Has an edge to other food plays, but downgrade to Neutral on rich valuation
Mounting costs trigger a change in pricing strategy. The EGP’s weakness pushed Edita to raise prices of Molto brand SKUs (c32% of revenue) by 25-50% in Oct 2016. This comes despite Edita preferring indirect price increases such as new product launches or upsizing. We raise our TP by 4% to EGP13.0/share, as better pricing and DCF rollover offset our expectations of slower volume growth in 2017 (+8% y-o-y vs. +14% previously) and EBITDA margin recovery (-1pp y-o-y to 19.4% vs 22.3%).
Edita Food Industries is a Fast-Moving Consumer Goods (FMCG) company based in Egypt. Co. is engaged in developing, manufacturing and distributing products and brands such as Molto, TODO, Bake Rolz, Bake Stix, Mimix, HoHo's, Twinkies and Tiger Tail. Co. also acts as the sole regional distributor of several brands of imported sweeteners, olive oils, & pasta and maintains market activities in the Croissant, Cakes & Bread snacks categories in Egypt. Co. is predominately active in the Egyptian market but also distributes its products to consumers in more than 15 other markets in Middle East, Africa and Asia.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.