reports
- Marina William
EDITA: 2Q23| Margins maintained steadily by rise in prices and cost cu...
Rise in prices supports top-line annually and sequentially while volumes falter on a sequential front; Biscuits segment achieves a record-breaking top-line for the quarter EFID achieved another quarter of sequential revenues growth, recording EGP2,858 mn (+81.7% YoY, +2.8% QoQ) close to our estimates of EGP2,915 mn. The rise was backed annually and sequentially by the rise in ASP to reach EGP3.00/pack (+41.2% YoY, +10.8% QoQ). Volumes waned on a sequential basis to record EGP959 mn packs (+28...
- Marina William
Egypt Food & Beverages: 1Q23 – Higher Prices, Lagging Costs & Margin E...
The companies under our coverage in the Food and Beverages sector all witnessed an outstanding quarter when it comes to enhanced profitability and margins, all backed by nearly the same trends with varying extents. These trends are: * Rising top-line levels backed by prices rather than volumes. * Lagging cost rises due to stocking-up of low-priced inventory. * Rise in GPMS backed by the price increases and lagging costs. * Higher EBITDA margins backed by enhanced gross profit...
- Marina William
EDITA: 1Q23 | Revenues continue the growth track; Upgrade FV to EGP22....
TOP-LINE HITS NEW RECORD HIGHS; CAKE’S GROWTH UNMATCHED EFID booked another record-breaking quarter when it comes to revenues. Top-line came in at EGP2,780 mn, a YoY rise of 78.3% and 10.2% QoQ, driven by a mix of higher prices as well as higher volumes. ASPs climbed by 32.5% YoY and 15.9% QoQ. Volumes climbed by 21.7% YoY, but dropped by 9.6% QoQ. The cake segment came in as the major contributor to top-line during the quarter by 54%, recording revenues of EGP1,512 mn, which is 114.8% higher...
- Marina William
EDITA: 4Q22 | Simply Unstoppable; Top-line backed by prices & volumes
Green prevails across all segments; Cake and bakery volumes rally despite price increases EFID achieved another remarkably strong quarter, recording revenues of EGP2,523 mn (+63.9% YoY, +25.2% QoQ). The rise came supported by both, volumes as well as prices. Priced jumped by 21.5% YoY and 7.4% to reach an average of EGP2.30/pack. Despite the rise in prices, volumes climbed significantly by 34.7% YoY and 16.6% QoQ to reach 1.1 bn pack during 4Q22. The rise in revenues came backed by anannual a...
- Marina William
EFID | Management Meeting Key Takeaways
2022 updates and 2023 targets * EFID plans to widen their price spectrum to be present in all price points and not leave a gap in the market to maintain market share and satisfy a wide range of target audience without risking margins * 4Q22 witnessed a rise in volumes and prices YoY * 1H22 witnessed key direct and indirect price increases, allowing the company to maintain healthy margins and profitability in 2022 overall * With the company’s indirect prices increases and diver...
- Marina William
EDITA: 3Q22 – Top-line supported by both prices and volumes; rally to ...
REVENUES BACKED BY VOLUMES AND PRICES; CAKE SEGMENT CONTINUES TO SHINE WHILE WAFERS LAG BEHIND EFID booked revenues for 3Q22 of EGP2,016 mn compared to EGP1,395 mn recorded in 3Q21 and EGP1,573 mn recorded in 2Q22 (+44.5% YoY, +28.1% QoQ). The rise came backed by both volumes and prices combined, where total volume sold climbed by 1.5% YoY and 25.1% QoQ to reach 33 thousand tons. Volumes by packs climbed by 19.6% YoY and 25.1% QoQ to 933 mn packs. The climb in packs being of a higher pace th...
- Marina William
EDITA: 2Q22 – Positive performance despite seasonality backed by price...
TOP-LINE SOARS ANNUALLY; SEQUENTIAL PERFORMANCE LAGS DUE TO SEASONALITY EFID booked a healthy top-line of EGP1,573 mn for 2Q22, compared to EGP1,151 mn recorded in 2Q21 and EGP1,559 mn recorded in 1Q22 (+36.7% YoY, +0.9% QoQ). The rise was achieved by an increase in volumes and prices, with the latter having the highest contribution. ASP/pack during the quarter reached EGP2.1, a rise of 18.1% YoY and 3.9% QoQ. Volumes sold reached 746 mn pack with a rise of 15.8% YoY and a decline of 3.1% Qo...
- Marina William
Egypt F&B Sector 2022 | Weathering Through The Storm; Shielded by Dema...
