Edita, led by Egyptian businessman Hani Berzi, sees profits slip below $30 million on rising costs

Key Points

• Edita’s net profit fell 6.1% to $27.66 million in 2024, as rising costs and currency devaluation offset strong revenue growth.
• Edita’s cake revenue jumped 37.1% to $163.97 million, while biscuits saw explosive 144.4% growth, doubling year-over-year.
• Edita acquired a 49% stake in Iraq’s Tuama Jebur Abbas for $8 million, marking its first manufacturing presence in the country.

Edita Food Industries, the Cairo-based consumer goods giant led by Egyptian businessman Hani Berzi, posted a mixed financial performance for 2024. While revenue surged, higher operational costs and currency devaluation cut into profits, pushing earnings below the previous year’s $30 million benchmark.

Profit takes a hit amid rising costs

Edita’s net profit dropped 6.1 percent, falling from EGP1.51 billion ($30 million) to EGP 1.4 billion ($27.66 million) in 2024. The decline was largely driven by the Egyptian pound’s devaluation in March and rising operational expenses, despite strong revenue growth.

On the bright side, revenue climbed 33.2 percent, jumping from EGP 12.13 billion ($239.55 million) to EGP 16.15 billion ($319.12 million). This increase was fueled by price adjustments and higher sales volumes across key product categories.

Cake leads sales growth

Edita’s cake segment remained the company’s top performer, growing 37.1 percent to EGP 8.3 billion ($163.97 million). The bakery division also saw steady growth, with revenue rising 14.5 percent to EGP 4.7 billion ($92.85 million).

Other product categories posted strong gains. Wafers and rusks saw revenue climb 60.8 percent and 33.4 percent, respectively. The biggest jumps came from the candy and biscuit segments—candy sales rose 57.6 percent, while biscuit sales more than doubled, surging 144.4 percent. Edita also made strides in frozen foods, which contributed EGP 72.3 million ($1.43 million) in its first full year.

Edita’s international business remained a bright spot, with export sales rising 42.1 percent year-on-year to EGP 1.6 billion ($31.62 million), accounting for 9.7 percent of total revenue. The company’s Moroccan operations also expanded by 45.8 percent, reaching EGP 475.6 million ($9.4 million) and making up 2.9 percent of overall revenue.

Hani Berzi expands Edita’s regional footprint

Edita continues to dominate Egypt’s snack food market, manufacturing and distributing packaged cakes, croissants, rusks, and wafers through a vast retail network.

Berzi, the company’s founder and current chairman, holds a 41.95-percent stake in Edita through Quantum Invest BV. His stake, valued at more than $170 million, solidifies his position as one of Egypt’s wealthiest business figures.

Taking a major step in regional expansion, Edita acquired a 49 percent stake in Iraqi snack producer Tuama Jebur Abbas for $8 million. The deal includes an operational facility with three production lines, marking the company’s first local manufacturing presence in Iraq.