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Egyptian businessman Hani Berzi, a prominent figure in the Middle East and North Africa’s consumer products sector, has seen more than $11 million wiped from his stake in Edita Food Industries after a sharp drop in the company’s stock price.
Berzi holds more than 308.5 million shares in Edita through Quantum Invest BV, giving him control of 44.07 percent of the company. Over the past 27 trading days, the value of his holding fell by EGP536.84 million ($11.19 million), reducing his total stake from about $118 million in early August to roughly $106 million.
EGX sees Edita stock decline
Edita’s shares fell 9.49 percent, sliding from EGP18.34 ($0.38) to EGP16.60 ($0.35), dragging the company’s market capitalization below the $250 million mark. Investors have expressed concern about the company’s near-term growth, given the difficult operating environment.
The recent decline comes as Edita faces challenges common to consumer-focused companies in Egypt as household spending slowed due to rising prices and double-digit inflation. These pressures have weighed heavily on the company’s stock leading to the recent dip on the EGX.
Despite the recent dip on the EGX Edita’s shares are up by18.15 percent since the start of the year, showing its resilience. A $100,000 investment in Edita's shares on Jan. 1 would now be worth $118,150 on the EGX at the time of drafting this report, thus showing a profit of $18,150.
Hani Berzi’s gains this year remain intact
For Berzi, the recent drop only reverses a portion of the gains he made earlier in the year. Between July 1 and August 8, his stake increased by more than $31 million. While the market may remain volatile in the short term, Berzi’s long-term commitment to Egypt’s packaged food sector continues to deliver value.
Edita, known for its baked goods and snacks, remains a key player in Egypt’s consumer market, and industry watchers say the company’s ability to navigate economic headwinds will determine whether the stock regains its recent highs.