Click through for our F&B Sector update for 2022, in which we present: * Sector Outlook, Hopes, Fears, and Top Picks * Sector Valuation Table and Inter-company Comparison * Individual F&B Players: 2022 Fundamental Review 1. Edita (EFID)| The Flexibility Champion 2. Juhayna (JUFO)| Solidifying Position 3. Domty (DOMT)| Shifting Away from Norm 4. Obourland (OLFI)| Steady State Wins 5. Cairo Poultry (POUL)| Lacks Catalyst
- Marina William
EDITA: EFID 1Q22 | Price hikes support margins, yet take a toll on vol...
PRICES DRIVE PERFORMANCE; BISCUITS GAINING MOMENTUM EFID recorded a solid 1Q22 top-line of EGP1,559, 33.7% higher YoY and 1.3% higher QoQ. The high YoY growth was achieved by the support of both prices and volumes, where selling prices climbed by a full 15.9% YoY to reach EGP2.0/pack, and volumes remained broadly flat to reach 28,600 tons, a growth of 0.4% YoY. The growth in the number of tons is minimal while the growth in the number of packs is way higher of 15.6% YoY, supporting the compan...
- Marina William
EDITA: 4Q21 – Topline surges on prices and volumes; revenue enhancemen...
HEIGHTENED PRICES DIDN’T STOP VOLUME CLIMB EFID recorded a remarkable FY21 topline of EGP5,254 mn, compared to EGP4,021 mn in FY20, showing a rise of 30.7%, exceeding our expectations of EGP4,939 mn by 6%. 4Q21 revenues reached a solid EGP1,542 mn, higher than 4Q20 levels of EGP1,229.3 mn by 25.5% and higher than the previous quarter of EGP1,395 mn by 10.6%. This impressive sales performance was driven by both, higher volumes as well as higher prices across the products portfolio. The strateg...
- Marina William
Edita: Management webinar key takeaways
2021-2022 FINANCIAL TARGETS * Despite the challenges witnessed in 2021 be it the pandemic challenges and the global inflationary environment, 2021 was a year of recovery for Edita in addition to delivering on key milestones on its growth strategies. * Edita managed to achieve a high double-digit growth in earnings as well as cross the EGP 5 billion mark. * The company followed a very comprehensive repricing strategy in 2021, starting 1Q21 with some indirect price increases and down...
EDITA FOOD INDUSTRIES sees its risk increased and a downgrade to Neutr...
EDITA FOOD INDUSTRIES (EG), a company active in the Food Retailers & Wholesalers industry, increases its market risk and lowers its general evaluation. The independent financial analyst theScreener just requalified the stock market behaviour as moderately risky. On the other hand, theScreener awards a fundamental star to the title, but the new risk assessment downgrades the general evaluation to Neutral. As of the analysis date November 19, 2021, the closing price was EGP 7.34 and its expected v...
- Martina Bernaba
EDITA: 3Q21| Topline and bottom-line recovery dual-driven by higher vo...
HIGHER VOLUMES AND PRICES BOOST REVENUES EFID recorded a topline of EGP1.395 billion in 3Q21, higher than our expectations of EGP1.28 billion by 9% and up 31.7% YoY and 21.2% QoQ. Revenues for 9M21 amounted to EGP3.712 billion, up 33.0% YoY. This remarkable increase was dual-driven by higher volumes as well as higher pricing across Edita’s increasingly optimized product portfolio. COST EFFICIENCY STRATEGIES SUPPORT MARGINS 3Q21 gross profit came in at EGP411 million (up 13.3% YoY and 21.3% Qo...
- Martina Bernaba
EDITA: EDITA: Strong revenue recovery, optimised cost offset commodity...
SOLID ANNUAL REVENUES GROWTH DRIVEN BY VOLUMES AND PRICES EFID recorded a topline of EGP1.151 billion in 2Q21, higher than our expectations of EGP1.061 billion and up 50% YoY but down 1% QoQ. Revenues for 1H21 amounted to EGP2.317 billion, up 33.7% YoY. The YoY remarkable increase came on the back of continued portfolio optimisation, improved pricing, and growing consumer demand for EFID’s products, especially in cakes, bakery, and wafers segments supported by new product launches over the pa...
- Marina William
- Martina Bernaba
- Merna Arafat
- Omar Attia
- Zeyad Ahmed
Egypt: Commodity and material prices update – 2Q21
In this report we assess the average material prices for 2Q21 and depict the impact of pricing trends on the financial performance of the relevant listed equities in Egypt. Prices of raw materials in the food and beverages sector continued to normalize in 2Q21, except for prices of SMP and WMP. Accordingly, we expect a gradual recovery of margins to appear in the 3Q21 results of JUFO, EFID, DOMT and OLFIas price increases kick in and with seasonality of revenues. Most companies have an invent...
