PETACH TIKVA, Israel – Gadi Lesin, President and Chief Executive Officer of Strauss Group, delivered yesterday (March 26, 2014) the following statement.
“Strauss Group concludes a good year across all segments in the Group, particularly in the operations of the coffee company Três Corações (3C) (1) in Brazil and Sabra’s dips and spreads operations in the U.S.
In 2013 the Group focused on smart cost management and growth while increasing investments in streamlining the supply chain and in innovation. This approach has consolidated the Group’s strength and has improved our ability to continue to successfully contend with the challenges that lie ahead in 2014.”
2013 highlights (2)
- Organic sales growth, excluding the FX impact, was 4.8%. Sales were c. NIS 8.1 billion (similar to last year), a decrease of 0.5%, reflecting negative translation differences as a result of continued strengthening of the NIS versus other operating currencies of the Group.
- Gross profit was c. NIS 3.1 billion (38.2% of sales), an increase of 8.5% compared to 2012. Gross margins were up 310 basis points compared to 2012.
- Operating profit (EBIT) totaled c. NIS 769 million (9.4% of sales), an increase of 23.0% compared to 2012. EBIT margins were up 180 basis points compared to 2012.
- Earnings per share were c. NIS 3.09, an increase of 38.8% compared to 2012.
- Cash flows from operating activities were c. NIS 716 million, an increase of 6.9% compared to 2012.
- Net debt as at December 31, 2013 totaled NIS 1,475 million, compared to NIS 1,357 million on September 30, 2013 and NIS 1,422 million on December 31, 2012.
(1) Três Corações (3C) – a company jointly held by the Group (50%) and by a local holding company, São Miguel Holding e Investimentos S.A. (50%) (data reflect Strauss Coffee’s share (50%) unless stated otherwise).
(2) Based on non-GAAP data, according to management reports, 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.
