Egyptian snack maker Edita Food Industries, listed on the Egyptian Exchange, has halved the production capacity of its factory in Iraq and postponed the launch of a new product in the Iraqi market due to the Iran war, Sameh Naguib, Vice President and CFO of Edita told Zawya Arabic.

Last year, Edita, which has been operating in Egypt since 1996, signed an agreement to acquire a 49% stake in the Iraqi company Tuama Jebur Abbas and establish Edita Iraq through a UAE-based holding company, with Edita retaining management rights.

The agreement included the acquisition of a fully equipped factory in Iraq with two cake production lines and a biscuit production line.

The company also operates factories in Egypt and Morocco, producing a range of light baked goods under several brands, including Molto and Todo.

“We can’t operate at full capacity… we’re running only one shift instead of the planned two, and the launch of Molto (croissant) products has been delayed due to the situation,” Naguib said.

He noted that the Iraq plant had been planned to operate at 70–80% of its production capacity this year, but it is currently running at just 30–35%.

Domestically, the company is monitoring the situation, with the possibility of reducing product sizes — instead of raising prices — to offset higher production costs stemming from increases in fuel prices, the dollar, and supply chain disruptions caused by the war, Naguib said.

Foreign investor outflows from Egyptian debt instruments and disruptions to shipping traffic in the Suez Canal due to the conflict have pushed the dollar above 54 Egyptian pounds, up from the 48‑pound range before the war.

Click here to read the article in Arabic.