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Friday 22 November 2024
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Strauss Group reports fourth quarter 2015 results

In Israel, Strauss delivers quarterly sales growth surpassing market growth while continuing to cut prices Group results continue to reflect a significant FX impact, particularly in Brazil and Russia, leading to a 6.1% drop in annual shekel-denominated sales

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PETACH TIKVA, Israel – Strauss Group reports fourth quarter 2015 results, with 4.2% organic sales growth excluding foreign currency effects[1] and operating profit up 11.3%.

In Israel, Strauss delivers quarterly sales growth surpassing market growth while continuing to cut prices Group results continue to reflect a significant FX impact, particularly in Brazil and Russia, leading to a 6.1% drop in annual shekel-denominated sales[2]

Gadi Lesin, President and Chief Executive Officer of Strauss Group, said on Monday: “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.”

Link to MD&A report Link to Analyst Presentation Link to Q4’15 conference call details

(1) Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the MD&A.

(2) 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.

 2015 highlights(1)

  • Organic sales growth, excluding foreign exchange effects, was 2.5%(2). Shekel sales were NIS 7.6 billion compared to NIS 8.1 billion in the corresponding period last year, and reflected NIS 635 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 2,829 million (37.0% of sales), down 9.3% compared to the corresponding period last year. Gross margins were down 1.3%.
  • Operating profit (EBIT) was NIS 659 million (8.6% of sales), down 11.6% compared to the corresponding period last year. EBIT margins were down 0.6%.
  • EPS for shareholders of the Company were NIS 2.73, down 21.4% compared to the corresponding period.
  • Cash flows from operating activities totaled NIS 516 million, compared to NIS 561 million last year.

(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)  Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.

Q4 2015 highlights(1)

  • Organic sales growth, excluding foreign exchange effects, was 4.2%(2). Shekel sales were NIS 1.9 billion compared to NIS 2.1 billion in the corresponding quarter last year, and reflected NIS 236 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 700 million (36.8% of sales), down 6.7% compared to the corresponding period last year. Gross margins were up 0.7%.
  • Operating profit (EBIT) was NIS 158 million (8.3% of sales), up 11.3% compared to the corresponding quarter last year. EBIT margins were up 1.5%.
  • EPS for shareholders of the company were NIS 0.69, down 12.4% compared to the corresponding period.
  • Cash flows from operating activities totaled NIS 426 million, compared to NIS 287 million last year.

(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) Also excluding the impact of classification of costs following the introduction of the Food Law, as explained in the Board of Directors Report.

 

 

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