Egyptian businessman Hani Berzi to pocket $6.9 million dividend

Key Points

• Hani Berzi will receive a $6.86 million dividend from Edita Food Industries, marking a 166.7% increase from last year’s payout.
• Edita’s strong financial position and payout policy, with a 57.1% dividend ratio, highlight its commitment to rewarding shareholders.
• Despite a revenue increase, Edita’s net profit dropped 6.1% due to inflation and currency depreciation, but operational efficiency remains solid.

Hani Berzi, the Egyptian businessman and founder of Edita Food Industries, is set to receive a $6.86 million dividend from his stake in the Cairo-based consumer goods giant. This payout, which more than double what he received last year, underscores Edita’s strong financial position and its commitment to rewarding shareholders.

The proposed dividend marks a 166.7 percent increase from the $2.58 million Berzi collected in the previous year, reflecting the company’s solid cash flow and successful payout policy. This increase follows Edita’s decision to allocate a total of EGP800.1 million ($15.6 million) to its shareholders, a move approved during a board meeting on March 9. Berzi’s share of the payout aligns with his 44.07 percent stake in the company, held through Quantum Invest BV.

Berzi’s Edita: A FMCG powerhouse

Founded by Berzi in 1996, Edita Food Industries has become a dominant force in Egypt’s fast-moving consumer goods (FMCG) sector. The company, known for its diverse range of products such as cakes, croissants, rusks, and wafers, has established a solid presence in Egypt and its neighboring markets. Today, Berzi’s stake in Edita is valued at $164.08 million, solidifying his position as a key figure in Egypt’s business landscape.

While Berzi’s dividend payout reflects financial success, Edita’s 2024 performance reveals a more complex picture. The company reported a 33.2 percent increase in revenue, reaching $319.12 million, driven by effective pricing strategies and strong demand across key product lines. However, inflation and the depreciation of the Egyptian pound weighed on profitability. Net profit fell 6.1 percent, dropping to $27.66 million from $30 million in 2023.

Despite this decline, Edita’s operational efficiency remains strong. The company’s return on equity (ROE) stands at 27.5 percent, and its return on assets (ROA) is 10.4 percent, indicating that it continues to create value for shareholders even in challenging economic conditions.

Edita’s payout reflects strong financial foundation

Edita’s payout policy, with a dividend ratio of 57.1 percent of net income, demonstrates its commitment to rewarding investors even amidst economic uncertainty. The proposed $0.0222 per-share dividend highlights the company’s stable financial foundation and the trust placed in Berzi’s leadership. As Berzi receives this dividend, his financial success further solidifies his position as a leading business magnate in the Middle East and North Africa.

As both the founder and largest shareholder, Berzi plays a key role in shaping Edita’s long-term strategy. The company’s approach to capital allocation reflects a balance between growth and shareholder returns, ensuring its continued success. With Edita’s market capitalization standing at $372.34 million, the company remains an integral part of Egypt’s economy, and Berzi’s stake underscores his prominent role in its governance.