Petach Tikva / IL. (sg) Israel’s Strauss Group Limited delivered yet another quarter of growth and rising profit, the company said in its Q3/2018 financial statement. The Group announces 2.9 percent organic sales growth, excluding foreign currency effects. Net income rose 15 percent to 144 million New Israel Shekel (NIS).
President and CEO Giora Bardea: «Strauss Group continues to deliver strong performance. The company’s sales and profit continue to consistently improve in Israel and in international operations, despite the significant negative impact of changes in foreign currency on shekel results, particularly in the business in Brazil. Our focus remains on innovation based growth, combined with continued investment in productivity across all operations.
«In Israel, Strauss continues to outpace market growth for the eleventh successive quarter. In the reporting period the company increased its market share to 11.9 percent of the food and beverage sector. Revenue and market share growth were achieved, among other things, thanks to new product launches in all divisions.
«We are posting an excellent quarter also in Strauss’s global operations, which account for around half of the Group’s business. The joint venture in Brazil continues to grow, with sales volumes increasing significantly. However, due to negative currency translations that detracted NIS 100 million, growth was not reflected in shekel revenues. The international dips and spreads business is also growing at an impressive rate, as is Strauss Water’s business in Israel and in other countries».
Third Quarter 2018 Highlights
- Organic sales growth, excluding foreign exchange effects, was approximately 2.9 percent. Shekel sales were approximately NIS 2.2 billion, similar to the corresponding period, and were impacted by negative currency translations amounting to circa NIS 108 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year. It is noted that as at the publication date of the financial statements the BRL has appreciated against the NIS, regaining circa 7.3 percent in value versus the exchange rate at the end of the quarter.
- Gross profit was circa NIS 812 million (circa 37.6 percent of sales), up circa 0.3 percent compared to the corresponding period. Gross margins were up circa 1.0 percent.
- Operating profit (Ebit) was circa NIS 235 million (circa 10.9 percent of sales), up circa 6.1 percent compared to the corresponding period last year. Ebit margins were up circa 0.9 percent.
- EPS for shareholders of the Company was circa NIS 1.25, up circa 14.8 percent compared to the corresponding period.
- Positive cash flows from operating activities totalled circa NIS 248 million, compared to circa NIS 181 million in the corresponding period.
Data represent 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 2018 Highlights
- Organic sales growth, excluding foreign exchange effects, was circa 5.6 percent. Shekel sales were NIS circa 6.4 billion compared to NIS 6.3 billion in the corresponding period in 2017; sales were impacted by negative currency translations amounting to circa NIS 210 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
- Gross profit was circa NIS 2,458 million (circa 38.2 percent of sales), up circa 4.9 percent compared to the corresponding period last year. Gross margins were up circa 1.2 percent.
- Operating profit (Ebit) was circa NIS 696 million (circa 10.8 percent of sales), up circa 10.4 percent compared to the corresponding period last year. Ebit margins were up circa 0.8 percent.
- EPS for shareholders of the Company was circa NIS 3.50, up circa 15.0 percent compared to the corresponding period.
- Positive cash flows from operating activities totalled circa NIS 544 million, compared to circa NIS 294 million in the corresponding period.
Data represent 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.
