Edita plans to invest Capex of EGP 400m in its 2021 expansion

Alyaa Stohy
2 Min Read

Edita Food Industries plans to direct its 2021 capital expenditure (Capex) of around EGP 400m to finance its expansion and industrial operations during the year. The sum will be invested either in capacity expansion or installing new production lines.

The company strategy is to push the consumer to higher price points to support long-term profitability. It also aims to introduce its Oniro biscuit line as a new revenue stream, which is expected to contribute to 3% of total revenues in 2021.

Edita also sees acquisition opportunities in 2021 against 2020, the latter being severely affected by the repercussions of the novel coronavirus (COVID-19) pandemic.

Going forward in 2021, a continuation of recovery is expected, supported mainly by a growth in the sweet and savoury bakery segment, as well as the cake segment. Edita is also targeting new products and innovations in the pipeline, and to continue the strategy of portfolio optimisation.

Although the back to school season has been postponed, numbers for 2021 are promising with double digit growth year-on-year (y-o-y) expected in January.

Edita’s current pricing strategy will see more indirect price increases, especially in the bakery and cakes sectors. In case Egypt’s new VAT law receives approval, the company may consider some direct price increases.

It expects to reap the fruits of the recent investments in logistics, marketing, and new lines in 2021 and 2022.

Construction on Edita’s factory in Morocco has been completed, and the company will start installation of the first production line this month. The line is expected to start operations in the first quarter (Q1) of 2021, with product pricing expected to be slightly higher in Morocco.

Edita currently exports wafer products to Morocco, but once operations at the factory begin, there will be production of these products, as well as cakes, on the ground there.

Current global export markets are not doing well, given the current environment caused by the novel coronavirus (COVID-19) pandemic.

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