Egypt's PM heads to Japan for TICAD 9 Africa development summit    National Council for Childhood reviews plan to combat child labour    Egypt's Supreme Organ Transplant Committee strengthens oversight, standards    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    African agribusiness market expected to reach $1tr by 2030    Price cuts underway across Egypt, says trade federation report    Zelenskyy seeks US security guarantees as Trump says he can 'end war now'    Israelis protest for hostage deal amid growing pressure on Netanyahu    Serbia's Vucic vows 'tough measures' against protesters after unrest    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Edita to revise 2019/20 capex budget to cover key projects
Despite slashing capex budget to EGP 650m from EGP 790m, management optimistic about H2 of 2020
Published in Daily News Egypt on 27 - 06 - 2020

The Edita Food Industries has decided to revise its capital expenditure )capex( budget for the fiscal year (FY) 2019/20, from an initial EGP 790m to EGP 650m.
The revision comes in line with a lower revenue outlook, and was undertaken to cover key projects it is investing in.
These include: two wafer lines; a biscuit line; the expansion of the company's distribution fleet expansion to over 200 vehicles; and two production lines in Morocco. The company's blended utilisation currently stands at about 60%.
Edita is going ahead with the construction of its Morocco factory, which will start operations at the beginning of 2021 with a cake and a wafer production line. As of the first quarter (Q1) of 2020, exports to Morocco were picking-up reaching about 14% of total exports.
At the beginning of 2020, Edita decided to increase its stock of raw materials to protect against the longer lead time in raw materials and finished goods imports, of between three and six days. The decision was brought into effect to protect against any production disruptions.
Edita has not witnessed any major changes in their working capital cycle on the back of the latest operating environment, since 97% of sales are still cash-based.
The company is optimistic in terms of the potential return of schools, universities and other on-the-ground activities by Q3 of 2020.
Edita invested heavily in optimising its portfolio and diversifying revenue streams with a series of new launches. This included the company's entry into the biscuits segment, which added 6,000 tpa in May 2020, and the expansion of its bakery segment, using 5,500 tpa in Jan 2020. The company also introduced an EGP 5 per pack and EGP 4 per pack price Molto Magnum and Sandwich.
Besides the impact of the novel coronavirus (COVID-19) on sales, the company considers its new launches as successful. Some stock keeping units (SKUs) have, in fact, exceeded their initial budgets for the quarter, with Molto Magnum, upsized HoHos and Todo Max constituting about 14% of revenues for Q1 of 2020.
According to the latest market share data, Edita saw some market share gains in certain segments, including 3-4% increase in the cake and sweets segments. The company was also able to defend its market share in other segments.


Clic here to read the story from its source.