Positive expectations for food industries in 2023

Food producers expect positive performance during the current year, despite the high inflation and interest rates, but the food sector is always defensive in crises. In spite of the unfavorable conditions, food companies have succeeded in recording significant growth rates over the past year with expectations of continued positive performance during the current year.

Menna Shams El Din, Director of Investor Relations at Edita Food Industries, told Daily News Egypt that the company was able to maintain its profit margins during the current year, by adopting a new pricing policy after increasing the prices of raw materials.

She added that the company absorbed the market movement very quickly, and maintained its profitability over the past year.

Edita achieved consolidated net profits that exceeded EGP 1bn during the fiscal year ending last December, compared to EGP 528.870m in the corresponding period, an increase of 92.9%.

Marina William, a financial analyst at Al Ahly Pharos for Securities Brokerage, said that the food sector companies benefited greatly from inflation and their profits increased last year, starting from the second quarter of 2022 until now, especially since the companies quickly absorbed the rise in raw materials, and put in place new policies to maintain corporate profit margins.

She explained that the companies passed the increase in raw materials to consumers to avoid affecting their profit margins, in addition to offering new products at different prices.