Cairo - Mubasher: Pharos Research said in a report on Wednesday that Edita Food Industries continued with its price point migration strategy, which resulted in a segment-weighted average price sequential increase of 28.2%.
Despite the effective price increases, volumes increased quarter-on-quarter across all segments - except in croissants - by 6.4% in terms of packs and 5.9% in terms of tonnes; however, volumes during the quarter declined by 3.3% annually.
Most of Edita’s repricing strategy adjustments have been indirect, as the company altered package sizes.
In December 2016, management increased prices on some key stock keeping units (SKUs) by 25% to 50%. The effect of these price increases will be observed in the first quarter of this year, the report indicated.
Edita recorded a net profit of EGP 47 million in 2016, which is well below its 2015 net profit of EGP 349 million.
