This image will be automatically disabled when it gets reported by several people.
Egypt's Bisco Misr takes further sales bite as net profits fall Snack manufacturer sees boost in local sales and exports stymied by steep rises in overheads
One of Egypt's major food manufacturers is reporting impressive sales growth but weaker net profits for the financial year (FY) 2010-2011. Results from Bisco Misr, established as The Egyptian Company for Foods, showed year-on-year growth of 27 per cent, reaching LE290.1 million in FY2010. Net profits, however, declined by 12 per cent, reaching LE21.1m, against LE24m in FY2009. Earnings before interest and tax (EBIT) climbed by six per cent to reach LE24m, signalling an EBIT margin of 8.3 per cent versus 9.9 per cent in FY2009. The research arm of investment bank Beltone attibuted Bisco Misr's climb in sales to a healthy 28 per cent increase in local sales and an 18 per cent boost in exports year-on-year. But it believes a 34 per cent year-on-year leap in the cost of labour, material and overheads combined with a 15 per cent in selling, general and administrative expenses to squeeze profit margins. In addition, Bisco Misr recognised capital gains of LE3.6m in 2009, which was not repeated in 2010, said Beltone.
