Strauss has concluded a strong first quarter of 2016 with 7.7% growth in EBIT and 5.1% growth in net profit. Foreign currency effect led to a 2.6% drop in the Group’s Shekel sales; excluding foreign currency effect, the Group’s growth was 4.7%.
Strauss Israel concluded a quarter of positive growth contrary to the market’s trend. Sabra and Strauss Water continue to post an improvement in the operating profit.
Gadi Lesin, President and Chief Executive Officer of Strauss Group, said: “The first quarter of the year shows positive trends and strong results that have yielded growth in our shareholders’ earnings.
Innovation and efficiency enhancing moves have enabled Strauss Israel to post positive growth in contrast to the trend in the market, Strauss Water and Sabra also contributed to the ongoing improvement in the Group’s operating profit.
Although the coffee company has continued to post growth in local currency in Brazil and in the CIS countries, the foreign currency effect on translation into Shekels remains significant.
We believe that the measures we are applying in our key countries of operations, including Brazil, the US, Russia, China and Israel will continue to contribute to the bottom line despite the challenges we face in a tough competitive environment.”
Q1 2016 highlights(1)
- Organic sales growth, excluding foreign exchange effects, was 4.7%(1). Shekel sales were NIS 1.9 billion compared to NIS 1.9 billion in the corresponding period last year, and reflected NIS 134 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
- Gross profit was NIS 726 million, down 0.5% compared to the corresponding period last year. Simultaneously the gross margins were up to 38.6% compared to 37.8% in the corresponding period last year.
- Operating profit (EBIT) was NIS 213 million (11.3% of sales), up 7.7% compared to the corresponding period last year. EBIT margins were up 1.1%.
- EPS for shareholders of the Company were NIS 1.00, up 4.9% compared to the corresponding period.
- Negative Cash flows from operating activities totaled NIS 26 million, compared to negative Cash flows NIS 150 million in the corresponding period last year.
- In the first quarter, Strauss Israel’s sales grew by approximately 3%, despite a drop of 3% in the Israeli food and beverage market (according to StoreNext), with an increase in market share.
(1) Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (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 and other income and expenses, unless stated otherwise.
(1) Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (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 and other income and expenses, unless stated otherwise.
(1) Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (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 and other income and expenses, unless stated otherwise.
(2) Investments include the acquisition of fixed assets and investment in intangibles and deferred expenses.
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.
(1)Based on non-GAAP data, which include the proportionate consolidation of jointly-held partnerships (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 and other income and expenses, unless stated otherwise.
(2) Fun & Indulgence figures include Strauss’s 50% share in the salty snacks business. International Coffee figures include Strauss’s 50% share in the Três Corações joint venture (3C) – Brazil – a company jointly held by the Group (50%) and by the local São Miguel Group (50%). International D&S figures reflect Strauss’s 50% share in Sabra and Obela. Other Operations includes Strauss’s share in Strauss Water China (50%) until June 30, 2015.
Note: Financial data were rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands.
