Egypt's Edita resumes production after seized sugar supply restored

Ahram Online , Thursday 27 Oct 2016

The sweets factory got its sugar inventory back after prosecutors ordered release of confiscated supplies

A File Photo: A baker makes traditional sweets in Cairo using sugar (Photo:Reuters)

Edita Food Industries resumed operations in its factory in Upper Egypt after a three-day shutdown following the Egyptian authorities' confiscation of the company's sugar supply, the company announced on Thursday in a statement to the stock exchange.

The company's shares rose 6.78 percent in Thursday's trading to close at EGP 8.98.

On Wednesday, the Prosecutor General's office ordered the release of Edita's sugar inventory, which was seized last week at the company's factory in Beni Suef governorate, Upper Egypt.

On Monday, the company suspended production after authorities confiscated around 2,000 tonnes of sugar, which the company said amounted to a three-week supply for making its pastries, cakes and snacks.

The prosecution had opened an investigation into Edita to determine whether sugar found in storage was illegally purchased.

Edita is the largest food company listed on the Egyptian Stock Exchange.

The shares of Edita and Juhayna, the second largest company listed in the stock exchange's food sector, plunged during Monday's midday trading by 4.85 percent (to EGP 7.79 per share) and 8.50 percent (to EGP 3.70 per share) respectively.

The country has been facing a severe sugar shortage due to an acute dollar shortage, resulting in a price hike in unsubsidized sugar that has reached EGP 9-10 per kilogramme, up from EGP 4.5-6 in August.

Search Keywords:
Short link: