Edita Food Shares Soar, Increasing Hani Berzi’s Stake by $17.2 Million

Hani Berzi, an Egyptian businessman, has seen the market value of his investment in Edita Food Industries, a key company in Egypt’s packaged snack food sector, rise significantly. This is due to a recent increase in the company’s share price on the Egyptian Exchange.

Berzi’s investment in Edita Food Industries increased by EGP809.87 million ($17.18 million) in the last 13 days. This comes after his investment declined by $5.97 million between May 7 and 13, from EGP8.67 billion ($183.33 million) to EGP8.39 billion ($177.37 million).

Edita Food Industries is a market leader in Egypt’s expanding packaged snack food sector. The consumer goods company manufactures and sells a wide range of branded snack products via its broad retail network, including packaged cakes, croissants, rusks (baked wheat), and wafers.

Edita’s EGX shares have recently increased by 9.78 percent, rising from EGP27.30 ($0.579) on May 14 to EGP29.97 ($0.636) as of the time of writing. This increase raised the company’s market capitalization to more than $440 million.

Hani Berzi, who started Edita Food Industries in 1996, is currently the company’s chairman and managing director. He owns a huge 41.95 percent stake in Quantum Invest BV, which represents 303,323,015 ordinary shares.

Berzi’s holding in Edita Foods has increased in market value by EGP809.87 million ($17.18 million) during the last 13 days, from EGP8.28 billion ($175.63 million) on May 14 to EGP9.09 billion ($192.81 million) today.

The considerable increase in the market value of Berzi’s stock not only confirms his standing as one of Egypt’s wealthiest persons, but also highlights his powerful role in the country’s commercial environment.

While Berzi’s investment in Edita Food has increased recently, investors should exercise caution. Year to date, the share price is down 3.88 percent. When the Egyptian pound is devalued, the total fall is much higher, at 36.9 percent.

Edita Food investors suffer a double whammy: a 3.88 percent loss in local currency and a 36.9 percent loss due to currency devaluation. A $100,000 investment at the start of the year would now be worth $63,100, a hefty $36,900 loss. This highlights the hazards of currency changes and regional market volatility.

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