Hani Berzi’s Edita Foods stake drops by more than $130 million

Key Points

• Hani Berzi’s stake in Edita Food Industries has dropped over $130 million, driven by a sharp decline in share prices and the devaluation of the Egyptian pound.
• Edita’s shares have fallen 7.38% in local terms, while the Egyptian pound’s depreciation amplified the loss in dollar terms, reducing market value.
• Despite the loss, Berzi remains a prominent figure in Egypt and the MENA region, though he’s no longer among the top ten wealthiest on the EGX.

Egyptian businessman Hani Berzi has witnessed a significant drop in the market value of his stake in Edita Food Industries this year, losing over $130 million.

The decline stems from a steep fall in the company’s share price on the Egyptian Exchange (EGX) and the sharp devaluation of the Egyptian pound.

Losses deepen amid pound decline

As chairman and managing director of Edita, Berzi holds a 44.07-percent stake in the packaged snack food giant through Quantum Invest BV.

This stake, representing 308.53 million ordinary shares, has seen its value decrease by $133.43 million year-to-date.

While the decline appears less severe in local currency terms, the Egyptian pound’s sharp depreciation against the dollar amplified Berzi’s losses. This marks a stark contrast to the $55.7 million gain he enjoyed year-on-year in 2023.

Currency slide weighs on Edita shares

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 strong market presence, the company’s shares have dropped 7.38 percent year-to-date in local terms, declining from EGP31.18 at the start of the year to EGP28.88 at the time of drafting this report.

However, the steep depreciation of the Egyptian pound—losing nearly 40 percent of its value against the US dollar—has significantly deepened the plunge in dollar terms.

Adjusted for currency devaluation, Edita’s share price has fallen from $1 to $0.57, representing a 42.93 percent loss. This sharp decline has slashed the company’s market capitalization to $405 million.

Hani Berzi’s wealth takes $133 million hit

For Berzi, the impact has been equally pronounced. While his stake in the company has decreased in local currency terms by EGP 669.5 million—from EGP9.62 billion to EGP8.95 billion—the dollar-denominated loss is much more significant. His holdings have declined from $310.82 million at the start of the year to $177.39 million, a $133.43-million loss.

As a result, Berzi has lost his position among the top ten richest investors on the Egyptian Exchange (EGX). Nevertheless, he remains one of the wealthiest individuals in Egypt and retains his standing as a prominent figure in the broader Middle East and North African region.