Cairo – Mubasher: Pharos Research said it kept its fair value (FV) for Edita Food Industries at EGP 14.60 per share, with a 'Hold' recommendation.
Edita's net profit after tax and minority interest closed 2Q - 2016 at EGP 41.6 million, down 37.9% y-o-y and with a net margin of 7.6% compared 13.0% in 2Q - 2015.
Meanwhile, on a q-o-q basis, bottom-line increased 27.2% with net profit margin improving 1.3% points from 6.3%. Botom line in 2Q - 2016 was negatively impacted by FX provisions (which will continue to be booked at EGP3.0 million per month) and higher interest expense.
EBITDA for the second quarter eased 17.8% y-o-y to EGP 96.3 million, reflecting on EBITDA margin, which declined to 17.5% against 22.8% a year ago. This was the result of significant increases in sales and marketing expenses to support the successful roll-out of new products at higher price points.
