Strauss Group: reports Q4/2015 results

Petach Tikva / IL. (sg) Israel’s Strauss Group Limited announced 4.2 percent organic sales growth excluding foreign currency effects in the fourth quarter 2015. Operating profit increased 11.3 percent. The Group results continue to reflect a significant FX impact, particularly in Brazil and Russia, leading to a 6.1 percent drop in annual Shekel-denominated sales, the company said in a statement.

President and Chief Executive Officer Gadi Lesin: «As a leading player in a number of significant international markets, we are impacted – positively and negatively – by world macroeconomic trends, and continue to evaluate our business on a long term perspective that has delivered substantial value to the Group over the past decade. Strauss continues to implement its global growth strategy and will continue to invest in innovation and efficiencies throughout the value chain, across the Group and its geographic markets».

2015 Highlights

• Organic sales growth, excluding foreign exchange effects, was 2.5 percent. Shekel sales were 7.6 billion NIS compared to 8.1 billion NIS in the corresponding period last year, and reflected 635 million NIS negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
• Gross profit was 2’829 million NIS (37.0 percent of sales), down 9.3 percent compared to the corresponding period last year. Gross margins were down 1.3 percent.
• Operating profit (Ebit) was 659 million NIS (8.6 percent of sales), down 11.6 percent compared to the corresponding period last year. Ebit margins were down 0.6 percent.
• EPS for shareholders of the Company were 2.73 NIS, down 21.4 percent compared to the corresponding period.
• Cash flows from operating activities totalled 516 million NIS, compared to 561 million NIS last year.

Fourth Quarter Highlights

• Organic sales growth, excluding foreign exchange effects, was 4.2 percent. Shekel sales were 1.9 billion NIS compared to 2.1 billion NIS in the corresponding quarter last year, and reflected 236 million NIS negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
• Gross profit was 700 million NIS (36.8 percent of sales), down 6.7 percent compared to the corresponding period last year. Gross margins were up 0.7 percent.
• Operating profit (Ebit) was 158 million NIS (8.3 percent of sales), up 11.3 percent compared to the corresponding quarter last year. Ebit margins were up 1.5 percent.
• EPS for shareholders of the company were 0.69 NIS, down 12.4 percent compared to the corresponding period.
• Cash flows from operating activities totalled 426 million NIS, compared to 287 million NIS last year.