EGYPT – Egypt’s leading dairy, juice, and food producer, Juhayna Food Industries, has announced the consolidation of four of its subsidiaries: Egyptian Food Industries Company, Eldawleya Modern Food Industries Company, El Marwa Food Industries, and Elmasreya for Dairy Products Company.
The merger, disclosed to the Egyptian Exchange on November 24, 2024, will be based on the book value of the companies as stated in their 2023 financial statements.
Streamlining operations for efficiency
The merger aims to reduce administrative costs by streamlining operations and cutting redundancies.
Juhayna also seeks to enhance its agility in responding to shifting consumer preferences, particularly in the dairy sector, where demand for healthier and functional products is increasing.
Recent innovations reflect this strategy, including the reformulation of its chocolate mix to contain 30% less sugar.
In November 2024, the company introduced a chocolate-flavored pudding made with the new mix, providing 12% of a child’s daily protein needs and 13% of their calcium intake.
Juhayna also expanded its Greek yogurt offerings to include healthier flavors like pineapple, acai, oats, and flaxseed.
Additionally, the company launched high-protein juice options, Pina Colada and Mon Cherry, catering to health-conscious consumers.
Strong financial performance
The merger follows a period of robust financial performance for Juhayna. In Q3 2024, the company recorded a 57% year-on-year revenue increase, reaching EGP6.84 billion (US$135 million), while net profit surged 197% to EGP958 million (US$18.84 million).
The company’s growth trajectory has been bolstered by government policies restricting foreign FMCG manufacturers from importing into Egypt. This support contributed to a 29% year-on-year revenue increase in 2022 and a 21% rise in net profit. Revenue growth of 42% was also recorded in Q1 2023.
Market reach and investment
Juhayna’s market presence includes over 200 products distributed in 62 markets worldwide. Domestically, the company operates 38 distribution centers, serving 136,000 outlets across Egypt.
The company has also attracted foreign investment. In June 2023, Qatari food group Baladna increased its stake in Juhayna to 15.03% by acquiring shares worth EGP7.4 million (US$240,000).
