Petach Tikva / IL. (sg) Israel’s Strauss Group Limited announces a strong third quarter 2017 with 5.5 percent sales growth and net profits up by 35 percent, following outstanding results achieved by Strauss Coffee and Strauss Water and healthy growth exceeding the food and beverage market in Israel.
President and Chief Executive Gadi Lesin: «The Group continues to post excellent financial results in all key metrics. The third quarter perpetuates the trend of prior quarters and demonstrates a strong performance by Strauss Israel and noteworthy results achieved by the Group’s global growth drivers in the coffee and water companies, along with continued focus on efforts to improve Sabra’s results. The results of our operations in key countries, including Brazil, Russia, China, Australia and Israel – combined with the initial deliverables of implementing our strategy of focusing on our core businesses – have generated robustness and stability the Group can continue to build on in the future».
Q3 2017 highlights(1)
- Strong organic sales growth, excluding foreign exchange effects, was approximately 8.3 percent. Shekel sales were approximately NIS 2.2 billion compared to NIS 2.1 billion in the corresponding prior-year period; sales were impacted by negative foreign currency translation amounting to approximately NIS 34 million, mainly as a result of the weakening of the BRL against the NIS compared to the corresponding period.
- Gross profit was approximately NIS 809 million (approximately 36.6 percent of sales), up approximately 0.7 percent compared to the corresponding prior-year period. Gross margins were down approximately 1.7 percent.
- Operating profit (Ebit) was approximately NIS 221 million (approximately 10 percent of sales), up approximately 3.4 percent compared to last year. Ebit margins were down approximately 0.2 percent.
- EPS for shareholders of the Company was approximately NIS 1.09, up approximately 26.4 percent compared to the corresponding prior-year period.
- Positive cash flows from operating activities totalled approximately NIS 181 million, compared to approximately NIS 132 million in 2016.
(1) Based on the Company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period, including adjustments required for deferral of profit or loss from commodity derivatives until the inventory is sold to external parties, and other income and expenses, net, unless stated otherwise.
First nine months 2017 highlights(1)
- Organic sales growth, excluding foreign exchange effects, was approximately 7.3 percent. Shekel sales were approximately NIS 6.3 billion compared to NIS 5.9 billion in the corresponding prior-year period; sales were impacted by positive foreign currency translation of approximately NIS 4 million, mainly as a result of continued gains by the BRL against the NIS compared to the corresponding period.
- Gross profit was approximately NIS 2’342 million (approximately 37.0 percent of sales), up approximately 3.5 percent compared to the corresponding prior-year period. Gross margins were down approximately 1.3 percent.
- Operating profit (Ebit) was approximately NIS 631 million (approximately 10 percent of sales), up approximately 3.6 percent compared to last year. Ebit margins were down approximately 0.3 percent.
- EPS for shareholders of the Company was approximately NIS 3.04, up approximately 17.6 percent compared to the corresponding prior-year period.
- Positive cash flows from operating activities totalled approximately NIS 294 million, compared to approximately NIS 402 million in 2016.
(1) Based on the Company’s non-GAAP figures, which include the proportionate consolidation of jointly controlled businesses (without implementation of IFRS 11) and do not include share-based payment, valuation of the balance of commodity hedging transactions as at end-of-period, including adjustments required for deferral of profit or loss from commodity derivatives until the inventory is sold to external parties, and other income and expenses, net, unless stated otherwise.
