Egyptian businessman Hani Berzi experienced a sharp decline in his wealth as shares of Edita Food Industries, the Cairo-based packaged snack food group, plunged on the Egyptian Exchange (EGX), wiping out more than $9 million in value.
Over the past five days, Berzi, who holds a significant 41.95-percent stake in the company, saw the value of his shares fall by EGP448.92 million ($9.29 million), dragging his overall stake below the $175-million mark.
The recent downturn comes after losses from Aug. 13 to 23, when Berzi’s holdings fell by $11.63 million. The value of his stake dropped from EGP8.92 billion ($182.77 million) to EGP8.35 billion ($171.14 million), adding to the financial strain.
Edita Food Industries, a leading player in Egypt’s expanding packaged snack food market, produces a wide range of popular products including cakes, croissants, rusks, and wafers.
Despite its dominant position, the company has struggled to maintain shareholder value amid macroeconomic challenges. Over the past five days, Edita’s stock fell 5.11 percent, sliding from EGP28.99 ($0.6) to EGP27.51 ($0.57), dragging its market capitalization below $400 million.
Berzi, who serves as both chairman and managing director, holds 303,323,015 shares in Edita, and the recent decline has directly impacted his wealth. The value of his holdings fell from EGP8.79 billion ($181.95 million) to EGP8.34 billion ($172.67 million), continuing a pattern of losses that has raised concerns among investors.
Edita Food Industries has seen an 11.77 percent year-to-date drop in its stock price, but the hit is sharper when factoring in the Egyptian pound’s decline.
In dollar terms, the stock has plunged 43.59 percent, highlighting Egypt’s broader currency woes. A $100,000 investment in Edita at the start of 2024 is now worth just $56,415, a loss of $43,585.
As Egypt grapples with economic uncertainty, Edita’s stock reflects wider market struggles, with foreign currency shortages and inflation pressuring consumer goods firms. For Berzi, the losses highlight the challenges facing even leading Egyptian businesses.