“Strauss Group delivers another quarter of solid growth, following the trend of previous quarters” said today (August 7, 2018) Giora Bardea, Interim CEO of Strauss Group.
“The Group reports a strong set of results in Q2 2018 with sales and earnings growth in Strauss Israel and in its global operations.
The results of the Group’s operations in Israel reflect continued outperformance versus the domestic food and beverage market, taking the company’s market share in Israel to 12% of the food and beverage sector. Most of this revenue growth was achieved thanks to product innovation and diversification, which will be maintained in the future.
Strauss’s global operations post another excellent quarter across all businesses: coffee margins expand, the water business in China continues to gain momentum, sales at Sabra in North America are growing and Obela is strengthening its position in Australia and New Zealand.
The Group’s international activity, which accounts for around half of its revenue, continues to expand, and we plan to maintain this strategy going forward.”
Q2 2018 highlights (1)
- Organic sales growth, excluding foreign exchange effects, was c6.4%. Shekel sales were NIS c2.1 billion compared to NIS 2 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to NIS c53 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
- Gross profit was NIS c813 million (c38.7% of sales), up c8% compared to the corresponding period last year. Gross margins were up c1.8%.
- Operating profit (EBIT) was NIS c207 million (c9.9% of sales), up c11.2% compared to the corresponding period last year. EBIT margins were up c0.8%.
- EPS for shareholders of the Company was NIS c0.97, up c10.6% compared to the corresponding period.
- Positive cash flows from operating activities totaled NIS c190 million, compared to NIS c199 million in the corresponding period last year.
(1) 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
H1 2018 highlights (1)
- Organic sales growth, excluding foreign exchange effects, was c7.1%. Shekel sales were NIS c4.3 billion compared to NIS 4.1 billion in the corresponding period in 2017; sales were impacted by a negative currency translation amounting to NIS c104 million, mainly as a result of the depreciation of the BRL against the NIS compared to last year.
- Gross profit was NIS c1,646 million (c38.5% of sales), up c7.4% compared to the corresponding period last year. Gross margins were up c1.3%.
- Operating profit (EBIT) was NIS c461 million (c10.8% of sales), up c12.7% compared to the corresponding period last year. EBIT margins were up c0.9%.
- EPS for shareholders of the Company was NIS c2.25, up c15.3% compared to the corresponding period.
- Positive cash flows from operating activities totaled NIS c296 million, compared to NIS c113 million in the corresponding period last year.
(1) 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
