Strauss Group: announces Q1-2018 financial results

Petach Tikva / IL. (sg) Israel’s Strauss Group Limited continues to deliver excellent results in sales, profit and cash flow, with sales up 4 percent during the first quarter 2018 (7.8 percent organic growth excluding foreign exchange effects) and net profit rising 29.6 percent to 146 million Shekel (NIS) – the Group said in a news release this week.

Interin CEO Giora Bardea: «Strauss Group continues to grow at an impressive rate, delivering excellent results in sales and profit. Revenues rose 7.8 percent in the quarter organically excluding FX translation, and performance has generated positive growth across all segments. Strauss Israel’s income rose 5.8 percent compared to the corresponding period as the company increased its market share in food + beverages to 12.2 percent. The coffee operation grew organically 7.3 percent in the quarter excluding FX translation. Sabra-Obela’s dips and spreads business grew 21.3 percent excluding foreign exchange effects, with Sabra’s market share in hummus in the US reaching 59.4 percent. Strauss Water revenues rose 7.6 percent, primarily thanks to strong growth in its operations in Israel. Net income in the quarter was NIS 146 million, up 26.9 percent compared to last year».

First Quarter Highlights

  • Organic sales growth, excluding foreign exchange effects, was approximately 7.8 percent. Shekel, sales were approximately NIS 2.2 billion compared to approximately NIS 2.1 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to approximately NIS 51 million mainly as a result of the depreciation of the BRL against the NIS compared to last year.
  • Gross profit was approximately NIS 833 million (approximately 38.4 percent of sales), up approximately 6.8 percent compared to the corresponding period last year. Gross margins were up approximately 1 percent.
  • Operating profit (Ebit) was approximately NIS 254 million (approximately 11.7 percent of sales), up approximately 14.0 percent compared to the corresponding period last year. Ebit margins were up approximately 1 percent.
  • EPS for shareholders of the Company was approximately NIS 1.28, up approximately 18.8 percent compared to the corresponding period.
  • Positive cash flows from operating activities totalled approximately NIS 106 million, compared to negative cash flows of approximately NIS 86 million in 2017.
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