with a net margin of 9.9% versus 9.4% during the corresponding period last year.

On the regional front, Edita Morocco recorded EGP 153.8 million in revenues for 2Q2025, up 44.3% y-o-y, following the deployment of a dedicated retail sales force, as part of Edita Morocco's efforts to deepen its presence in the local retail market. In local currency terms, the company closed the first half of 2025 with a solid 6% year-on-year increase in sales.

Net export sales recorded EGP 451.0 million in 2Q2025, marking a 47.7% y-o-y increase.

Operational Developments

Throughout the first half of 2025, Edita continued to enhance its portfolio through introducing higher-value propositions and optimizing its product mix toward higher price points.

During the second quarter, Edita expanded its Molto King range, through introducing a new biscuit spread flavor priced at EGP 20. A particular focus was placed on large and family-sized packs across brands, in line with Edita's ongoing efforts to migrate consumers toward higher price tiers. Within the TODO brand, Edita rolled out new biscuit spread flavors, entering the EGP 15 price tier. In the candy segment, the company introduced upsized Fakka 220 packs across Dolce, Bon Bon, and Jellix, all positioned within higher price tiers. Similarly, the Oniro range saw the launch of an upsized Oniro Teabix in June 2025, an 18-piece pack priced at EGP 10.

Edita also continued to strengthen its presence in high-potential segments during the second quarter of the year. In May 2025, Edita Frozen Food Industries ventured into the food service sector, launching a new range of frozen croissants, viennoiseries, and breads tailored for hotels, restaurants, and cafés, strategically targeting the underserved B2B market. The launch is backed by Edita's strong cold-chain infrastructure, ensuring reliable nationwide delivery and meeting the demands of professional kitchens.

In Morocco, Edita made progress in expanding its local operations. The deployment of a dedicated retail sales force has considerably enhanced Edita Morocco's route-to-market capabilities, enabling deeper market penetration and coverage. At the portfolio level, Edita Morocco continued to expand its HOHOs range, through launching new and unique flavors. Additionally, Freska was recently introduced to the Moroccan market via import from Egypt.

Overview of Segment Performance

In 2Q2025, Edita reported consolidated revenue of EGP 5.0 billion, marking a 22.2% year-on-year increase, supported by a 38.4% increase in average price per pack, which helped offset an 11.7% decline in total packs sold during the quarter. The cake segment remained the primary contributor, generating EGP 2.6 billion in revenue, up 22.6%, fueled by a 43.3% rise in average price per pack despite a 14.4% drop in packs sold. Bakery revenue rose 20.9% to EGP 1.4 billion, supported by a 20.8% increase in average price per pack, with steady volume levels. Wafers grew 4.8% to EGP 471.8 million, driven by a 42.7% rise in pricing, which offset a 26.6% decline in volumes. Rusks posted EGP 269.1 million in revenue, up 67.1%, supported by a 54.9% increase in average price per pack combined with a 7.9% rise in volumes. Candy revenue rose 12.1% year-on-year to EGP 127.8 million, supported by a 35.6% increase in packs sold which partially offset a 17.3% drop in average price per pack. Biscuits recorded a 49.3% increase in revenue to EGP 57.1 million, supported by an 18.9% rise in volumes and a 25.5% increase in average price. The frozen segment declined 17.2% to EGP 17.1 million, as a 48.7% drop in volumes outweighed a 61.3% increase in price per pack.

In 1H2025, Edita's consolidated revenue increased by 15.7% y-o-y, supported by a 41.9% rise in average price per pack, which offset an 18.4% decline in total volumes. Cakes grew by 18.6%, driven by a 48.3% increase in pricing despite a 20.1% drop in volumes. Bakery rose 5.3%, as a 32.6% price increase offset a 20.5% volume decline. Wafers was up 8.4%, supported by a 41.1% rise in price per pack, offsetting a 22.6% drop in volumes. Rusks grew 39.8%, with a 54.4% increase in pricing against a 9.9% decline in volumes. Candy rose 2.1%, supported by a 12.1% increase in volumes, with average price dopping by 8.8%, while biscuits surged 138.5%, supported by 82.7% volume growth and a 29.2% rise in pricing. The frozen segment declined 17.7%, weighed by a 55.4% drop in volumes, despite an 84.5% increase in average price per pack.

Gross Profit Margin by Product Segment

In 2Q2025, Edita's consolidated gross profit increased by 40.6% y-o-y to EGP 1.6 billion, fuelled by strong revenue growth on the back of successful pricing strategies. During the second quarter of the year, the gross profit margin expanded to 33.2% from 28.8% in 2Q2024, reflecting operational efficiency and improved cost structures. On a segment basis, the cakes' gross profit grew 48.5% y-o-y reaching EGP 938.7 million with the gross profit margin (GPM) expanding to 35.7%, up from 29.5% in 2Q2024. The bakery segment delivered a 31.1% y-o-y increase in gross profit to EGP 439.6 million in 2Q2025, with an improved GPM of 32.1% compared to 29.6% in 2Q2024. At the wafer segment, gross profit increased 24.8% y-o-y to EGP 164.6 million, yielding a GPM of 34.9%, up from 29.3% in 2Q2024. Gross profit in the rusks segment grew by an impressive 115.0% y-o-y to EGP 77.6 million in 2Q2025, with an associated GPM of 28.8% versus 22.4% in 2Q2024. Meanwhile, the candy segment showed a 14.6% y-o-y decline in gross profit to reach EGP 28.6 million, with the GPM contracting to 22.4% compared to 29.4% in the same period last year. At the biscuits segment, gross profit recorded EGP 3.5 million in gross profit during the quarter, marking a 20.5% y-o-y decline and with a lower GPM of 6.1% versus 11.6% in 2Q2024.  

