Edita Food Industries signed an EGP 105m medium-term loan with the Arab Bank, to finance the purchase and installation of a new production line, the company said in a Sunday statement.
The facility, which comes with a seven-year term, is eligible for issue under the umbrella of the Central Bank of Egypt (CBE) initiative granting loans with an interest rate of 8%.
According to the statement, Edita’s long-term strategy for 2020 will focus on driving sustainable revenue growth with its strong foundations in expansion and diversification as a base.
The food manufacturer will work on building brand equity in the newly penetrated biscuits segment, with planned above-the-line advertising during the second half (H2) of 2020 as well as the launch of new SKUs.
Regionally, the company’s greenfield investment in Morocco is on track, with construction progressing on schedule. The new facility is set to begin operations in early 2021.
Edita recorded a revenues drop of 10.9% year-on-year (y-o-y) to EGP 768.7m during the second quarter (Q2) of 2020, on account of lower volumes due to the novel coronavirus (COVID-19) pandemic.