(MENAFN- Daily News Egypt) Edita Food Industries has announced it is targeting only a basic expansion in 2020, following the global emergence of the coronavirus (COVID-19) pandemic.
The company is looking to add 200 new trucks, whilst also inaugurating a factory in Morocco and enter the biscuit production sector by the end of this year.
Head of Investor Relations Menna Shams El Din told Daily News Egypt that the company is working to add about 200 new distribution trucks this year, to build on and develop its distribution network.
She added that the company is working to enter the biscuit sector during the current year, and work is currently underway on the production line.
Shams El-Din also said that the decline in revenues has come on the back of a drop in exports, due to the ongoing coronavirus pandemic, and a drop in sales due to the curfew.
Edita Food Industries achieved consolidated profits during the first quarter (Q1) of 2020 amounting to EGP 83m, a 34% decline on EGP 124.9m reported in the same period of last year.
Sales decreased by 1.8% during the period to March 2020, to EGP 964m, compared to EGP 982m in the same period of last year. The company said that the decline in revenues reflects the slowdown in the light-packed food market due to the repercussions from the coronavirus.
It added that the company is adopting a strategy to produce new, more expensive products that will offset the impact of declining revenues during the same period.
The cost of sales during the same period of 2020 amounted to EGP 623.9m, compared to EGP 630.8m in the same period last year.
The gross profit decreased during Q1 of 2020 to EGP 340m, compared to EGP 351.3m in the same period last year. This was accompanied by the stability of the gross profit margin at 34.8%, supported by the company's efforts to reduce the cost of sales.
The company has taken and implemented a set of precautionary measures against the coronavirus in line with state efforts to contain the spread of the virus. The company remains focused on strengthening health and safety measures to ensure business continuity.
The Edita Foundation for Social Development is working to support the health care sector as part of its corporate social responsibility (CSR) initiatives.
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