ABUK ABU QIR FERTILIZERS & CHEMICAL INDUSTRIES
CCAP CITADEL CAPITAL SAE
EKHO EGYPT KUWAIT HOLDING CO
AUTO GB AUTO
EFID EDITA FOOD INDUSTRIES
JUFO JUHAYNA FOOD INDUSTRIES CO.
OLFI OBOUR LAND FOR FOOD INDUSTRIES
DOMT ARABIAN FOOD INDUSTRIES CO DOMTY
ORWE ORIENTAL WEAVERS GROUP
MFPC MISR FERTILIZERS PRODUCTION CO SAE
SKPC SIDI KERIR PETROCHEMICALS CO
- Martina Bernaba
EDITA: 1Q21 – Higher commodity prices pressure margins
STRONG GROWTH OF REVENUES ON A YOY BASIS AS DEMAND NORMALISES EFID recorded a topline of EGP1.166 billion in 1Q21 higher than our expectations of EGP1.085 billion and up 21% YoY but down 5% QoQ. The YoY increase came on the back of continued portfolio optimisation and improved pricing. Volume sold for the quarter increased by 4.7% YoY but declined by 7.1% QoQ to 666 million packs as economic activity continued to normalise coupled with rising demand. Average selling price increased by 2.1% Qo...
- Alaa Tolba
- Mirna Mohsen
Egypt food stocks | Weathering the storm selectively; Pick Obour Land
Not out of the woods, with a challenging year ahead. We hold our views unchanged, cutting our Egypt food TPs by c10%, on average, factoring: i) an average 35bps cut in 2021e GPM, reflecting a higher-than-expected spur in commodity prices, and ii) slower-than-anticipated recovery in cheese volumes, amid the higher magnitude of price hikes. Beyond 2021e, improved affordability should allow for better cost passing ability (+3-5% price hikes over 2022-25e), offsetting any weakness in EGP, as the pro...
- Marina William
- Martina Bernaba
- Merna Arafat
- Omar Attia
- Zeyad Ahmed
Egypt Commodity and Material Prices: Sector outlook and trends – Q1 21...
We present the 1Q21 material prices that are relevant to the petrochemical, consumer and industrial & materials sectors. In our 12-page report, we depict the impact of such changes on the financial performance of listed equities in Egypt. We also present the quarterly breakdown of each sector. Most companies have inventory of raw material that covers somewhere around 2-3 months. The increase in raw material costs is slowing down in 2Q21. Accordingly, we expect the pressure on margins to appe...
ESRS EL EZZ STEEL REBARS
ABUK ABU QIR FERTILIZERS & CHEMICAL INDUSTRIES
EGCH EGYPTIAN CHEMICAL INDUSTRIES
EGAL EGYPT ALUMINIUM CO.
CCAP CITADEL CAPITAL SAE
EFID EDITA FOOD INDUSTRIES
JUFO JUHAYNA FOOD INDUSTRIES CO.
OLFI OBOUR LAND FOR FOOD INDUSTRIES
DOMT ARABIAN FOOD INDUSTRIES CO DOMTY
MFPC MISR FERTILIZERS PRODUCTION CO SAE
SKPC SIDI KERIR PETROCHEMICALS CO
- Martina Bernaba
Egypt F&B Sector: Near flotation lows despite better fundamentals
JUHAYNA (JUFO): FACING MANAGEMENT, COMPETITIVE AND RAW MATERIAL COST PRESSURES – ALL PRICED-IN * JUFO is currently trading at EGP5.29/share with 2021 EV/EBITDA multiple of 4.3x; which reflects a potential upside of 108% considering our fair value of EGP11.00/share. * JUFO is currently trading at FY21 P/E of 7.5x which is much lower than its 5-year average multiple of 28.4x and 3-year average multiple of 27.5x. * The current price levels of JUFO are the lowest since late 2016, follo...
- Martina Bernaba
Edita Food Industries: Management webinar key takeaways
ON THE GROUND UPDATE * 4Q20 is a good quarter with a low double-digit growth YoY in topline with significant recovery across all segments. This came on the back of Egyptian traffic coming back to the street as well as the seasonality of the business. * This growth was mainly driven by the core segments which are the bakery and the cakes segments. The bakery segment was an outperformer mainly driven by the higher value propositions at higher price points, such as the Molto sandwich and t...
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