Kraft Heinz to spend US$50M to broaden Cairo facility | Meals Enterprise Africa

EGYPT – Kraft Heinz has introduced plans to considerably enhance its manufacturing capability in Egypt, following a US$50 million enlargement of its Cairo facility. 

This transfer is a part of a broader technique to reinforce the corporate’s export capabilities all through the Center East and Africa. 

The Cairo plant, which has been operational since 1991 and serves as Kraft Heinz’s solely manufacturing facility in North Africa and the Center East, is ready to extend its export output by 65%. 

In a bid to faucet into Africa’s rising market, significantly the tomato ketchup phase, Kraft Heinz is eyeing important progress. 

The tomato ketchup market in Africa is projected to generate US$3 billion in income in 2024, with an annual progress charge of 10.4% anticipated between 2024 and 2029. 

Globally, the US stays the most important income generator on this market, anticipated to contribute US$6.072 billion in 2024. 

The amount of the worldwide tomato ketchup market is anticipated to succeed in 1.45 billion kilograms by 2029, with a progress charge of three.9% in 2025.

The corporate can also be dedicated to investing in sustainable agricultural initiatives inside Egypt, aligning with the Egyptian authorities’s initiative to cut back reliance on imports and bolster Egypt’s place as a regional manufacturing hub.

Regardless of going through a slight dip in general income, reporting USUS$6.4 billion within the first quarter of 2024—a 1.2% lower from the earlier 12 months—the corporate continues to see sturdy efficiency in North America. 

Web gross sales on this area reached US$4.8 billion throughout the identical interval, the very best income contribution by any area for Kraft Heinz.

Kraft Heinz has been on a gentle trajectory, reporting US$26.64 billion in annual income for 2023, marking a modest enhance of 0.59% from the earlier 12 months. 

As of June 2024, the corporate’s gross margin stands at 34.29%, with a web margin of 10.62%. In 2023, the worldwide gross sales of Kraft Heinz’s condiments and sauces reached roughly $8.9 billion, with US$1.85 billion reported within the first quarter of 2024 alone.