In 1H2025, Edita recorded strong gross profit growth across nearly all segments, fuelled by strong revenue growth on the back of successful pricing strategies. Total gross profit increased by 26.4% y-o-y to EGP 3.0 billion, with the consolidated GPM expanding to 32.4%, up from 29.7% in 1H2024. Core segments, namely Cakes, Bakery, and Wafers, delivered solid growth, with Cakes increasing by 28.0% y-o-y to EGP 1.7 billion, Bakery by 25.2% to EGP 724.6 million, and Wafers by 13.0% to EGP 329.5 million. Margins also improved, reaching 34.9% for Cakes (vs. 32.3%), 31.4% for Bakery (vs. 26.4%), and 32.2% for Wafers (vs. 30.9%). Additionally, Candy recorded a 214.7% y-o-y increase in gross profit to EGP 42.8 million, with the GPM improving to 23.1% from 17.5%, while Biscuits rose by 73.1% to EGP 127.2 million, with margin up to 27.9% from 22.7%. Rusks booked a gross loss of EGP 18.0 million, compared to a loss of EGP 3.4 million in 1H2024.

Revenue and Gross Profitability by Segment

*Includes contributions from Edita's imports segment

Segment Volumes and Prices

*Includes contributions from Edita's imports segment

Balance Sheet

The company's total loans and borrowings as at 30 June 2025 stood at EGP 3,821.7 million, up from EGP 3,468.2 million as at 31 December 2024. Total bank overdrafts recorded EGP 702.9 million as at 30 June 2025 versus EGP 808.4 recorded at the end of 2024. Cash balance stood at EGP 3,432.5 million as at 30 June 2025 up from EGP 1,324.2 million as at year-end 2024. Edita recorded a net debt of EGP 389.2 million as at 30 June 2025 compared to EGP 2,144.0 million in net debt as at 31 December 2024.

Edita booked inventories of EGP 2,027.6 million as at 30 June 2025, down from 3,034.0 million as at 31 December 2024. Meanwhile, trade and notes receivable stood at EGP EGP 197.3 million as at 30 June 2025, compared to EGP 174.8 million as at 31 December 2024.

Total CAPEX for the period ending 30 June 2025 amounted to EGP 458.2 million, primarily allocated to expansion-related investments, with additional expenditures for maintenance and distribution vehicles.

Egyptian Accounting Standards Reconciliation to IFRS

Edita's EAS and IFRS financial statements differ in the treatment of employees' profit share, which is expensed under the IFRS, while the EAS accounts for them as a distribution and are thus not included on the income statement. Also, EAS and IFRS differ in the calculation of EBITDA. In 1H2025, EGP 16.8 million in FX gains as well as an FA gain and profit share deduction amounting to EGP 102.8 million were subtracted from EBITDA, bringing total EAS to IFRS adjustments on EBITDA to EGP 119.5 million. A reconciliation between Edita's financial statements in EAS with the IFRS-based financial statements for 1H2025 is provided in the table below.

*Figures are based on management accounts for better disclosure on expenses breakdown

-Ends-

About Edita Food Industries

Edita, founded in 1996 and headquartered in Egypt, is a leader in the growing Egyptian packaged snack food market. The Company manufactures, markets and distributes a range of branded baked snack products including packaged cakes, bakery, rusks (baked wheat), wafers and biscuits as well as selected confectionary/candy products. The Company's local brand portfolio includes household names such as TODO, Molto, Bake Rolz, Bake Stix, Freska, Oniro and MiMix. The Company also has the exclusive ownership of the international Hostess brands Twinkies, HOHO's and Tiger Tail in Egypt, Libya, Jordan, Palestine, Morocco, Algeria, Tunisia, Syria, Lebanon, Iraq, Bahrain, Oman, the UAE, Kuwait, Qatar and Saudi Arabia; and is party to a technical assistance and know-how agreement to manufacture 11 additional Hostess brands across its territories. The Company holds strong number-one market positions in its core cake and bakery segments as well as in rusks, a leading market position in candy and a growing market position in the wafers segment. In 2Q2025, the Company derived 90.9% of its revenue from Egypt and 9.1% from regional export markets. Learn more at ir.edita.com.eg.

Contacts

Ms. Menna Shams El Din

Chief Investment Officer & Corporate Affairs

T: +202 3851-6464 | M: +2010 0 154 2428 | menna.shamseldin@edita.com.eg

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