PETACH TIKVA, Israel – Israeli group Strauss Coffee, the producer of coffee brand Doncafe in Romania, reported 9% higher sales in the third quarter, to 61 million shekels (EUR12.7 million), on the backdrop of higher volumes and prices, and the completion of Amigo brand acquisition.
A considerable improvement was posted in the Group’s net profit thanks to income arising from the revaluation of currency hedging transactions.
Gadi Lesin, President and Chief Executive Officer of Strauss Group (November 26, 2014): “We have concluded a positive quarter that reflects sales growth in all of the Group’s major business areas.
The forex challenges that were typical of the last three quarters were met with the right financial response, leading to an improved net profit. We are persevering in the strategy aimed at deepening our international operations, doubling production by Sabra in the US and further expanding our coffee businesses in Brazil and in Romania.
In parallel, in light of the challenges posed by the slowdown in the Israeli food market our product innovation efforts continue, coupled with the appropriate operational deployment.”
Coffee sales rose 6.7 percent to 1 billion shekels, led by an 8.6 percent increase in international coffee sales. Coffee sales in Israel, where the food market is slowing, fell 2 percent.
Q3 2014 highlights
- Organic sales growth, excluding the foreign exchange effect, was 7.1%. Shekel sales amounted to NIS 2.1 billion, an increase of 4.8%, and reflected NIS 43 million negative translation differences as a result of the continued strengthening of the NIS versus other functional currencies of the Group.
- Gross profit amounted to NIS 811 million (37.9% of sales), an increase of 1.5% compared to the corresponding period last year. Gross margins were down 1.2%.
- Operating profit (EBIT) amounted to NIS 227 million (10.6% of sales), an increase of 6.8% compared to the corresponding period last year. EBIT margins were up 0.2%.
- Earnings per share amounted to NIS 1.12, an increase of 46.8% compared to the corresponding period last year.
- Cash flows from operating activities amounted to NIS 146 million, compared to NIS 211 million in the corresponding period.
