Last Update 7:18
Monday, 24 July 2017

Egyptian food company Juhayna to reduce investment in 2017

Reuters , Thursday 16 Feb 2017
Juhayna
Juhayna is Egypt's largest dairy producer (Company logo)
Share/Bookmark
Views: 1917
Share/Bookmark
Views: 1917

Egypt's Juhayna Food Industries will cut investment in 2017 due to consumers' low purchasing power and raise prices by 5-10 percent this year, the company's chief executive said.

Juhayna, Egypt's largest dairy and juices producer, expects first-quarter profit to fall but results should begin to improve in the second quarter, CEO Seif El Din Thabet told Reuters.

"We have invested around 450 million Egyptian pounds in 2016 from a total of 500 million pounds of expected investments," Thabet said. "This year we will decrease investment and it will be much less than last year because of the recession and low consumer purchasing power."

Established in 1983, Juhayna makes juice, milk and yoghurt products for export across Africa and the Middle East. It also sells a limited range in European and U.S. markets.

Record inflation triggered by a currency float on Nov. 3 and IMF-endorsed austerity measures has further dented the purchasing power of ordinary Egyptians already suffering the effects of years of economic and political turmoil.

Core inflation hit its highest in more than a decade in January at 30.86 percent.

"Our production capacity sufficient for our needs until 2018, accordingly there is no urgent need for expansion. We want to focus on improving our cash flow," he said.

Inflation is forecast to rise again this year as further austerity measures are expected.

The company has gradually increased prices by 35 percent in 2016 and is expecting to further increase its product prices.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.